Mortgage Calculator in Tennessee

Calculate your monthly mortgage payment in Tennessee using the 2026 median home price of $393K and current local rates. Adjust the inputs below. Formula shown, sources cited — no account required.

Tennessee's housing market has run hot over the past several years, pushing the median home price to $393,000 even as the state's cost-of-living index sits at 90.1 — below the national baseline. Nashville, Knoxville, and Chattanooga have drawn significant migration, tightening inventory and keeping sellers in control in most markets. One of the most buyer-friendly features of Tennessee ownership is a property tax rate of just 0.71%, one of the lowest in the country. On a $393,000 home, that amounts to roughly $233 per month in property taxes, meaningfully lower than what buyers in Texas or Wisconsin would face at the same price. The state charges no deed transfer tax at the state level, though some counties levy their own fees. First-time buyers should explore the Great Choice Home Loan and Great Choice Plus Down Payment programs, both administered by THDA. Run the numbers through a mortgage calculator using Tennessee's 6.51% average rate to see your full monthly payment before you make an offer.

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Tennessee Housing Market at a Glance (2026)

$393K

Median Home Price

6.51%

Avg Mortgage Rate

0.71%

Property Tax Rate

10%

Typical Down Payment

Buying a Home in Tennessee: Costs to Know

Average closing costs1.5% of purchase price

On a $393K home, closing costs â‰ˆ$5,895

Median household income$71,997/yr

State income tax (top rate)None

First-Time Buyer Programs in Tennessee

Tennessee offers state-sponsored programs that can reduce your down payment or closing costs:

✓Great Choice Home Loan
✓Great Choice Plus Down Payment

Buying a Home in Tennessee: No Income Tax Advantage

A standard mortgage payment in Tennessee is calculated using the amortization formula:M = P[r(1+r)^n] / [(1+r)^n - 1]

Where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. On a $393K home in Tennessee with a 10% down payment at 6.51% over 30 years, your principal and interest payment comes to approximately $2,238/month— not including property taxes or homeowner's insurance.

Tennessee's property tax rate of 0.71% adds roughly $233/month to your total housing cost on a $393K home. This rate is below the national average of ~1.1%, which helps keep total housing costs lower.

Tennessee vs. National Average

Metric	Tennessee	National Avg
Median Home Price	$393,000	$420,000
Property Tax Rate	0.71%	1.07%
Avg Mortgage Rate	6.51%	6.85%
Cost of Living Index	90.1	100

Questions You Might Ask — Mortgage Calculator in Tennessee

What is the average mortgage payment in Tennessee?

Based on the median home price of $393K in Tennessee with a 10% down payment and 6.51% rate (30-year fixed), the estimated monthly principal and interest payment is approximately $2,238. Adding property taxes (~$233/mo) and homeowner's insurance, total PITI is typically $2,621–$2,721/month.

What is the property tax rate in Tennessee?

Tennessee has an average effective property tax rate of 0.71%. On the median home price of $393K, that equals roughly $2,790 per year — or $233 added to your monthly mortgage payment. This is below the national average of ~1.1%, which helps lower total housing costs in Tennessee.

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

The typical down payment in Tennessee is 10% — about $39,300 on the median $393K home. Conventional loans require as little as 3% down; FHA loans allow 3.5%. First-time buyers may also qualify for assistance through programs like Great Choice Home Loan.

What are closing costs in Tennessee?

Average closing costs in Tennessee are approximately 1.5% of the purchase price — about $5,895 on the median $393K home. Closing costs include lender origination fees, title insurance, escrow, prepaid interest, and government recording fees.

What income do I need to afford the median home in Tennessee?

To afford the $393K median home in Tennessee under the 28% housing-cost rule, you need a gross monthly income of at least $9,361 — roughly $112K/year. The median household income in Tennessee is $71,997.

Data Sources & Methodology

State data sourced from the National Association of Realtors (median home prices), Tax Foundation (property tax rates, income tax), Freddie Mac PMMS (mortgage rates), ATTOM Data Solutions (closing costs), and U.S. Census Bureau ACS (household income). Last updated 2026.