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Buying a home in Tennessee is exciting, especially if you are looking at a higher-end property. If this is the case, then a jumbo loan could be a great fit. Our Tennessee jumbo loan calculator can help you estimate your potential monthly payment and total costs. This article will help you understand jumbo loans in Tennessee, how jumbo loans differ from conforming loans, and how to use our jumbo loan calculator most effectively to meet your budget and financial goals.
Key Points
• A jumbo loan exceeds the conforming loan limit set by the Federal Housing Finance Agency (FHFA). For 2026, the conforming loan limit in most counties in Tennessee is $832,750. Fourteen high-cost counties have a conforming loan limit of $1,029,250.
• Qualifying for a jumbo loan often requires having a credit score of at least 700, plus cash reserves.
• A jumbo loan calculator helps homebuyers estimate the monthly payments, total interest, and overall costs of a jumbo mortgage.
• The Tennessee jumbo mortgage calculator includes property tax, but not homeowners insurance or homeowners association (HOA) fees.
Tennessee Jumbo Loan Calculator
Calculator Definitions
• Jumbo loan: A jumbo loan is a mortgage exceeding the conforming loan limits set by the Federal Housing Finance Agency (FHFA). If you need a loan for more than the conforming loan limit, then you’re in the market for a jumbo loan.
• Home price: The home price is the purchase price you’ve agreed upon with the home seller. This figure helps determine the size of your home loan and the overall cost of homeownership over time.
• Down payment: The down payment is the initial amount paid upfront. Jumbo loan requirements can be more strict, and you’ll typically need to put down at least 10% of the home price for this type of mortgage loan.
• Loan term: The loan term is the length of time you have to repay the mortgage, typically from 10 to 30 years. A longer term lowers monthly payments but increases total interest paid while a shorter term saves on interest but increases monthly payments.
• Interest rate: The interest rate is the cost of borrowing, expressed as a percentage of the loan amount.
• Annual property tax: Property tax is levied by local governments on land and buildings, based on the assessed value.
A Tennessee jumbo loan calculator estimates your monthly mortgage payment, total interest paid, and overall cost. Here’s how to use the calculator:
Step 1: Enter Your Home Price
Type in (or use the slider) the home price you see listed on your contract.
Step 2: Enter Your Down Payment Amount
Identify how much you will pay for a down payment. A down payment of at least 10% is generally required for jumbo loans.
Step 3: Select a Loan Term
Select a loan term based on your financial goals and how long you plan to stay in the home. A 30-year term offers lower monthly payments, while a shorter term saves on interest.
Step 4: Enter Your Interest Rate
Enter your interest rate to the second or third decimal point. The interest rate significantly affects your monthly payment and total interest paid.
Step 5: Enter Your Property Tax Rate
Input your property tax rate as a percentage. The average rate in Tennessee is 0.58%.
What Are Jumbo Loans and Conforming Loan Limits?
Before you apply for a larger-sized mortgage, you will want to learn what a jumbo loan is. A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). For most counties in Tennessee in 2025, the conforming loan limit for a single-family home is $832,750. The following counties are considered high-cost areas with a conforming loan limit of $1,029,250: Cannon, Cheatham, Davidson, Dickson, Hickman, Macon, Maury, Robertson, Rutherford, Smith, Sumner, Trousdale, Williamson, and Wilson. For a loan amount above these limits, you will need a jumbo loan.
There are a variety of pros and cons of jumbo loans. On the pro side, a jumbo loan allows you to make a higher-priced purchase — whether it’s a vacation property or dream home — if you meet the qualifications. For the cons, a jumbo loan typically has more stringent qualifications, and fewer lenders offer jumbo loans.
Jumbo loan requirements include having a credit score of at least 700 and some lenders like to see 720 or even higher. You’ll also be asked to document your cash reserves. Lenders also typically require a down payment of 10% or more, whereas a conforming loan might in some cases have a down payment of just 3%.
The Tennessee jumbo loan mortgage calculator offers many benefits, especially for first-time homebuyers. It can help you budget by providing an estimate of your monthly mortgage payment, including principal, interest, and property taxes.
Additionally, you can use the calculator to compare offers from multiple lenders. That way you can make an informed decision and find the loan that best serves your needs. This tool also shows how minor changes in interest rates can affect your payments so you can plan for different scenarios.
