Mortgage Rates | Clouds in the sky
  • CloseYourOwnLoan.com
    5/1 Yr. ARM
    $884/mo
    4.716%
    APR
    3.375%
    RATE
    GO
  • LoanDepot, LLC
    5/1 Yr. ARM
    $1,120/mo
    5.272%
    APR
    5.375%
    RATE
    GO
Provided by HSH

Initial rates displayed are based on a $200,000 loan for a purchase or refinance transaction of an owner occupied, single-family residence with 62.5% LTV and 740 credit score and no cash out. By adjusting these assumptions you can update the type of loan, property, credit rating, and down payment that you are looking for. The rates were submitted by each individual lender/broker on the date indicated. Rate/APR terms offered by advertisers may differ from those listed above based on the creditworthiness of the borrower and other differences between an individual loan and the loan criteria used for the HSH quotes. Annual percentage rate in ARM products may increase after the loan is closed. More Info. These quotes are from banks, thrifts and brokers who have paid for a link to their website in the listings above and you can find additional information about their loan programs on their websites.

Tennessee Mortgage Rates

Comparing Tennessee Mortgage Rates with National Rates

In order to help you see how Tennessee mortgage rates compare with National rates, check out the following rate table from the industry website mortgagenewsdaily.com. These rates represent national averages and are based on specific loan assumptions. 

Shopping for Best Mortgage Rates in Tennessee

It is important to shop around for the best terms. Make sure that you compare rates, lender fees and learn about third party fees. When comparing mortgage offers check out the term (length), interest rate (fixed vs. variable), and if applicable the cost of mortgage insurance. Get more information about mortgage rates and mortgage fees. Also, FHA loans, which always require mortgage insurance, differ from conventional loans, which require Private Mortgage Insurance (PMI) if your loan to value ratio (LTV) is over 80%.  Make sure that you use all of your costs when comparing loans.

Qualifying for a Mortgage in Tennessee

In order to qualify for the best mortgage rates in Tennessee it is important to have an excellent credit score. Also, you want to make sure that your debt to income ratio (DTI) and your downpayment or equity position , your loan to value ratio (LTV) are sufficient to qualify. Read this Bills.com article about qualifying for a mortgage.

 Mortgage Resources for Tennessee

Tennessee is the sixteenth most populous US state. According to the US census, as of 2017, there is an estimated population of over 6.6 million residents, which represents 2.1% of the US population. Based on statistics from the US Department of Agriculture Tennessee has a large agricultural production including livestock, broilers, soybean, cotton and tobacco crops. According to wikipedia there are a number of major corporations in Tennessee, including “ FedEx, AutoZone and International Paper, all based in Memphis; Pilot Corporation and Regal Entertainment Group, based in Knoxville; Eastman Chemical Company, based in Kingsport; the North American headquarters of Nissan Motor Company, based in Franklin; Hospital Corporation of America and Caterpillar Financial, based in Nashville; and Unum, based in Chattanooga.”

During the 2007 housing crisis and Great recession housing prices in Tennessee were more stable than most parts of the USA. According the the FHFA HPI (all transactions) home prices between 2005 and Q1 2017 increased by 17% vs. a 14% for the US. In addition, housing prices did not decline below the 2005 level. In Tennessee, after reaching a 17% increase and peaking in Q1 2008m housing prices dropped by only 9%. For the US, housing prices peaked at 14% after their 2005 level and dropped by more than 18%.

Based on 2015 HMDA data, Tennessee compared to National loan program distribution, had a lower percentage of conventional loans (61% vs 69% nationally). VA loans as well as rural loans were a about 3% higher than the national average. In addition. In Tennessee, purchase loans accounted for 57% of the 2015 loans versus 51% for the US.

