What’s the average mortgage payment in Tennessee?

According to data from Redfin and Rocket Mortgage, the average monthly mortgage payment in Tennessee is roughly $1,636 before property taxes and insurance. This falls slightly below the national average of $2,010 per month.

From bustling cities like Nashville and Memphis to quieter suburban and rural areas, Tennessee offers a wide range of housing options. Its dynamic economy and relatively affordable home prices make it a state that attracts buyers looking for a balance between cost, lifestyle, and opportunity.

A brief look into Tennessee’s housing market

As of October 2025, the median home sale price in Tennessee is $404,600. While this number is up 4.4% over the last year, Tennessee home prices are still lower on average than the national median of almost $440,000.

Here’s some of the recent median sale prices from Redfin:

Average median home sale price can vary widely depending on where you’re looking. If you’re thinking of moving to Tennessee, consider using online tools like the Rocket Mortgage home affordability calculator to see which areas best fit your budget. 

What influences mortgage payments in Tennessee?

Monthly mortgage payments are made up of principal, interest, taxes, and insurance (PITI). Each of these can vary depending on the home, loan type, and location. The Rocket Mortgage^® mortgage calculator can help break these factors down so you can see exactly how each affects your monthly payment. 

Home price and down payment

The price of a home and the size of your down payment directly affect your monthly mortgage payment. A higher down payment on a home at any price will lower the amount you’ll have to pay per month. The average down payment amount is around 20% of the home price. Making a lower down payment can make buying more accessible upfront, but may require private mortgage insurance (PMI), which can increase your monthly payments. 

Since Tennessee home prices are generally below the national median, buyers often start with smaller loan balances. For example, a 20% down payment on a $404,600 with a 30-year fixed mortgage at 6.5% could result in a principal and interest payment of about $2,046 per month, before taxes and insurance.

Mortgage rate

The amount of interest you pay in addition to your loan principal is your mortgage rate. Rates are influenced by credit score, down payment size, loan type, debt-to-income ratio (DTI), and current market rates. Even small shifts in market rates can significantly affect your monthly payment, so monitoring them can help you plan effectively. 

Loan term

Your loan term, or length of your mortgage, also plays a role in monthly affordability. Choosing between a 30-year fixed mortgage and a 15-year fixed mortgage depends on your financial situation and long-term goals. A longer term will spread the total cost of the loan out more over time, keeping your monthly costs low, but increasing your total interest paid. A shorter term increases monthly costs, but also accrues equity quickly and reduces the amount of interest you will have to pay. 

Property taxes and insurance

Tennessee has relatively low property taxes at an average rate of 0.55%. On a median valued home at $256,800, the annual property tax is roughly $1,400. This could add about $117 per month to your mortgage payment, but this estimate varies depending on your home’s value. 

According to Insurify, homeowners insurance costs in Tennessee come out to an annual average of about $2,844. This number is a little bit higher than the national average, but keep in mind that premiums depend on several factors. For example, some areas of Tennessee are prone to flooding. Buying a house in a flood zone may increase premiums or require additional flood insurance. 

Tennessee’s mortgage payments compared to other states

Despite some areas with higher priced homes, Tennessee’s average monthly mortgage payments generally fall below the national average. Coastal and high-cost states typically see significantly higher payments, while Tennessee buyers enjoy affordability combined with access to growing urban centers.

Tennessee’s neighbors largely fall within a $100 difference in average monthly mortgage payment, the only outliers being Virginia and North Carolina which have more expensive estimates:

Highest monthly payments in Tennessee

The highest estimated mortgage payments are generally found in fast-growing urban counties and areas near major cities such as Nashville, Memphis, and Chattanooga. According to Q1 2025 median sale prices from the National Association of REALTORS^®, these are the five highest average monthly mortgage payments in Tennessee:

Lowest monthly payments in Tennessee 

Lower-cost areas, often in rural counties or smaller towns, tend to have the lowest estimated mortgage payments, sometimes well below the statewide average:

How to calculate your mortgage payment

Mortgage payments are calculated based on your loan amount, interest rate, and loan term. You can explore how changes in these factors affect your monthly payment with the Rocket Mortgage online mortgage calculator. It helps buyers understand affordability, compare different loan scenarios, and plan for long-term costs.

Mortgage resources in Tennessee

If you’re looking at buying a home in Tennessee, there are a number of programs for first-time home buyers to look into on Redfin. The following are other local resources that could work for your situation: 

• Tennessee Housing Development Agency (THDA) Great Choice Home Loan: A 30-year fixed-rate mortgage program for Tennesseans of middle-to-moderate income that offers competitive rates and down payment assistance.

• THDA Great Choice Plus: Offered alongside the Great Choice Home Loan, this program provides eligible buyers with either a forgivable deferred second mortgage or an amortizing second mortgage to help cover down payment/closing costs.

• THDA Homeownership for Heroes: A special mortgage benefit for active and retired military members, firefighters, EMTs and paramedics, and law enforcement that includes reduced interest rates on qualified 30-year fixed loans and access to the Great Choice Plus assistance options.

• The Housing Fund Down Payment Assistance: A nonprofit partner program offering down payment and closing cost assistance loans through approved lenders across Tennessee to help buyers cover upfront home purchase costs.

FAQs on the average monthly mortgage payment in Tennessee

Have more questions about the average monthly mortgage payment in Tennessee? We have answers! 

What is a good mortgage payment in Tennessee right now?

Because Tennessee home prices are generally moderate, many buyers find monthly payments below the national average. Since a “good” mortgage rate is highly subjective, using Rocket Mortgage’s home affordability calculator can help you determine a price range that works for your financial situation.

What’s the difference between a 15-year vs. 30-year mortgage in Tennessee?

A 30-year mortgage typically has a lower monthly payment by spreading the loan over a longer period, while a 15-year mortgage has higher monthly payments but reduces total interest paid and accelerates equity building. The best choice depends on your monthly budget and long-term goals.

How much income is needed to afford a home in Tennessee?

Income requirements vary based on home price, interest rate, down payment, and personal debt. According to data from Rocket Mortgage and Redfin, the average annual household income in a median priced home in Tennessee is $86,760. Use tools like the Rocket Mortgage affordability calculator to better understand how much house you can afford in Tennessee with your household income.  

The bottom line: What shapes mortgage payments in Tennessee

Mortgage payments in Tennessee are influenced by home prices, interest rates, loan terms, property taxes, and insurance costs. With a combination of moderate prices and manageable taxes, the state offers buyers an opportunity for more affordable monthly payments than many other regions.

Starting the homebuying process by getting prequalified for a loan with Rocket Mortgage can help you see your buying power, explore your options, and make informed decisions with confidence — whether you’re a first-time buyer or relocating within the Volunteer State.

*Methodology: Average monthly mortgage payment in a region, calculated based on average home purchase price for a fixed 30-year loan and a 52-week average interest rate of 6.68% from Freddie Mac as of August 2025.