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Tennessee Mortgage Rates

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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

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