TENNESSEE MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Tennessee.
Current mortgage refinance rates in
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Tennessee.
Key Points
• Refinancing your mortgage can reduce your monthly payments or save you money on interest in the long run, especially if the current rates are in your favor.
• You can choose from a fixed-rate mortgage to an adjustable-rate mortgage (ARM). ARMs can offer lower initial rates, making them a good choice if you plan to move before the rate adjusts, potentially providing short-term financial relief.
• Refinancing to a 15-year mortgage in Tennessee can significantly reduce the total interest paid over the life of the loan, despite higher monthly payments.
• Higher credit scores typically secure more favorable refinance rates. Maintaining good credit can lead to significant savings over the life of the loan.
• To get the best available mortgage refinance rate in Tennessee, build your good credit score, maintain a low debt-to-income ratio, and compare offers from different lenders.
Introduction to Mortgage Refinance Rates
Mortgage refinance rates play a crucial role in your decision to refinance your home. By swapping out your current mortgage for a new one, you might snag more favorable terms or a lower interest rate.
The refinance path you pick should align with your financial aspirations, whether that’s reducing your monthly payments, cutting down your loan term, or tapping into your home’s equity. This guide is your go-to for unraveling how mortgage refinance rates in Tennessee are set and how to lock in the best one for you.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Where Do Mortgage Refinance Interest Rates Come From?
Mortgage refinance rates are influenced by both economic factors and your personal financial situation. Economic factors that can impact your Tennessee refinance rate include Federal Reserve policy, inflation, the bond market, and housing inventory levels. Generally speaking, high inflation and rising federal funds rates can lead to higher mortgage refinance rates, while rising bond prices can lead to lower rates.
On the personal side, a borrower’s credit score significantly affects refinance rates, as higher scores often lead to better terms. Debt-to-income (DTI) ratio also matters, with lower DTI ratios signaling to lenders that the borrower can manage their financial obligations. Loan-to-value (LTV) ratio plays a role as well, with more home equity reducing lender risk and potentially lowering interest rates.
By understanding these factors, you can better anticipate rate movements and make an informed decision about when to refinance your mortgage.
How Interest Rates Affect Home Affordability
Your mortgage refinance rate is a key player in the financial game, impacting both your monthly payment and the overall cost of your loan. Let’s look at an example:
With a $200,000 loan at a 6.00% interest rate over 30 years, you’d be looking at a monthly payment of $1,199. But if the interest rate were to jump to 8.00%, that monthly payment would swell to $1,467. Over time, that seemingly small 2% difference in interest could add up to nearly $100,000 in savings. It’s a big deal, and it’s why we’re here to help you get the best rate possible.
Here’s a closer look at how different interest rates and loan terms affect payments and total interest paid on a $200,000 loan:
| Interest Rate | Monthly Payment | Total Interest |
|---|---|---|
| 6.00% | $1,199 | $231,677 |
| 6.50% | $1,264 | $255,085 |
| 7.00% | $1,330 | $279,021 |
| 7.50% | $1,398 | $303,403 |
| 8.00% | $1,467 | $328,309 |
Trends in Mortgage Interest Rates
The past few years have seen significant movement in mortgage refinance rates in Tennessee and in the U.S. The average 30-year fixed mortgage rate in the U.S. was 2.96% in 2021, and by 2023, it was up to 7.03%. As of March 2025, average rates were 6.65%.
Historical U.S. Mortgage Interest Rates
According to Freddie Mac, rates are expected to remain around current levels for the foreseeable future. With these trends in mind, it’s important to keep an eye on the market and consider refinancing if you think you could get a better rate or terms on your loan.
