Current Tennessee Mortgage and Refinance Rates

Mortgage interest rates currently average 6.03% for 30-year fixed loans and 5.13% for 15-year fixed loans. Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days 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.

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Refinance rates in Tennessee

30-year FIXED

Current refinance rates are averaging:

6.39%

Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days 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.

15-year FIXED

Current refinance rates are averaging:

5.87%

Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days 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.
  • 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 VA rates. They’re designed to help qualified military borrowers, so civilians can’t qualify.

See whether refinancing makes sense for you using our mortgage refinance calculator.

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What is the current mortgage rates forecast?

The current mortgage rates forecast predicts that rates will remain around 6.0% in early 2026 after three rate cuts by the Federal Reserve in late 2025.

There haven’t been any dramatic changes in home prices or affordability in 2025, and ongoing economic uncertainty makes this unlikely to change in 2026. This means the homebuying market will remain difficult to enter for many, including first-time homebuyers.

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:

  • 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.
  • 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.
  • 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.
  • 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.
  • 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.

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.

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

Borrowers must:

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

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.
Home Home Loan Mortgage Rates Current Tennessee Mortgage and Refinance Rates