Tennessee Refinance Rates & Programs 2026

Tennessee offers affordable housing, no state income tax, and low refinancing costs. From Nashville to Memphis and Knoxville, here's what you need to know about refinancing in the Volunteer State.

Current Tennessee Refinance Rates

| Loan Type | Average Rate | |-----------|--------------| | 30-Year Fixed | 6.22% | | 15-Year Fixed | 5.54% | | FHA 30-Year | 6.17% | | VA 30-Year | 5.50% |

Nashville metro has seen strong appreciation. Use our refinance calculator.

Tennessee-Specific Programs

Tennessee Housing Development Agency (THDA)

• Great Choice down payment assistance
• If you used THDA assistance, check subordination before refinancing
• Mortgage Credit Certificates available

USDA Refinancing

Rural TN counties qualify for USDA loans outside Nashville, Memphis, Knoxville, and Chattanooga.

VA Loans

Arnold AFB, Naval Support Activity Mid-South. VA IRRRL available.

Cost of Refinancing

Low costs:

| Cost Item | Typical Amount | |-----------|---------------| | Origination | $0 - $2,000 | | Appraisal | $400 - $550 | | Title | $600 - $1,000 | | Recording | $30 - $60 | | Total | $3,000 - $6,000 |

No state mortgage tax.

When to Refinance

Refinance if rates dropped 0.75%+, eliminate PMI, or consolidate debt. See cash-out guide.

FAQ

How long? 30-40 days. Property taxes change? No. Credit score? 580 FHA, 620 conv, 740+ best. Keep THDA MCC? Yes, with participating lender.

Bottom Line

TN's low costs and lack of state income tax make refinancing attractive when rates drop 0.75%+.

Get quote: See rates.

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Author: Bill McCoy, 15 years experience.