Historical Interest Rates in Tennessee
Tennessee has seen significant movement in mortgage refinance rates over the years, following the national trends. Below, you can compare Tennessee and U.S. rates from 2000 to 2018 — they’re similar but not identical. (The Federal Housing Finance Agency stopped compiling state averages after 2018.)
| Year | Tennessee Rate | National Rate |
|---|---|---|
| 2000 | 7.99 | 8.14 |
| 2001 | 6.95 | 7.03 |
| 2002 | 6.55 | 6.62 |
| 2003 | 5.80 | 5.83 |
| 2004 | 5.85 | 5.95 |
| 2005 | 5.96 | 6.00 |
| 2006 | 6.58 | 6.60 |
| 2007 | 6.34 | 6.44 |
| 2008 | 6.03 | 6.09 |
| 2009 | 4.95 | 5.06 |
| 2010 | 4.70 | 4.84 |
| 2011 | 4.50 | 4.66 |
| 2012 | 3.63 | 3.74 |
| 2013 | 3.82 | 3.92 |
| 2014 | 4.11 | 4.24 |
| 2015 | 3.83 | 3.91 |
| 2016 | 3.65 | 3.72 |
| 2017 | 4.01 | 4.03 |
| 2018 | 4.56 | 4.57 |
💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.
Why Refinance in Tennessee?
Refinancing your mortgage is a smart financial move, but it’s not one to be taken lightly. If the current mortgage refinance rates in Tennessee are lower than the rate you’re locked into, it’s a prime opportunity to refinance your home. This could mean a reduced monthly payment and significant savings over the loan’s lifetime.
Refinancing also gives you a chance to switch from an adjustable-rate to a fixed-rate mortgage, which can provide a more secure financial foundation. Worth noting: The rule of thumb is to have at least 20% equity in your home, especially if you’re considering a cash-out refinance.
Common Reasons to Refinance a Mortgage
Common reasons homeowners in Tennessee may want to refinance their mortgage include:
• You may be eligible for a lower mortgage refinance rate because of better credit or market conditions.
• You’re considering adjusting your repayment term to better suit your financial goals.
• You’re looking to tap into your home’s equity to cover expenses such as college tuition or home improvements.
• Your adjustable-rate mortgage is about to reset, and you want to switch to a fixed-rate loan.
• You have an FHA loan and 20% equity, and you’re eager to eliminate mortgage insurance.
• You’re looking to remove a cosigner or untangle finances from a past relationship.
How to Compare Mortgage Refi Interest Rates
Homeowners with strong credit and a low debt-to-income ratio may secure much lower rates than average.
To secure a competitive mortgage refinance rate, here’s what you need to do:
• Shop around for the best mortgage refinance rates. Compare offers from multiple lenders.
• Get prequalified to see what you’re offered in terms of loan amount, rate, and fees.
• Compare annual percentage rates (APRs), which include the interest rate and other costs.
• Crunch the numbers on the total cost and break-even point.
• Make sure the mortgage refinance costs and new payment work for you.
Choose the Right Mortgage Refi Type
The rates for mortgage refinance in Tennessee are as diverse as the options themselves. Conventional refis, often referred to as rate-and-term refis, may have different rates than those backed by the government, such as FHA, VA, and USDA loans. Below are the different types of mortgage refinance options available.
Conventional Refi
A conventional mortgage refinance involves replacing your existing mortgage with a new loan that isn’t insured or guaranteed by the government (such as FHA, VA, or USDA loans). Typically, conventional refinancing offers competitive rates and terms for borrowers with good credit and a stable financial history.
For a conventional mortgage refinance, you typically need at least 20% equity in your home. This means your current loan balance should be no more than 80% of your home’s appraised value. However, some lenders may allow refinancing with less equity, depending on your creditworthiness and other factors.
Cash-Out Refi
A cash-out refinance is a way for homeowners to access a portion of their home equity by borrowing more than the current mortgage balance. For example, if your home is worth $500,000 and you owe $300,000, you can borrow up to 80% of your home’s value, which would give you $100,000 after you pay off the existing mortgage.
You can use the lump sum from your equity to pay off high-interest debt, make home improvements, or cover other large expenses. Keep in mind that cash-out refis often come with higher refinance rates than traditional refis.
Recommended: How to Calculae Home Equity
FHA Refi
FHA refinances, insured by the Federal Housing Administration, offer the potential for lower mortgage refinance rates, sometimes as much as a full percentage point lower than conventional loans.
