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Your home is likely to be one of the most expensive purchases you’ll ever make, so the home-buying process can feel as stressful as it is exciting. Using this Tennessee mortgage loan calculator can make the experience easier and more efficient. With this free online tool, you can simply enter a few facts about a given loan and instantly see estimates of what you’d pay monthly and over the life of that loan, allowing you to understand the long-range implications of your choices. With this easy-to-access information, you’ll be better equipped to find the mortgage that will work best for you. Here’s how to get started.
Key Points
• Use the Tennessee mortgage loan calculator to quickly and easily estimate mortgage payments and total interest costs on different loans.
• You can generally lower your monthly mortgage payments by increasing your down payment amount or lengthening your loan term.
• Explore down payment assistance programs in Tennessee to see if they can help you reduce the upfront costs of buying a home.
• Your monthly mortgage payment includes principal and interest and in some cases homeowners insurance and property tax. If they’re applicable, private mortgage insurance (PMI) and/or homeowners association (HOA) fees might also be included.
• Lenders typically want homebuyers to spend no more than 28% of their gross monthly income on monthly mortgage payments.
Tennessee Mortgage Calculator
Calculator Definitions
• Home price: This is the purchase price you and the home seller have agreed upon after negotiating. It’s likely to differ from the original listing price and from your initial offer.
• Down payment: This is the lump sum that you’ll pay upfront for the property, generally expressed as a percentage of the home price. A larger down payment can potentially lead to more favorable loan offers and let you avoid private mortgage insurance (PMI). Down payment assistance programs for first-time homebuyers and others may help cover this cost.
• Loan term: This is the length of time you have to repay the mortgage, most often 15 or 30 years. A 30-year term offers lower monthly payments, while a 15-year term can save you money on total interest but costs more per month.
• Interest rate: This is the cost of borrowing money, expressed as a percentage of the loan amount. A higher interest rate can significantly increase your monthly payments and the total cost of your home loan, while a lower rate can potentially save you thousands over the life of the mortgage.
• Annual property tax: Property tax is levied by local governments on both land and the buildings situated on it and is generally expressed as a percentage of a property’s assessed value. To find the local tax rate where you’re buying a home, search online for the town, county, or ZIP code where the property is located and “effective property tax rate.”
• Monthly payment: This is the amount you will pay your lender each month. The monthly payment shown by the Tennessee calculator includes what you would pay toward the principal and interest each month, with property tax factored in if you have entered a tax rate. Additional costs like homeowners insurance, PMI, and HOA fees may also be included by some lenders.
• Total interest paid: This is the amount you will pay in interest over the entire life of the loan. This figure is influenced by the interest rate, the loan term, and the principal amount.
• Total loan cost: This is the entire amount that you will repay for your home loan, including the principal and all the interest.
How to Use the Tennessee Mortgage Calculator
This free tool helps you estimate mortgage payments without affecting your credit score.
Step 1: Enter Your Home Price
Input the agreed-upon sales price of the property.
Select your loan repayment period, typically 15 or 30 years.
Step 4: Enter an Interest Rate
Specify the interest rate, even to the second or third decimal. For expensive properties, check jumbo loan rates.
Step 5: Add Your Annual Property Tax
Enter the annual property tax as a percentage (e.g., 0.49 for 0.49%).
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator helps determine home and loan affordability. The Tennessee mortgage calculator estimates monthly payments and total interest based on your input (loan amount, down payment, interest rate, term, and tax rate). You can adjust variables to see their impact on affordability, which is crucial for finding the best deal.
This calculator is designed for fixed-rate mortgages. For variable interest rate loans, it can still estimate costs, but results will be less precise due to rate fluctuations.
As of late 2025, the median home sales price in Tennessee is about $394,000. With a 20% down payment and a 30-year mortgage at 7.00% interest, the principal and interest payment would be roughly $2,100 monthly.
The 28/36 rule suggests spending no more than 28% of gross monthly income on mortgage payments and 36% on total debt. For the median home, this requires at least $90,000 annual income, leaving about $600 for other monthly debts. Remember to factor in property tax and homeowners insurance.
