Mortgage Calculator Tennessee 2026: Payment, PMI & Transfer Tax
This mortgage calculator for Tennessee estimates your full monthly payment — principal & interest, property tax, homeowners insurance and PMI — plus the $0.37 per $100 transfer tax and mortgage tax. Enter your own rate; everything is calculated privately in your browser.
A mortgage calculator for Tennessee estimates the full monthly cost of a Tennessee home loan: principal and interest from standard amortization, plus property tax, homeowners insurance and private mortgage insurance (PMI) when you put down less than 20%. It also shows the $0.37 per $100 transfer tax and mortgage tax due at closing.
How the Mortgage Calculator Tennessee Formula Works (Worked Example)
Principal and interest use the standard amortization formula M = P × r(1+r)n ÷ ((1+r)n − 1), where P is the loan amount, r the monthly rate (annual rate ÷ 12) and n the number of payments. Property tax is the home price × your local rate ÷ 12, insurance is your annual premium ÷ 12, and PMI is the loan amount × your PMI rate ÷ 12. Example: a $330,000 Tennessee home, 10% down, 30-year fixed at a user-entered 6.5% (click Load Example above to reproduce it).
| Item | Inputs | Monthly |
|---|---|---|
| Principal & interest | $297,000 loan, 6.5%, 360 payments | $1,877.24 |
| Property tax | 0.52% of $330,000 ($1,716/yr) | $143.00 |
| Homeowners insurance | $1,700/yr (example — use your quote) | $141.67 |
| PMI | 0.6% of $297,000 ($1,782/yr) | $148.50 |
| Total monthly payment | $2,310.41 | |
| State transfer tax, buyer (grantee) (one-time) | on $330,000 | $1,221.00 |
| Mortgage tax, buyer (borrower) (one-time) | on $297,000 loan | $339.25 |
Over 30 years this loan pays about $378,810 in interest. Your rate is an input, not an assumption — check the current weekly national average in Freddie Mac’s Primary Mortgage Market Survey and compare lender Loan Estimates.
Tennessee Property Tax Rate and Your Monthly Payment
The Tax Foundation puts Tennessee’s effective property tax rate at about 0.52% of owner-occupied home value (annual property tax paid ÷ home value, from Census American Community Survey data), so the calculator defaults to 0.52%. Tennessee assesses residential property at 25% of appraised value (Tenn. Code § 67-5-801), then applies the local tax rate per $100 of assessed value. The effective rate above already reflects that ratio, so do not enter the county/city rate from your bill directly — it applies to only 25% of the value.
| Effective rate | Annual tax on $330,000 | Added to monthly payment |
|---|---|---|
| 0.39% | $1,287 | $107.25 |
| 0.52% (Tax Foundation statewide average) | $1,716 | $143.00 |
| 0.73% | $2,409 | $200.75 |
Tennessee Closing Costs: Transfer Tax and Other Fees
Tennessee levies two state recordation taxes under Tenn. Code § 67-4-409, collected by the county register of deeds. The realty transfer tax is 37 cents per $100 of the value or consideration, whichever is greater, and is paid by the grantee — normally the buyer. The mortgage (indebtedness) tax is 11.5 cents per $100 of the loan amount, with the first $2,000 exempt, and is paid by the borrower.
| Tennessee item | Amount | Usually paid by |
|---|---|---|
| Realty transfer tax (Tenn. Code § 67-4-409(a)) | $0.37 per $100 of value — $1,221 on $330,000 | Buyer (grantee) |
| Mortgage tax (Tenn. Code § 67-4-409(b)) | $0.115 per $100 of the loan, first $2,000 exempt — $339.25 on a $297,000 loan | Buyer (borrower) |
| County recording fees | Set by the county — see your Loan Estimate | Party recording the document |
| Escrow deposits for tax and insurance | Set by your lender — see your Loan Estimate | Buyer |
| Lender, appraisal and title charges | Vary by lender and title company — compare Loan Estimates | Negotiable |
Some costs are negotiable, and sellers sometimes cover part of a buyer’s closing costs as a concession.
