TENNESSEE MORTGAGE CALCULATOR
Calculate your mortgage payment in Tennessee
Monthly payments calculator
Today’s Rate
- 6.125%
- Rate
- 6.613%
- APR
- Principal & Interest
- $895.95
- Taxes
- $315.00
- Insurance
- $131.67
- PMI
- $0
Total Payment $1,342.62
Renting vs Owning calculator
Your cost breakdown
- Renting
- $143,601
- Buying
- $122,083
If you stay in your home for 8 years, renting is cheaper than buyingbuying is cheaper than renting. You’ll save $163 per month and in total.
Potential savings calculator
Owning
- $2000
- Monthly Payment
- 6.125%
- Rate
- 6.551%
- APR
Others’ average
- $2400
- Monthly Payment
- 6.818%
- Rate
- 7.292%
- APR
Your Potential Savings1
$400
Calculate how much more you can afford
Loan Amount
Potentially how much more home you get
$38,076
How is a mortgage payment in Tennessee calculated?
Credit Score
Your credit score is the key to securing a favorable mortgage rate. Demonstrating your prowess in managing credit not only brands you as a low-risk borrower in the eyes of lenders but can also reward you with significantly lower interest rates. Imagine the savings and the satisfaction. Isn’t that an opportunity worth striving for?
Loan-to-Value (LTV) Ratio
LTV ratio compares the amount of money borrowed to the market price of the asset. A lower LTV means more than a large down payment. It opens the door to better mortgage rates. By understanding how LTV works, you can improve your mortgage terms and potentially get a more affordable monthly payment for your new home in Tennessee.
Down Payment
Making a larger down payment on a home in Tennessee demonstrates your financial stability and commitment, potentially securing a lower interest rate. This strategy signals your seriousness to lenders, lowering the total loan costs. Seize this opportunity to show fiscal responsibility and save money.
Debt-to-Income (DTI) Ratio
Lenders also look at your DTI ratio. Debt-to-income ratio is how they compare how much you owe in debt each month to what you make before taxes. A lower ratio can mean that you’re in a better financial spot and could help you get a better rate on your mortgage.
Loan Type and Term
Choosing the right loan type and terms is key as it affects your interest rate. A 30-year fixed-rate mortgage offers lower monthly payments, easing the path to homeownership. Alternatively, a 15-year fixed-rate mortgage can lead to owning your home in half the time and saving significantly on interest, but comes with much higher monthly payments that an 30-year, fixed-rate mortgage.
Economic Factors
Understanding how indicators like inflation, unemployment, and overall economic health influence mortgage rates is crucial. Recognizing how these elements impact rates helps make informed mortgage decisions, as they significantly determine borrowing costs.
Market Conditions
Mortgage rates aren’t set in stone. They can go up or down based on how many people want to buy houses and what’s happening in the bond market. When lots of people want mortgages, the rates might go up. But if fewer people are looking to buy, then the rates could drop.
Loan Amount
If you borrow a bigger amount, the interest rate might be higher. That’s because the lender is taking on more risk.
Type of Property
The kind of property you’re planning to buy, like a home, an investment property, or a condo, can change the mortgage rate you get.
Points or Fees
Reduce your interest rates by buying discount points upfront, saving money over your loan’s life. Opting for slightly higher fees now can lower your rates further, improving your loan terms and benefiting your financial future.
Credit Market Conditions
Understand how lenders’ access to credit and the availability of mortgage funds impact rates to confidently secure the best possible mortgage for your new home.
Get pre-approved today
Getting pre-approved before shopping for a house helps you understand your budget, strengthens your offer, and
expedites the buying process
HOW MUCH ARE PROPERTY TAXES IN TENNESSEE COUNTIES?
Hey, did you know one of the good things about moving to Tennessee is they don’t have a state property tax? However, they do have property tax, but they vary depending on the municipality you call home.
The local government announces the property tax rates for every area. Just remember, these assessed values might update frequently, so what you end up paying could be a bit different from what is in the table.
| County | Median home range* | Average Property Tax | Median Annual Property Tax Cost |
|---|---|---|---|
| Shelby County | $252,730 | 1.25% | $3,159 |
| Davidson County | $449,900 | 0.67% | $3,014 |
| Knox County | $332,750 | 0.59% | $1,963 |
| Hamilton County | $337,160 | 0.80% | $2,697 |
| Rutherford County | $400,640 | 0.59% | $2,364 |
| Williamson County | $766,710 | 0.52% | $3,984 |
| Montgomery County | $291,570 | 0.80% | $2,333 |
| Sumner County | $409,130 | 0.61% | $2,496 |
| Wilson County | $452,080 | 0.52% | $2,351 |
| Sullivan County | $228,980 | 0.69% | $1,580 |
How much does homeowners insurance cost in Tennessee
A variety of factors influence the cost of homeowners insurance in Tennessee, just like other states. Whether you live in one of the major cities or in the mountains, there are multiple aspects of your home that impact your homeowners insurance payment.
These factors help insurers assess the risk associated with your home and determine the price you pay for coverage. Below are some key factors that go into determining the cost of homeowners insurance in Tennessee.
Location
Selecting a home location in Tennessee can greatly affect. insurance costs. Living in areas with high risk of natural disasters like floods, tornadoes, or wildfires leads to higher premiums. Choosing safer locations can result in significant insurance savings, making the decision a key consideration.
Dwelling Coverage
Selecting the right dwelling coverage for your Tennessee home is vital for your financial health. It’s crucial to choose a policy that covers the full cost of rebuilding your home if it’s destroyed, protecting your future and peace of mind by preparing for any potential misfortune.
Property Value
When figuring out how much you’ll pay for insurance, insurers consider the total worth of your home in Tennessee. This includes the land itself and any upgrades you’ve made to it.
Home Features & Construction
Learn how your home’s age, building materials, and construction methods can affect your insurance rates in Tennessee, as homes with specific features might be more prone to damage or expensive to fix, impacting your insurance expenses.
Coverage Limits
Choosing the right personal property and liability coverage can significantly lower your insurance costs while ensuring adequate protection. By customizing your policy to fit your needs and budget, you can maintain security without overspending.
Deductible Amount
Opting for a higher insurance deductible can substantially reduce your monthly premiums. Though it requires paying more out-of-pocket for claims, this strategy offers notable long-term savings, enhancing financial planning efficiency.
Claims History
Understanding that your past large insurance claims significantly impact your current premiums is crucial. Multiple big claims can result in higher rates.
Security & Safety Features
Boost your home’s safety and cut insurance costs by installing advanced security systems, smoke detectors, and fire alarms. This investment not only increases protection for your home and loved ones but also provides significant insurance discounts.
Tornadoes & Storms
In Tennessee, additional insurance for natural disasters like severe storms or tornadoes are often necessary for homeowners. This state’s weather can be unpredictable, with sudden storms occurring often.
startING a mortgage application in Tennessee?
Ready to move to Tennessee? Start with a mortgage pre-approval to show sellers and agents you’re serious and find out how much you can borrow.
Check out the current mortgage rates and apply today!