Current Tennessee Mortgage and Refinance Rates

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How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Current 30-year fixed mortgage rates are averaging: 7.11%

Current 15-year fixed mortgage rates are averaging: 6.64%

Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners on the previous day for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.

Compare TN mortgage rates today

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 Refinance rates in Tennessee

  • Rate-and-term refinances allow you to alter your interest rate or loan term by using a new loan to pay off your old loan. In Tennessee today, refinance rates are higher on average than purchase mortgage rates.
  • Cash-out refinances are when you replace your current home loan with a new mortgage and, at the same time, access cash secured by your home equity. They usually come with higher rates than regular refinances.
  • Conventional refinances aren’t a part of a government loan program. Their rates are typically higher than government-backed refinances.
  • FHA refinances are insured by the Federal Housing Administration (FHA) and their rates are usually lower than conventional refinance rates. Right now, Tennesseans may find that FHA rates are lower by around 0.83 percentage points.
  • VA refinances are backed by the U.S. Department of Veterans Affairs (VA) and usually come with very low rates. They’re designed to help qualified military borrowers, so civilians can’t qualify.

Current 30-year fixed mortgage refinance rates are averaging: 7.31%

The current average rate for a 15-year fixed mortgage refinance is: 6.76%

Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners on the previous day for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
 See whether refinancing makes sense for you using our mortgage refinance calculator.

  What is the current mortgage rates forecast for 2024?

The current mortgage rates forecast calls for cautious optimism, predicting that rates will remain roughly where they are in the short term and trend downward over the course of the year.

LendingTree senior economist Jacob Channel doesn’t foresee any dramatic changes in 2024. That’s both good news and bad news — good for Americans worried that a housing market crash is around the corner, but bad for those hoping to see dramatic changes in home prices or affordability.

How do I get the best mortgage rate for my Tennessee home loan?

There are complex calculations and factors determining the mortgage rates lenders can offer you. However, there are also some simple steps you can take right now to get the best mortgage rate:

  1. Boost your credit. Your credit score has a huge influence on the mortgage rates you’re offered. In general, the higher your score, the better your rate.
  2. Lower your debt-to-income (DTI) ratio. Your DTI ratio signals how likely you are to be able to make your future house payments. In order to show lenders that you’re not a risky bet and receive lower rate offers, you should decrease your DTI ratio. That can look like increasing your income, paying off some debts or getting a cosigner.
  3. Buy a single-family, site-built home. If you have some flexibility with the type of home you choose to buy, avoid buying a manufactured home, a multifamily property, a vacation home or an investment property. Those are properties that lenders charge higher rates for, because they’re considered more risky to finance.
  4. Pay for mortgage points. Mortgage points can help shave down a high interest rate — typically by up to 0.25 percentage points per point. Making this extra upfront payment can save you money in the long run, but it’s also wise to weigh paying points against simply reducing the loan balance.
  5. Compare offers from multiple lenders. It can be tempting to skip this step. However, comparing offers from several lenders can save you thousands — or even tens of thousands — over the life of your loan, according to LendingTree data.
 Read more about our picks for the best mortgage lenders.
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When should I lock in my mortgage rate?

Once you find a house you love and get approved for a loan, you can reach out to your lender about a mortgage rate lock. The lock freezes your interest rate, so you won’t have to worry about it getting more expensive while you complete the closing process.

2024 Tennessee home loan programs

Great Choice Home Loan

The Tennessee Housing Development Agency (THDA) offers Great Choice loans to middle-income borrowers who want to purchase a home in the Volunteer State.

Great Choice loans can be conventional, FHA, VA or USDA loans, but will always come with fixed interest rates. That means affordable, predictable payments that won’t change over time and are spread out over 30 years.

 Who qualifies?

Borrowers must:

 Have a minimum 640 credit score
 Make a minimum down payment of 0% (USDA), 3.5% (FHA) or 22% (conventional)
 Meet the program’s income and purchase price limits
 Complete a homebuyer education course

Great Choice Plus Down Payment Assistance

THDA also offers down payment assistance, which can only be used with a Great Choice Home Loan. Your assistance funds will come in the form of a second mortgage and the money can be used to cover a down payment or closing costs. Borrowers can choose between two types of down payment assistance:

Amortizing:

  • Provides funds equal to 6% of the first mortgage amount
  • Requires monthly payments over a 30-year period
  • Will come due immediately if you sell your home before 30 years have passed

Deferred:

  • Provides $6,000
  • Doesn’t require monthly payments
  • Will be forgiven after 30 years
  • Will come due if you sell your home before those 30 years are up

 Who qualifies?

Borrowers must:

 Use the program in conjunction with a Great Choice home loan from THDA

New Start Loan Program

First-time homebuyers who want to own a newly built home have a unique opportunity to purchase their home at a very low interest rate. New Start offers 30-year loans with interest rates starting at 0% and capped at half of THDA’s standard home loans.

 Who qualifies?

Borrowers must:

 Be first-time homebuyers or a qualified military veteran or purchase a home in a targeted area
 Earn within the program’s income limits, which range from $50,280 to $71,750, depending on your location and household size
 Purchase a house for $200,000 or less
 Complete a homebuyer education class

 Who qualifies as a first-time homebuyer?

 People who have never owned a home
 People who haven’t owned a principal residence in the last three years

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Learn about different types of TN mortgage loans

 Tennessee conventional loans. Conventional loans can be a great choice for borrowers with a good credit score, even if they don’t have a huge down payment saved up. However, you’ll need to meet the minimum requirements set by Fannie Mae and Freddie Mac.

 Tennessee FHA loans. FHA loan requirements provide an alternative for borrowers who have lower credit scores or otherwise can’t meet conventional loan requirements. You can qualify with a credit score as low as 500, but you’ll have to make at least a 10% down payment. If your preference is to make a smaller down payment, you can put down as little as 3.5% as long as you have at least a 580 credit score.

  Tennessee VA loans. VA loan requirements are even more accessible, and come with some great perks — these include the ability to put 0% down without paying for mortgage insurance.

  Tennessee streamline refinances are for borrowers who want to replace a current FHA or VA loan with another loan of the same type. To do this, you’ll use an FHA streamline refinance loan or VA interest rate reduction refinance loan (IRRRL). They’re called “streamline” because they don’t require as much time or paperwork as standard refinances.

 Ready to compare top mortgage lenders with LendingTree?Get Custom Mortgage Rates and Offers Today