Today's Mortgage Rates in Tennessee (October 2024)
Updated: October 8, 2024
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Today's 30-year mortgage rate in Tennessee is 5.94%, a bit different than the current national average rate of 6.40% for the same type of mortgage. Tennessee homebuyers have access to beneficial programs like Great Choice Home Loans for First-Time Homebuyers and Homeownership for Heroes, which can help reduce mortgage costs.
MoneyGeek uses publicly available data from Zillow for the rates on this page. Mortgage rates shift daily, and we take a snapshot of rates to analyze rate information for Tennessee. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources.
Unless specifically noted otherwise, rates featured in the content are annual percentage rates (APRs).
This data was last updated on October 2024.
In Tennessee, the October 2024 average APR for a 30-year fixed-rate mortgage has decreased to 5.9% from 6% in September. This slight downtick means a potential saving over the life of the loan. For a $250,000 loan with a 20% down payment, it could save you around $2,033 in total interest, not including additional expenses like property taxes or HOA fees. Monitor these rates, as a significant change could influence your budget in the long run.
Understanding the current mortgage rates in Tennessee helps you budget for a home purchase.
Understanding today's mortgage interest rates in Tennessee amid shifts in the housing market can benefit first-time buyers and those looking to refinance.
First-time homebuyers
Knowing current mortgage rates helps first-time homebuyers in Tennessee gauge what rates to expect and spot competitive offers.
Homeowners with mortgages
Homeowners may benefit from lower payments and decide to pursue a mortgage refinance if the rates are favorable.
Purchase rates and refinance rates differ. In Tennessee, the current mortgage rate for a 30-year fixed loan is 5.94%, while opting to refinance has a higher rate of 6.00%. Keep this difference in mind as you consider your loan options. Understand rates can vary whether you're entering the market or aiming to adjust your current loan.
A 30-year fixed-rate mortgage in Tennessee usually has a higher interest rate than a 15-year fixed-rate mortgage. The lender faces more risk with a longer loan term, such as interest rate fluctuations and the possibility of default.
Consider using a mortgage calculator to decide between different mortgage loan types in Tennessee. It can help you understand how different rates affect your monthly payments and empower you to make an informed decision.
| 5.00% | APR5.16% |
An interest rate is how much you pay each year to borrow money for a mortgage. The average mortgage interest rate for a 30-year fixed mortgage in Tennessee is 5.88%.
APR stands for annual percentage rate. It includes your mortgage interest rate plus fees like mortgage points. For a 30-year fixed mortgage in Tennessee, the average APR is 5.94%, showing the total loan cost each year.
In Tennessee, if you have a credit score of 740 or higher and make a 5% to 20% down payment, the average APR for a 30-year fixed mortgage is 6.09%. On the other hand, with a credit score below 680, the rate goes up to 7.29%.
Your credit score influences the mortgage rates you might get in Tennessee. Check out the interactive table below to see the different rates you could qualify for based on your credit score and down payment amount.
| 10-year Fixed | APR5.11% |
| 15-year Fixed | APR5.18% |
| 20-year Fixed | APR5.96% |
| 30-year Fixed | APR6.23% |
| 5-year ARM | APR7.50% |
| 7-year ARM | APR7.32% |
In October 2024, 30-year fixed-rate VA loans have the lowest average APR at 5.56% for 30-year fixed-rate mortgages in Tennessee. Knowing the differences among mortgage options can impact your budget over the life of your loan. Below, you'll find a rundown of mortgage loan types available in Tennessee.
Mortgage Type | Definition | Impact on Rates | 30-Year Rates in Tennessee |
|---|---|---|---|
Conventional Loans | A conventional loan is not guaranteed or insured by government entities. | Your credit score and down payment size can influence conventional loan rates. | 5.94% |
FHA Loans | An FHA loan is insured by the Federal Housing Administration. | FHA loans usually have lower entry requirements but may carry higher rates. | currently unavailable |
VA Loans | A VA loan is guaranteed by the Department of Veterans Affairs. | VA loans offer competitive rates due to government backing for qualified individuals. | 5.56% |
USDA Loans | A USDA loan is backed by the United States Department of Agriculture. | USDA loans may offer lower rates as they are designed to help rural homebuyers. | currently unavailable |
Jumbo Loans | A jumbo loan exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. | Jumbo loans often have higher rates because they present more risk to lenders. | 6.15% |
Mortgage rates in Tennessee are categorized into fixed and adjustable types.
As of October 2024, Tennessee's average APR for a 30-year fixed loan is 5.94% and 7.27% for a seven-year adjustable-rate mortgage.
New American, Better and Bank of America are solid options for securing a mortgage in Tennessee. These lenders were specifically chosen for their availability in the state, accreditation by the Better Business Bureau and their homeowner assistance programs. Remember that this list isn't exhaustive; other lenders may better suit your situation.
Your mortgage rate in Tennessee can vary depending on the lender you select. Each lender has unique mortgage products, and the terms of your loan can impact the rate you get. It's wise to compare rates from several mortgage lenders in Tennessee to secure the best deal possible
New American has diverse mortgage options in Tennessee. Its offerings include conventional and FHA loans, providing flexibility to meet your needs. The minimum credit score for getting an FHA loan is 580, while you need a 680 credit score for a jumbo loan. Down payments are as low as 3% for conventional loans and 3.5% to 10% for FHA loans. Veterans and eligible servicemembers don't need a down payment for VA loans.
