What are average mortgage rates in Tennessee in 2026?

Mortgage rates in Tennessee generally track national averages. As of 2026, expect 30-year fixed rates from 5.5% to 7.5% for good credit borrowers. Use CalcDeck's Tennessee mortgage calculator to model your payment at current rates.

How much are closing costs in Tennessee?

Closing costs in Tennessee typically range from 2% to 5% of purchase price, including lender fees, title insurance, and prepaid items. Use CalcDeck's Tennessee mortgage calculator to include closing costs in your calculation.

What are property tax rates in Tennessee?

Property tax rates in Tennessee range from 0.3% to 2.5% of assessed value. CalcDeck's Tennessee calculator includes property tax in your PITI payment.

What first-time homebuyer programs exist in Tennessee?

Tennessee offers down payment assistance, favorable-rate mortgages, and tax credits through state agencies. Use CalcDeck's Tennessee calculator to see how programs affect your payment.

How do I use the CalcDeck Tennessee mortgage calculator?

Enter home price, down payment, interest rate, and loan term. Adjust property tax and insurance to match Tennessee averages. Get instant monthly payment, total interest, and amortization schedule.

Tennessee Mortgage Calculator

Median home prices, property taxes, and monthly payment estimates for Tennessee homeowners.

Tennessee at a Glance

Median Home Price: $295,000
Property Tax Rate: 0.64%
Median Household Income: $63,274
Annual Property Tax: $1,888

Sources: Zillow ZHVI (2024), Tax Foundation (2023), US Census ACS (2023)

Monthly Mortgage Payment in Tennessee

Based on the Tennessee median home price of $295,000 at 6.7% interest (30-year fixed):

Payment Breakdown	20% Down	5% Down
Loan Amount	$236,000	$280,250
Principal and Interest	$1,523	$1,808
Property Tax (TN)	$157	$157
Homeowners Insurance	$125	$125
PMI	$0	$117
Total Monthly	$1,805	$2,207

How Much House Can You Afford in Tennessee?

Using the 28/36 rule (housing costs under 28% of gross income):

With 20% down, you need ~$77,365/year to afford Tennessee's median home
With 5% down, you need ~$94,607/year
Tennessee's median household income is $63,274

Tennessee insight: Tennessee's property tax rate of 0.64% is near the national average.

Tennessee Housing Market Overview

Tennessee's housing market has seen strong appreciation as Nashville and Memphis attract national attention. The statewide median of $295,000 reflects Nashville at $440,000, Memphis $210,000, Knoxville $315,000, and Chattanooga $285,000. Inventory is tight at 2.6 months. The median household income of $63,274 yields a price-to-income ratio of 4.7. The effective property tax rate of 0.64% is very low, costing $1,888/year on a median home. Tennessee has no state income tax on wages, making it attractive for remote workers. Music and tourism industries drive Nashville demand, while FedEx anchors Memphis.

First-Time Homebuyer Programs in Tennessee

The Tennessee Housing Development Agency (THDA) offers the Great Choice Home Loan program, providing 30-year fixed-rate FHA, VA, USDA, or conventional mortgages with down payment assistance up to $15,000 as a 0% deferred second mortgage. The HHF Down Payment Assistance program offers up to $15,000 in targeted counties. THDA also administers the Mortgage Credit Certificate (MCC) program, providing a 20% federal tax credit on mortgage interest. Local programs include Nashville's Homeownership Assistance Program ($10,000 grants) and Memphis's Down Payment Assistance Program ($7,500). Income limits: Davidson County caps at $88,000 for a two-person household; rural counties cap at $68,000.

Tips for Homebuyers in Tennessee

1) Tennessee's 0.64% property tax is extremely low—only ~$157/month on a median home—but Nashville's effective rate is higher due to city taxes. 2) The Nashville market is hyper-competitive for homes under $450,000; expect multiple offers and escalation clauses. 3) Memphis offers excellent value but verify neighborhood safety and school ratings before buying. 4) Buy in fall/winter for less competition and 3–5% price reductions. 5) Radon is elevated in East Tennessee (Knoxville, Chattanooga areas); always test and budget $800–$1,200 for mitigation. 6) Foundation settling is common in Tennessee's clay soils; always get a structural inspection.

Try the Mortgage Calculator with Your Numbers

Tennessee Mortgage FAQ

What is the median home price in Tennessee?

The median home price in Tennessee is approximately $295,000 as of 2024 (Zillow ZHVI). Your actual price will vary by city and neighborhood.

What is the property tax rate in Tennessee?

The effective property tax rate in Tennessee is approximately 0.64% (Tax Foundation). On a $295,000 home, that is about $1,888/year in property taxes.

How much income do I need to buy a home in Tennessee?

Using the 28/36 rule with 20% down at 6.7%, you would need about $77,365/year to afford the median Tennessee home at $295,000. With 5% down (including PMI), about $94,607.

What will my monthly mortgage payment be in Tennessee?

On Tennessee's median home price of $295,000 with 20% down at 6.7%, your total monthly payment (P and I plus tax plus insurance) is approximately $1,805. With 5% down including PMI, about $2,207.

Data sources: Zillow ZHVI typical home values (2024), Tax Foundation effective property tax rates (2023), US Census Bureau ACS median household income (2023). Mortgage rate assumption: 6.7% APR 30-year fixed. This is an estimate — use our calculator for personalized numbers.