How to Use the Jumbo Loan Calculator to Compare Scenarios
Use the Tennessee jumbo loan calculator to compare loan scenarios that meet your budget and financial goals. Here are some things you can do:
• Adjust the home price to see how different prices affect your payment.
• Change your down payment. A larger down payment can improve loan terms and reduce monthly payments.
• Explore shorter loan terms to save on interest (this will mean higher monthly payments).
• Use the calculator to evaluate how minor rate changes could affect a jumbo loan.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Deciding How Much House You Can Afford in Tennessee
To help you determine how much house you can afford, consider the 28% rule: Lenders recommend your housing costs not exceed 28% of your gross monthly income. Let’s say you are considering purchasing a $1 million home in Tennessee, putting down a 10% down payment ($100,000) on a 30-year mortgage at 6.75% interest. Your monthly payment would be approximately $5,837, excluding taxes and insurance. You would need to earn an annual income of around $250,000, assuming no other debts.
Another rule of thumb lenders suggest is that your total debt payments be less than 36% of your gross monthly income; your other debt shouldn’t exceed about $1,600 monthly in this case. If you want to factor in other debts, such as a car loan, student loan, or credit card payment, you can use a home affordability calculator.
Finally, to help you determine affordability, you can go through the mortgage preapproval process with a lender, where you provide detailed financial information. The lender will let you know whether you qualify for a loan and, if so, in what amount and under what terms.
Even though there are different types of mortgage loans, the fundamental elements of any mortgage payment are: the principal and interest. Other components to keep in mind are property tax (which our calculator includes) as well as homeowners insurance and homeowners association (HOA) fees.
Understanding how these costs factor into your payment provides a clearer view of your overall financial commitment and the true costs of owning a home.
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.
Cost of Living in Tennessee
As you pursue your new home in Tennessee, you will want to research the cost of living to get a sense of how far your dollar goes. Places with a lower cost of living typically have more affordable home prices, along with lower expenses for necessities like utilities, maintenance, and transportation.
With a cost of living index of 90.3, Tennessee is about 10% more economical than the national average. Housing costs are very affordable at 83.0, as are utilities at 87.7.
Tips on Reducing Your Jumbo Loan Payment
Reducing your monthly mortgage payment is achievable. Here are some tips:
• Shop for a lower homeowners insurance rate. Compare quotes from different providers to potentially save hundreds of dollars each year, reducing your overall housing costs.
• Extend the term of your loan to reduce monthly payments, though this increases the total interest you’ll pay.
• If you face financial hardship in the future, talk to your lender about a loan modification.
• If interest rates drop, consider a mortgage refinance; just remember that to refinance a jumbo loan requires that you pay closing costs again.
The Takeaway
A jumbo loan can offer the flexibility some homebuyers need to finance a pricier property. Using our Tennessee jumbo loan calculator is a smart way to help you estimate monthly payments and to understand how your down payment amount, loan term, and interest rate will affect your financial obligations.
When you’re ready to take the next step, consider what SoFi Home Loans have to offer. Jumbo loans are offered with competitive interest rates, no private mortgage insurance, and down payments as low as 10%.
SoFi Mortgages: We make mortgage loan applications smart and simple.
Yes, a $900,000 mortgage is typically classified as a jumbo loan in most parts of the U.S. In 2026, the conforming loan limit for a single-family home is $832,750. This limit is higher in designated high-cost areas.
How much are closing costs on a jumbo loan?
Closing costs for a jumbo loan in Tennessee typically range from 2% to 5% of the property’s price. For a $1 million home, this could be between $20,000 to $50,000 and include appraisal fees, title insurance, attorney fees, and underwriting fees.
What credit score is needed for a jumbo loan?
A credit score of 700 or higher is required to secure a jumbo loan (it’s 620 for a conventional conforming mortgage), although some lenders prefer to see 720 or even higher scores. Jumbo loans have stricter criteria, including a low debt-to-income ratio and significant cash reserves.
How can I get the best rate on a jumbo loan?
To secure the best rate on a jumbo loan, comparison shop for offers from multiple lenders. Monitor your credit score and work on reducing your debt-to-income ratio by paying down debts and increasing the size of your down payment. Use a jumbo loan calculator to see how different rates affect monthly payments and total interest paid.
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*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.
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.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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