How Tennessee Mortgage Rates Affect Your Payment
Rates in Tennessee follow national mortgage markets and vary by lender, credit score, down payment and loan type. On a $330,000 home with 20% down, an example rate of 6.9% produces a monthly principal and interest payment of about $1,739. A 0.25-point higher rate adds roughly $44 a month, so shopping several lenders can save thousands over the life of the loan.
Adjustable-rate mortgages (ARMs) often start lower but carry rate-reset risk, while a fixed rate keeps principal and interest the same for the whole term. FHA loans (3.5% down) and VA loans (0% down for eligible veterans) are alternatives to a conventional loan in Tennessee.
First-Time Buyer Programs in Tennessee
The Tennessee Housing Development Agency (THDA) offers the Great Choice Home Loan with optional down payment assistance for eligible buyers; check THDA for current income and price limits.
FHA loans are available nationwide and require 3.5% down with a 580+ credit score. USDA loans offer 0% down for eligible rural properties in Tennessee. VA loans are available to qualified veterans and active-duty service members with no down payment required and no PMI.
If your down payment is below 20%, Private Mortgage Insurance (PMI) on a $297,000 loan adds about $149/month at a 0.6% annual rate. Experian, citing the Urban Institute puts typical PMI at roughly 0.46%–1.5% of the loan per year depending on credit score, so enter your lender’s quote in the PMI field. PMI can be removed once your loan-to-value ratio reaches 80%, and extra payments get you there sooner.
Last updated: October 2026. Estimates only — confirm figures with your lender, title company and local tax office.
Frequently Asked Questions
What is the average mortgage rate in Tennessee in 2026?
Tennessee mortgage rates track national averages and change weekly. Check the Freddie Mac Primary Mortgage Market Survey for the current 30-year fixed average, then compare quotes from several lenders - your rate depends on credit score, down payment and loan type. The 6.9% default in this calculator is only an example.
What is the average monthly mortgage payment in Tennessee?
There is no single average - it depends on price, rate and local tax. As an example, a $330,000 home with 20% down at 6.9% has principal and interest of about $1,739 a month; adding 0.52% property tax and $1,700 a year for insurance gives an estimated PITI of about $2,023 a month.
Do I need PMI in Tennessee?
Usually, if your down payment on a conventional loan is less than 20%, lenders in Tennessee require Private Mortgage Insurance (PMI). The Urban Institute puts typical PMI at about 0.46%-1.5% of the loan amount per year, depending mainly on credit score. PMI can be removed once you reach 20% equity, and VA loans have no PMI.
What home price should I enter for Tennessee?
Enter the actual purchase price or list price you are considering. The $330,000 default is an example, not a statewide median - prices vary widely by city and county in Tennessee, so the payment for your home can be much higher or lower.
What is the property tax rate in Tennessee?
The Tax Foundation puts Tennessee’s effective property tax rate on owner-occupied homes at about 0.52% of home value - roughly $1,716 a year on a $330,000 home. Actual rates vary by county, city and school district, so use the rate from your own tax bill or listing.
Who pays the transfer tax in Tennessee?
In Tennessee the buyer (grantee) pays the realty transfer tax of 37 cents per $100 of value under Tenn. Code 67-4-409 - $1,221 on a $330,000 home. Buyers with a mortgage also pay the mortgage tax of 11.5 cents per $100 of the loan above $2,000, which is $339.25 on a $297,000 loan.
What is the monthly payment on a $330,000 house in Tennessee?
With 10% down and a 30-year fixed loan at 6.5%, principal and interest is about $1,877 a month. Adding 0.52% property tax ($143), $1,700 a year insurance ($142) and 0.6% PMI ($149) brings the total to about $2,310 a month.