FHA Simple Refinances and FHA Streamline Refinances are available to homeowners with existing FHA loans. For those without an existing FHA loan, options include an FHA cash-out refinance or an FHA 203(k) refinance, which is designed for home renovations and improvements.
VA Refi
VA refinances, backed by the U.S. Department of Veterans Affairs, consistently provide some of the most competitive mortgage refinance rates available in the market.
To be eligible for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must currently hold a VA loan. This specific type of refinance can be particularly advantageous as it often results in reduced monthly payments and substantial interest savings accumulated over the duration of the loan.
15-Year Mortgage Refi
Shifting to a 15-year mortgage could be a game-changer, slashing the total interest you pay over the loan’s lifetime.
Here’s an example: Let’s say you have a 30-year, $1 million mortgage at a 7.50% interest rate. You’d be looking at a monthly payment of around $6,992 and a staggering $1,517,167 in total interest. Now, imagine refinancing to a 15-year mortgage at a 7.00% rate. Yes, the monthly payment would jump to about $8,988, but the total interest paid would plummet to roughly $617,891, freeing up nearly $900,000.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with a lower introductory mortgage refinance rate than fixed-rate loans. However, the rate can increase after the initial fixed-rate period, which can make your monthly payments increase.
If you plan on selling the home before the rate can adjust, an ARM can be a good option for you. But it’s important to understand the risks and benefits of an ARM before you decide to refinance your home loan.
Recommended: How Soon Can You Refinance a Mortgage?
How to Get the Best Available Mortgage Refi Interest Rate
Getting a competitive mortgage refinance rate in Tennessee is key to saving money over the life of your loan. Here are some steps to help you get the best rate:
• Boost your credit score: Timely bill payments and avoiding new debt can help you here.
• Lower your DTI: A debt-to-income ratio under 36% is the sweet spot for nabbing a favorable rate.
• Compare lenders: Don’t settle for the first offer. Shop around and compare interest rates and fees from multiple lenders.
• Purchase mortgage points: Consider paying for discount points to lower your interest rate.
• Opt for a shorter term: Consider a 10- or 15-year mortgage for potentially lower rates, even though monthly payments will be higher.
Online Refinance Calculators
Online refinance calculators are a great way to get a rough estimate of your potential monthly savings. They take into account your current loan balance, current mortgage refinance rate, and closing costs to help you decide if refinancing makes sense for you.
Run the numbers on your home loan.
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Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage in Tennessee can be a smart financial move, but it’s not something to jump into without doing your homework. Think about what you want to get out of a refinance, compare Tennessee refinance rates from multiple lenders, and consider your loan term and the potential impact of fees on your loan.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
Are refinance rates going to drop?
Refinance rates fluctuate based on economic conditions, Federal Reserve policies, and inflation trends. While predictions vary, rates may drop if inflation slows and the Fed eases monetary policy. However, market conditions are unpredictable, so homeowners should monitor trends and consult financial experts before making refinancing decisions.
When is it a good idea to refinance your home?
Refinancing your home is a good idea when interest rates drop, you’ve built your credit score, or you want to lower monthly payments. It also makes sense if you need to switch loan types, shorten your loan term, or tap into home equity for major expenses like renovations or debt consolidation.
Does refinancing affect your credit score?
Yes, refinancing your mortgage can affect your credit score. The lender’s hard inquiry may cause a temporary dip, and closing an old loan can impact your credit history. However, consistent, on-time payments on the new loan can help rebuild and improve your score over time.
Do I have to pay closing costs again when I refinance?
Yes, you should expect to pay closing costs when you refinance your mortgage. These costs typically run from 2% to 5% of the loan amount. It’s important to weigh these costs against the potential savings from a lower refinance mortgage rate. By doing so, you can make an informed decision about whether refinancing is the right move for you.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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How to Refinance a Home Mortgage Loan
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7 Signs It’s Time for a Mortgage Refinance