Here are some outside resources that can help you understand the Tennessee mortgage environment:

  1. FHA loan amounts in Tennessee: (note:set the table to Tennessee). There are 95 counties in the state of Tennessee of which none of the single family units meet the Highest loan limit, currently at $636,150. The vast majority, 85% of the counties are at the Standard loan limit, currently at $275,665. The remaining 15% are between those two limits (all at $466,900).
  2. FHFA Conventional Loan Amounts: Check the pdf from FHFA for all states and search for Tennessee and your county or check out the FHFA conforming limit map. Although the FHFA has higher base limits than the FHA, currently at $424,100, 85% of the counties meet this limit. None of the counties have the Highest Loan limit of $636,150. The remaining 15% are between those two limits.
  3. Tennessee Mortgage Programs: The Tennessee Housing Development Agency (THDA) aims to provide affordable housing opportunities. They offer a number of Great Choice Home Loans programs for first-time homebuyers, repeat buyers, and Active Duty Military & Veterans. Their programs include a down payment financial assistance component for eligible borrowers. They have two programs, the Great Choice Plus, and the HHF Down Payment Assistance. The HHF Down Payment Assistance is available in 55 designated ZIP Codes located in 30 Tennessee counties that were hardest hit in the economic downturn and is recovering more slowly than other areas across the state. There are minimum credit score, property, and income requirements in the various programs.
  4. Check out the Hud’s website for more information about homeowner programs and homeowner education programs. 

Mortgage Trends and Statistics for Tennessee

Mortgage rates, loan amounts, LTV, (etc) vary based on areas. The FHFA provides a useful insight into differences in conventional loans. We are providing historical data based on State based information for 2002 - 2015.

Source of Data: FHFA Historical Table  - (TERMS ON CONVENTIONAL HOME MORTGAGES) Table 15 - By State and Table 12 Fixed-Rate Mortgages 

Check out some differences between Tennessee and the US:

  • Mortgage Rates for Conventional Loans in Tennessee
  • Mortgage Fees for Conventional Loans in Tennessee
  • Purchase Price for Conventional Loans in Tennessee

 

Mortgage Rates for Conventional Loans in Tennessee vs USA

 

Mortgage Fees for Conventional Loans  Tennessee vs USA

 

Purchase Price for Conventional Loans in Tennessee

20 Comments

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  • 35x35
    Aug, 2014
    Brad
    These rates are very helpful. I would recommend locking in long duration (30 year fixed rates) loans if you plan to live in your home for an extended period of time.
    1 Votes

  • GM
    May, 2013
    Grant
    Are rates rising, and should I lock in a rate in the current low mortgage rate environment?
    2 Votes

    • BA
      May, 2013
      Bill
      Mortgage rates constantly fluctuate. I recommend shopping around for a mortgage that fits your budget and has the right mix of interest rate and fees. Locking your rate is a great idea if you know the time frame that you will close the loan. Most loan offers have a 30-day lock period. If you pass the time of the lock, you may need to pay additional fees.
      3 Votes

  • NR
    Sep, 2012
    Natalia
    Cars and houses are quite expensive and not everybody is able to buy it. However, loans are created to support different people in such kind of situations.
    2 Votes

  • MC
    Jan, 2012
    Mark
    Playa Del Rey, CA
    Are mortgage rates on HARP loans higher than on conventional loans? What about the fees? Thanks!
    0 Votes

    • BA
      Jan, 2012
      Bill
      Mortgage rates and fees for HARP loans, will be similar to rates on other conventional loans. However, due to the fact that HARP loans are offered by fewer lenders, you can expect a premium on the price. Many people are restricted to going to their original lender/servicer, due to a high DTI. If that is the case the room for negotiating is low. I recommend that you shop around for the best rate. The automated underwriting systems for new lenders will be available in March 2012.
      2 Votes

  • KH
    Nov, 2011
    kelly
    Palm Bay, FL
    I went through a divorce in 2005 and found out that my name was not on anything we were paying on. So even though we owned 2 homes and paid on time always, my FICO credit score right now is 530. I know this is really bad. I am in the position now to be able to put at least $20,000 down on a home listed at $87900. Do you think anyone will give me a loan with this awful credit score. I do have a steady income and very low bills. No credit cards or other debt. only utilities and rent right now. Even with my down payment is it going to be implossible to find someone to approve me for a mortgage loan?
    0 Votes

    • BA
      Nov, 2011
      Bill
      I doubt you will qualify for a reasonable loan when you have, essentially, no credit history. Focus your energy on building your credit history.
      0 Votes

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