Your monthly mortgage payment goes toward covering several costs. Primarily, it will be applied to your principal (the amount you borrowed) and interest. The payment could also include property tax and homeowners insurance expenses, depending on the terms of your loan. If you have less than 20% equity and need to pay for PMI or if you are being charged HOA fees, those costs might also be bundled into your payment.
Just what your mortgage payment includes is also affected by the type of mortgage loan you take out, and specialized calculators can be helpful here. If you’re applying for an FHA loan — guaranteed by the Federal Housing Administration (FHA) — you can use an FHA mortgage calculator, which allows for that loan’s mortgage insurance premiums. Similarly, a VA mortgage calculator can take into account relevant fees when you’re considering a loan backed by the U.S. Department of Veterans Affairs.
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:
Cost of Living in Tennessee
The cost of living in your area can significantly affect how much you can afford to spend on a home, and if you’re looking in Tennessee, you’re in luck. With a cost of living 9.7% below the national average, Tennessee could be considered one of the best affordable places in the U.S. That said, some areas in Tennessee have a higher cost of living than others, and that can affect not only house prices but also expenses like utilities, maintenance, and transportation, among other necessities.
The Council for Community and Economic Research’s Cost of Living Index (COLI) compares the cost of living in major metro areas against the national average, which is 100. As you can see from the chart below, although the cost of living varies among cities in Tennessee, it’s generally still below the national average.
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.
Once you’ve explored your mortgage costs with the Tennessee mortgage calculator, you might still want to trim a little off your monthly payments. Depending on your situation, the following tips may help.
• Consider a larger down payment. Paying a larger lump sum upfront may mean you can bypass PMI as well as help you secure more favorable loan terms.
• Improve your credit score. A higher score may let you qualify for more competitive interest rates, which can mean lower payments.
• Shop around for favorable rates. Different lenders may offer different interest rates and terms, so it pays to research your options.
• Explore down payment assistance programs. If you haven’t owned a home during the past three years, you may qualify as a first-time homebuyer for one of these programs, which can help you afford your down payment and lower your monthly payments.
• Appeal a high property tax assessment. If your assessed house value seems too high, you can appeal to your tax authority.
• Reduce your homeowners insurance costs. Try raising your deductible, bundling policies to get a discount, or checking with other insurers to see if you can find a better price.
• Look into a mortgage refinance. If you have a mortgage currently and a refi would lower your rate or extend your term, refinancing could potentially lower your monthly payments.
If you’re buying your first home, there are programs available to help you find affordable loans and cover the initial costs. It’s easier to qualify as a first-time homebuyer than you might think: Usually, you’ll be eligible as long as you haven’t owned a primary residence within the last three years.
The Tennessee Housing Development Agency (THDA) offers various homeownership financial assistance options, including assistance with down payments and closing costs, to help first-time buyers. If you’re an active military service member, a veteran, a law enforcement officer, an EMT, a paramedic, or a firefighter, you might be eligible for a reduced-rate loan with the Homeownership for Heroes program. Some cities also offer programs to make homeownership more accessible.
The Takeaway
Our Tennessee mortgage calculator is an indispensable tool for prospective homebuyers in the state, providing estimates of monthly mortgage payments and total interest costs for the loans you specify. Whether you’re a first-time buyer or a seasoned homeowner, using a mortgage calculator to understand the full financial impact of your decisions can help you make smart, sustainable choices as you plan for the future.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
How does my credit score affect my mortgage loan interest rate?
A higher credit score generally qualifies you for better interest rates and more favorable loan terms. Conversely, a lower score may result in higher interest rates, making the loan more expensive.
How much should I put down on a mortgage?
A 20% down payment can help you avoid private mortgage insurance (PMI) and secure better loan terms. However, some homebuyers pay as little as 3% on a conventional loan.
How can I get a lower mortgage interest rate?
To get a lower mortgage rate, you can try to improve your credit score, put down a larger down payment, or shop around to find another lender who may offer more generous terms.
Can I afford a $300K house on a $70K salary?
If you’re able to put down a 20% down payment and finance the rest over 30 years at 7.00%, according to the 28/36 rule, you can afford a $300,000 house on a $70,000 annual income — as long as you don’t have other significant debts. The rule says that your monthly mortgage payments should not exceed 28% of your salary, and this loan’s $1,597 payment is almost 28%.
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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.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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.