New American's customer service is available from 8 a.m. to 9 p.m. CT on weekdays and 10 a.m. to 2 p.m. CT on Saturdays. Support can be reached by phone or email. If you find yourself in a rough patch, it offers assistance programs to help homeowners stay on track in their homeownership journey. Whether buying your first home or refinancing, this lender provides the options and support to guide you through the process.
Pros
Cons
Better is an online-only mortgage lender providing various options like fixed-rate and adjustable-rate mortgages. It also offers jumbo loans, which require a 700 credit score. Conventional loans are accessible with a credit score of 620, while an FHA loan requires just 580. The minimum down payment for regular non-FHA loans is 3% to 5%. However, if your credit score is below 580, you'll need a 10% down payment. FHA loans require as little as 3.5% if your score is at least 580. If a co-borrower is involved but not living on the property, the down payment requirement jumps to 25%.
Better's customer service is available from 8 a.m. to 9 p.m. ET on weekdays and weekends. Support channels include phone and email, allowing for a responsive support experience. If you need assistance, Better offers a Homeowners Assistance Program — the Better Real Estate discount — to help with the homeownership journey. Remember these elements as you navigate the path to your new Tennessee home with Better.
Pros
Cons
Bank of America provides a range of mortgage products in Tennessee, available both online and in person. You'll find options like fixed-rate and adjustable-rate mortgages and jumbo, FHA and VA loans tailored to different needs. The Affordable Loan Solution mortgage is an attractive option for many, requiring just a 3% down payment. For veterans opting for VA loans, there is no down payment requirement. Minimum credit scores for these loans aren't disclosed publicly, which means you have to contact Bank of America for more details.
Bank of America supports its borrowers with ample customer service hours. You can speak with someone Monday to Friday from 8 a.m. to 10 p.m. ET and Saturdays until 6:30 p.m. ET. This service is accessible online, over the phone or in person, ensuring help is readily available. The lender goes beyond lending with programs aimed at assisting homeowners like America's Home Grant® and Down Payment Grant. Such offerings reveal Bank of America's commitment to helping borrowers navigate the home-buying process.
Pros
Cons
Homeownership has hidden costs that might impact your budget. If you live in Tennessee, you can get help from the Tennessee Housing Development Agency, which offers different mortgage programs.
Program | Content |
|---|---|
Great Choice Home Loans for First-Time Homebuyers | The Great Choice Home Loans for First-Time Homebuyers offers a steady 30-year loan to Tennessee's first-time buyers with middle income. It's built for stability, with no surprise interest rate hikes, manageable monthly payments and down payment relief. Qualifying starts with a 640 credit score, but there's help if your score is lower. It even supports manufactured homes off-site, easing upfront financial worries. |
Homeownership for Heroes | Homeownership for Heroes supports Tennessee's community heroes: those in the military, law enforcement, EMTs and firefighters. This program offers a reduced interest rate of 0.5%, bypasses the first-time buyer rule and offers up to 100% financing. Eligible heroes with at least a 640 credit score also gain access to down payment assistance, making this a substantial offer. |
Repeat Homebuyer | The Repeat Homebuyer program welcomes first-time and previous homeowners. You qualify if you buy in certain counties, serve in the military or haven't owned for three years. This program promises the same 30-year term benefits, fixed rates and down payment aid as the first-timer's loan. You can access up to 96.5% financing if you have a 640 credit score. |
Down Payment Assistance | If you have a Great Choice Home Loan, you can access the Down Payment Assistance program. The program offers a deferred $6,000 loan with no interest, which you can pay at the term's end or after the sale of your house. It also offers a loan worth 6% of your purchase price, repaid over 30 years. A quick education course is required to qualify. |
Understanding today's mortgage rates in Tennessee is a common concern for homebuyers. We've addressed your questions to help you make informed mortgage decisions as you buy a home in Tennessee.
Current average APRs in Tennessee vary based on loan type and other factors. For example, as of October 2024, a 30-year fixed conforming loan has an average APR of 5.94%, while a 30-year fixed rate jumbo loan has a 6.15% average APR.
Tennessee's mortgage rates are competitive compared to national rates. For instance, as of October 2024, the average APR for a 30-year fixed rate mortgage is 5.94% in Tennessee, slightly lower than the national average of 6.40%.
Your credit score significantly impacts the mortgage rates you receive in Tennessee; higher credit scores often result in low mortgage rates.
Yes, there are mortgage programs in Tennessee such as Great Choice Home Loans for First-Time Homebuyers, Homeownership for Heroes, and Repeat Homebuyer options.
To get the best mortgage rate in Tennessee, improve your credit score, shop around with multiple lenders, and consider making a larger down payment.
The average refinance rates in Tennessee as of October 2024 are 5.41% for a 15-Year Fixed loan and 6.00% for a 30-Year Fixed loan. Learn more about today's refinance rates in Tennessee.
To calculate your mortgage payments, utilize a mortgage calculator for Tennessee. This tool will help estimate your monthly payments based on various factors.
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
