Tennessee Mortgage Calculator: Estimate Your Monthly Payment
Updated: January 18, 2024
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If you’re applying for a home mortgage in Tennessee, there are various fees in your monthly payment other than the loan’s principal and interest. They include real estate taxes, home insurance and homeowners association (HOA) dues, when applicable.
The average cost of property tax in Tennessee is $1,548 per year. It is the 15th most affordable state for property taxes. Meanwhile, homeowners insurance averages $3,466 per year, while HOA dues vary with a property.
Overall, in Tennessee, a mortgage payment is approximately $12 lower than the national average.
Use MoneyGeek’s Tennessee mortgage calculator to see an estimate of the total cost of buying a house. You can adjust your down payment amount and loan term and input relevant fees to obtain an accurate picture. Our guide also has resources that you can use in your home-buying journey to lower your payment.
Start Here: Plug In Your Mortgage Factors
MoneyGeek’s Tennessee mortgage calculator provides a general approximation of your monthly mortgage payment using 12 relevant factors. To help you understand these factors better, we have their descriptions below.
Why and How to Use Our Mortgage Calculator
On average, a house in Tennessee costs $170,800, while Tennesseans owe roughly $157,080 on their mortgages. With MoneyGeek’s Tennessee mortgage calculator, you see how much the property you want, based on its price and more, costs. It is an important step to make sure you can pay for the house monthly without hardship.
Our calculator determines payments based on home price or mortgage amount. It breaks down the monthly payment’s principal and interest and allows you to input property taxes, homeowners insurance and homeowners association (HOA) dues. Adjusting the loan term to see how prices change based on the loan’s duration is also possible.
Review the mortgage factors below and familiarize yourself with what they mean.
Home Price:
Input the home’s selling price or the desired loan amount in this box.
Down Payment:
This is the upfront payment you need to make for the home purchase. You can input either a percentage or an amount in dollars.
Interest Rate:
You can use MoneyGeek’s daily mortgage rate report or a mortgage lender’s rate you qualify for here.
Loan Terms:
Select the number of years you want the loan to last. The most common terms are 15 and 30, but 10 and 20 are options.
Payments per Year:
This refers to the number of payments per year for the loan. The most common payment schedule is monthly or 12 per year.
Property Tax:
In Tennessee, the average annual property tax is $1,548. You can input this under “Other fees.”
HOA Fees:
If you must pay homeowners association dues for your property, include the amount under “Other fees.”
Principal & Interest:
The principal is the amount that pays the loan, while the interest is the charge you’re paying to the lender for giving you a loan.
Monthly Payment:
This is the amount you need to pay monthly for your house and includes principal, interest, property taxes, home insurance and HOA fees.
Principal Payment:
It’s the part of your monthly mortgage payment that reduces your total loan balance.
Interest Payment:
This is the part of your monthly mortgage payment that pays your interest charges. Interest payments do not decrease the loan balance.
Total Cost With Interest:
This refers to the sum of your principal balance repayment and total interest paid for the loan term.
If you’re on a budget, there are many things you can do to reduce your monthly mortgage payment in Tennessee.
- Buy a less expensive house. Since your mortgage payment depends on your loan amount, buying a more affordable house reduces it.
- Different location. Property prices depend on location, and Tennessee has the 16th cheapest average mortgage payment in the United States. But property taxes vary by area. The average tax rate is 0.71% in Tennessee. You may lower your property taxes by choosing a different spot in the state.
- Find a lower interest rate. Some lenders may offer you a lower interest rate if you make a larger down payment. You can also improve your debt-to-income ratio and credit score before applying for a loan to have a better rate.
- Extend your loan term. You have lower monthly payments by extending your loan term, but you pay more interest.
Next Steps: What to Do After You Have Estimated Your Mortgage Payments
Buying a house in Tennessee can be a challenging journey. Luckily, MoneyGeek has relevant resources to help you in the process.
- Shop & Compare Rates - Shop around and compare interest rates from various lenders before proceeding with your loan. Visit our Tennessee mortgage rate page for more details.
- Not Ready To Buy? - Consider if buying a house or renting is better right now.
- Learn More - There are many kinds of loans available to finance a home purchase, such as reverse mortgages, VA loans and FHA loans.
Frequently Asked Questions About Mortgages in Tennessee
Generally, lenders prefer that your debt-to-income ratio be 43% or lower. However, affordability depends on your financial situation and personal preferences.
On average, the outstanding mortgage amount in Tennessee is $157,080.
Some loan programs require around a 5% down payment in Tennessee. Government-supported programs such as those offered by the VA and USDA don’t always require down payments. With a conventional loan, you often need 20% of the purchase price as a down payment.
Private mortgage insurance (PMI) is a requirement if you put less than 20% down on your home purchase. Once you have 20% equity in the home, you can request to remove PMI or refinance to get rid of it.
The average Tennessee annual property tax is $1,548. It’s the 15th most affordable in the United States.
The average monthly mortgage payment in Tennessee is $1,147, which is $12 cheaper than the national average.
The average home value in Tennessee is $170,800.