Compare current mortgage rates in Tennessee. Whether you're buying a home in Nashville, Memphis, or Knoxville, find the best loan options for your needs.
Tennessee Financial Snapshot
UpstartMortgage in Tennessee: What You Need to Know
Tennessee, known as the Volunteer State, has a population of 7.1M with a median household income of approximately $57,000. The current unemployment rate stands at 3.1%, which lenders consider when evaluating applications from Tennessee residents.
7.1M
Population
$57,000
Median Income
3.1%
Unemployment
Major financial hub: Nashville is the primary financial center for Tennessee residents, with access to both national and regional lenders.
Tennessee offers a relatively affordable housing market compared to the national average. With no state income tax and a growing economy, it's an attractive destination for homebuyers. The median home price is around $325,000, making homeownership accessible for many. Current mortgage rates are competitive, with the 30-year fixed rate averaging 6.13% and the 15-year fixed rate at 5.50%.
Top Mortgage Product Recommendations
WiseIQ Mortgage
6.00% APR
Low rates for excellent credit
- Competitive 30-year fixed rates
- Streamlined online application
- Dedicated loan officers
SecureHome Loans
5.85% APR
Best for 15-year fixed mortgages
- Fast closing times
- Flexible repayment options
- Excellent customer service
Equity Builders
6.25% APR
Great for FHA loans
- Lower down payment options
- Credit score flexibility
- Government-backed security
Veteran's Choice Lending
5.75% APR
Specializing in VA loans
- No down payment required
- No private mortgage insurance
- Competitive rates for veterans
First State Bank
6.10% APR
Local expertise and personalized service
- Community-focused lender
- Variety of loan products
- Personalized financial advice
Tennessee Mortgage Rate Comparison
| Product | Interest Rate | APR | Monthly Payment |
|---|---|---|---|
| 30-Year Fixed | 6.13% | 6.25% | $1,822 |
| 15-Year Fixed | 5.50% | 5.65% | $2,450 |
| 20-Year Fixed | 5.875% | 6.05% | $2,100 |
| 5/1 ARM | 6.75% | 7.10% | $1,950 |
| FHA 30-Year Fixed | 5.99% | 6.80% | $1,780 |
| VA 30-Year Fixed | 5.75% | 6.50% | $1,700 |
How to Choose the Right Mortgage in Tennessee
Understand Your Credit Score
Your credit score significantly impacts the interest rates you qualify for. A higher score generally leads to lower rates. Check your credit report for errors and work to improve your score before applying for a mortgage.
Compare Different Loan Types
Explore various mortgage options like 30-year fixed, 15-year fixed, FHA, and VA loans. Each has unique benefits and eligibility requirements. Choose the one that best fits your financial situation and long-term goals.
Shop Around for Lenders
Don't settle for the first offer you receive. Contact multiple lenders, including banks, credit unions, and online mortgage companies, to compare rates, fees, and terms. This can save you a significant amount over the life of the loan.
Consider Future Financial Goals
Think about your financial plans for the next few years. Do you anticipate a career change, starting a family, or moving? Your mortgage choice should align with these goals to ensure it remains affordable and flexible.
Frequently Asked Questions
Q: What are the current average mortgage rates in Tennessee?
A: As of April 2026, the average 30-year fixed mortgage rate in Tennessee is around 6.13%, and the 15-year fixed rate is approximately 5.50%. These rates can vary based on lender, credit score, and market conditions.
Q: How does my credit score affect my mortgage rate?
A: Your credit score is a significant factor. Lenders use it to assess your creditworthiness. A higher credit score typically qualifies you for lower interest rates, while a lower score may result in higher rates or make it harder to get approved.
Q: What is the difference between a fixed-rate and adjustable-rate mortgage (ARM)?
A: A fixed-rate mortgage has an interest rate that remains the same throughout the loan term, providing predictable monthly payments. An adjustable-rate mortgage (ARM) has an interest rate that can change periodically, leading to fluctuating payments.
Q: Are there special mortgage programs for first-time homebuyers in Tennessee?
A: Yes, Tennessee offers various programs for first-time homebuyers, often through the Tennessee Housing Development Agency (THDA). These can include down payment assistance, reduced interest rates, and specific loan types like FHA or VA loans.
Q: How much down payment do I need for a mortgage in Tennessee?
A: The required down payment varies. Conventional loans typically require 3-20% down. FHA loans can be as low as 3.5%, and VA loans often require no down payment for eligible veterans. It depends on the loan type and your financial situation.