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Tennessee Mortgage Calculator

The median home price in Tennessee is $330,000. With a 20% down payment at the state's average 30-year fixed rate of 7.1%, your estimated all-in monthly payment (principal, interest, taxes, and insurance) is approximately $2,103. Tennessee's property tax rate of 0.71% annually is below the U.S. national average of 1.07%.

A buyer earning Tennessee's median household income of $65,000 would dedicate roughly 39% of gross monthly income to housing — significantly strained by the standard 28% guideline.

Median Home Price

$330,000

Avg 30-yr Rate

7.1%

Property Tax Rate

0.71%/yr

Est. Monthly PITI

$2,103

Mortgage Calculator

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Total Monthly Payment

$2,102.75

Principal & Interest$1,774.16
Property Tax$195.25
Home Insurance$133.33
Total$2,102.75

Loan Amount

$264,000

Total Paid

$638,699

Total Interest

$374,699

How to Get a Mortgage in Tennessee

  1. 1 Check your credit score. In Tennessee, most conventional lenders require 620+; FHA allows 580+ with 3.5% down.
  2. 2 Save for your down payment. On a $330,000 Tennessee home, 20% down is $66,000 — avoiding PMI and reducing your monthly payment.
  3. 3 Get pre-approved from 2–3 lenders. Rates in Tennessee average 7.1%, but shopping lenders often saves 0.25–0.5%.
  4. 4 Account for closing costs — typically 2–5% of the loan amount, or $7,920–$13,200 on a median Tennessee purchase.
  5. 5 Budget for ongoing costs: Tennessee property taxes average 0.71%/yr ($2,343/yr on the median home), plus homeowner's insurance averaging $1.600/yr.

Monthly Cost Breakdown — Median Tennessee Home

Principal & Interest (7.1%, 30yr, 20% down) $1,774
Property Tax (0.71%/yr) $195
Homeowner's Insurance $133
Total PITI $2,103

Excludes HOA fees, PMI (not required with 20% down), and utilities.

Tennessee Mortgage FAQs

What is the average home price in Tennessee?

The median home price in Tennessee is $330,000 (2024 estimate). With a typical 20% down payment of $66,000, a buyer would finance $264,000 at a 30-year fixed rate.

What are property taxes like in Tennessee?

Tennessee has an average effective property tax rate of 0.71% of assessed home value. On a $330,000 home, that's approximately $2,343 per year ($195/month) — below the national average of 1.07%.

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

To keep housing costs at or below the recommended 28% of gross monthly income on a median-priced Tennessee home, you'd need to earn roughly $90,118 per year. The state's median household income is $65,000, meaning the typical household allocates about 39% of gross income to housing — significantly strained.

What is the average mortgage rate in Tennessee?

The average 30-year fixed mortgage rate in Tennessee is approximately 7.1% (2024 average). Rates vary by lender, credit score, loan-to-value ratio, and loan type. Borrowers with credit scores above 740 typically qualify for the best available rates.

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