Finance · Tennessee

Tennessee Mortgage Calculator (2026)

Calculate your monthly payment with Tennessee-specific property tax (0.71%) and average insurance ($1,820/yr).

Tennessee defaults: property tax ≈ 0.71% of home value · homeowners insurance ≈ $1,820/year · median home value ≈ $339,000. The calculator is preset with these — adjust for your situation.
Standard loan; PMI if DP < 20%, drops at 78% LTV.
Annual costs

Monthly payment

$2,509.21
PITI + PMI/MIP

Payment breakdown

Principal & interest
$2,029.84
Property tax
$200.58
Insurance
$151.67
PMI
Drops month 115
$127.13
Total monthly
$2,509.21

Loan summary

Loan amount
90.0% LTV
$305,100
Total interest paid
$425,642

Amortization schedule (first 12 + every 12 months)

MonthPrincipalInterestPMI/MIPBalance
1$250.09$1,779.75$127.13$304,850
2$251.55$1,778.29$127.13$304,598
3$253.01$1,776.82$127.13$304,345
4$254.49$1,775.35$127.13$304,091
5$255.97$1,773.86$127.13$303,835
6$257.47$1,772.37$127.13$303,577
7$258.97$1,770.87$127.13$303,318
8$260.48$1,769.36$127.13$303,058
9$262.00$1,767.84$127.13$302,796
10$263.53$1,766.31$127.13$302,532
11$265.07$1,764.77$127.13$302,267
12$266.61$1,763.23$127.13$302,001
24$285.88$1,743.95$127.13$298,677
36$306.55$1,723.29$127.13$295,114
48$328.71$1,701.13$127.13$291,293
60$352.47$1,677.36$127.13$287,195
72$377.96$1,651.88$127.13$282,802
84$405.28$1,624.56$127.13$278,091
96$434.58$1,595.26$127.13$273,039
108$465.99$1,563.85$127.13$267,622
120$499.68$1,530.16$261,814
132$535.80$1,494.04$255,585
144$574.53$1,455.31$248,907
156$616.06$1,413.77$241,745
168$660.60$1,369.24$234,066
180$708.36$1,321.48$225,832
192$759.56$1,270.28$217,002
204$814.47$1,215.37$207,534
216$873.35$1,156.49$197,382
228$936.48$1,093.35$186,496
240$1,004.18$1,025.66$174,823
252$1,076.77$953.06$162,306
264$1,154.61$875.22$148,884
276$1,238.08$791.76$134,492
288$1,327.58$702.26$119,059
300$1,423.55$606.28$102,511
312$1,526.46$503.38$84,766
324$1,636.81$393.03$65,739
336$1,755.14$274.70$45,337
348$1,882.01$147.82$23,459
360$2,018.07$11.77$0

What the payment actually costs

The carrying cost that lenders leave out of the headline number: at 0.71% effective, Tennessee sits 37th of 51 states and adds around $237 a month to a $400,000 home, or $2,840 a year.

Homeowners insurance runs about $1,820 a year in Tennessee, 14th of 51 states and above the $1,552 national average. Together, tax and insurance add roughly $388 a month to the payment before you have paid a dollar of principal.

How this fits the rest of your tax bill

Tennessee charges no income tax, and property tax is where that revenue is recovered. At 0.71% the rate ranks 37th of 51. For a renter the no-income-tax advantage is close to pure gain; for an owner of a $400,000 home it is offset by roughly $2,840 a year. Run both sides before assuming the state is cheap.

Housing costs compound with the rate. Tennessee runs about 8% below national-average costs, so the same 0.71% rate applies to a smaller assessed value than it would elsewhere. A percentage rate is only half the number that matters; the base it applies to is the other half.

Property tax rates are effective statewide averages; your county assessor sets the actual figure and it varies widely within a state. See our methodology.

Frequently Asked Questions

What's the average property tax rate in Tennessee?
Tennessee's effective property tax rate is approximately 0.71% of home value per year. On a $339,000 home, that's about $2,407 per year (or $201/month). The calculator above uses this as the default — adjust if your specific county is higher or lower.
What's a typical homeowners insurance cost in Tennessee?
The average annual homeowners insurance premium in Tennessee is around $1,820 for a typical home. High-risk states (Florida, Louisiana, Texas) tend to be higher due to hurricane/flood/wildfire exposure; low-cost states (Oregon, Hawaii, DC) sit at $1,000 or less.
How much do I need to put down on a Tennessee mortgage?
Conventional loans typically require 5-20% down. FHA allows just 3.5% down with a 580+ credit score. VA loans (military) allow 0% down. Putting 20%+ avoids PMI entirely on conventional loans, saving you 0.5-1% of the loan amount per year.
What credit score do I need to buy a home in Tennessee?
Conventional: 620 minimum (740+ for best rates). FHA: 580 with 3.5% down, or 500 with 10% down. VA: most lenders want 620 even though VA itself has no minimum. Higher credit = lower rate = thousands in savings over the life of the loan.
Should I rent or buy in this market?
Generally buying makes sense if you plan to stay 5+ years and your monthly payment (including taxes, insurance, maintenance) is within ~30% of your gross income. Use the calculator above to see your real monthly cost — many buyers underestimate the non-mortgage costs by 30-40%.

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