Tennessee's unique combination of no state income tax and low property tax rates makes it an attractive state for homebuyers. Our mortgage calculator helps you understand how these factors translate into lower monthly payments. Whether you're buying in Nashville's booming market or more affordable cities like Memphis or Knoxville, our tool provides personalized calculations to fit your Tennessee home purchase.
Calculate Your Tennessee Mortgage Payment
Enter the home price, down payment, and interest rate to see your estimated monthly payment including principal, interest, taxes, and insurance.
Calculator Tips for Tennessee Homebuyers
Get the most out of your mortgage calculation with these expert tips.
Compare Loan Terms
Try 15-year vs 30-year terms to find the right balance of payment size and total interest paid over the life of your loan.
Down Payment Impact
Increasing your down payment by even 5% can significantly reduce your monthly payment and help you avoid paying PMI altogether.
Include All Costs
Remember to budget for property taxes, homeowners insurance, and potential HOA fees when estimating your true monthly housing cost.
Get Exact Numbers
Contact NMHL for current rates specific to your credit profile and loan amount. Our calculators estimate — we can provide exact figures.
Turn Numbers Into Your New Home
This calculator gives you a solid starting point. When you are ready for exact numbers based on your credit profile and down payment, our loan officers provide personalized quotes — no obligation, no surprises.
Your Path to a Tennessee Mortgage
From calculator to closing — here is how it works.
Choose Your Program
Explore FHA, VA, conventional, and other loan types to find the best fit for your situation.
Get Pre-Approved
Submit a quick application to see what you qualify for — no impact to your credit score.
Calculate Your Payment
Use our calculator with your actual rate to see exactly what your monthly payment will be.
Close on Your Home
Our team guides you through closing with dedicated support at every step.
Loan Programs Available in Tennessee
Click a program to explore rates, requirements, and benefits.
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Understanding Tennessee Mortgage Calculations
When calculating your mortgage payments in Tennessee, several state-specific factors come into play. First, Tennessee's lack of state income tax means you'll have more disposable income for mortgage payments. Second, the state's relatively low property tax rates (averaging 0.56%) will be factored into your escrow payments, potentially lowering your total monthly housing costs compared to other states.
Our mortgage calculator takes these Tennessee-specific factors into account, providing a more accurate picture of your potential mortgage payments. You can compare different loan scenarios, including varying down payments and loan terms, to find the best fit for your Tennessee home purchase.
Tennessee's property tax rates vary by county. Research your specific location to understand the exact tax implications for your home purchase.
Tennessee-Specific Mortgage Programs and Assistance
Tennessee homebuyers have access to various mortgage programs and assistance initiatives. The Tennessee Housing Development Agency (THDA) offers the Great Choice Home Loan program, which provides 30-year fixed-rate mortgages and up to $6,000 in down payment assistance for eligible buyers. Additionally, many rural areas in Tennessee qualify for USDA zero-down financing, making homeownership more accessible.
- FHA loans with lower down payment requirements
- VA loans for veterans with favorable terms
- USDA loans for rural areas with zero-down financing
- THDA Great Choice Home Loans with down payment assistance
Our mortgage calculator can help you explore these options and understand how they impact your monthly payments.
Tennessee Housing Market Overview
The Tennessee housing market varies significantly across different regions. Nashville has seen significant price growth, with a median home price around $430,000. In contrast, cities like Memphis and Knoxville offer more affordable options, with median prices ranging from $220,000 to $310,000. Suburbs and rural areas also provide a range of choices for homebuyers.
When using our mortgage calculator, you can compare payments across these different markets to find the best fit for your budget and preferences.
Tennessee Mortgage Regulations and Disclosures
Tennessee has specific regulations regarding mortgage transactions. The state requires certain disclosures to be made to borrowers, including information about the loan terms, interest rates, and potential risks. Additionally, Tennessee law governs the handling of escrow funds and the payment of property taxes.
Our mortgage calculator is designed to provide you with accurate information to make informed decisions about your Tennessee home purchase. However, it's always recommended to consult with a mortgage professional to understand the specific regulations and disclosures that apply to your situation.
Tennessee Mortgage Calculator FAQs
Tennessee's average effective property tax rate is 0.56%, which is relatively low. This means your escrow payments for taxes will be lower, reducing your total monthly housing costs. Residential property is assessed at 25% of appraised value.
The THDA Great Choice program offers 30-year fixed-rate mortgages with competitive interest rates and up to $6,000 in down payment assistance for eligible buyers. Income limits and home price caps apply.
Yes, cities like Memphis and Knoxville offer more affordable housing compared to Nashville. Memphis's median home price is around $220,000-$250,000, while Knoxville's is $280,000-$310,000. Use our calculator to compare payments across different markets.
Without state income tax, Tennessee residents keep more of their earnings, potentially increasing their mortgage qualification amount. Lenders consider your ability to pay based on gross and net income ratios.
Tennessee closing costs typically range from 2-4% of the purchase price. The state charges a transfer tax of $0.37 per $100 of the sale price, split between buyer and seller. Additional costs include title insurance and recording fees.
Tennessee Mortgage Resources
Ready to Buy a Home in Tennessee?
Get a personalized mortgage quote from NMHL. Our Tennessee-licensed loan officers are ready to help you find the best rate.