Are you considering settling down in the Volunteer State? If so, you’ve got company. Tennessee has roughly 3 million housing units and a homeownership rate of 66.5%, according to the U.S. Census Bureau’s 2019 American Community Survey.
The typical home value for Tennessee is $231,682, compared with a $329,000 national median sales price. But home values can vary by county.
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AmeriSave Mortgage Corp. is an online lender that has been in business since 2002. It was one of the first to offer an offsite digital mortgage experience for customers. The company says it has financed more than 664,000 borrowers since it began operating. With headquarters in Atlanta, AmeriSave services loans in 49 states and Washington, D.C.
Pentagon Federal Credit Union, widely known as PenFed, offers borrowers access to many types of mortgages: conventional, adjustable rate, jumbo and Department of Veterans Affairs, plus refinancing loans and home equity lines of credit. The financial institution, which serves 2.8 million members, was established in 1935 and is based in McLean, Virginia.
Best for low APR
New American Funding is a mortgage lender offering a variety of home loan options to homebuyers and homeowners nationwide except for Hawaii. The company, founded in 2003 and based in Tustin, California, has originated $64.2 billion in mortgages to date.
PNC Bank is one of the largest banks in the United States, serving more than 9 million customers in all 50 states. A full-service mortgage lender, PNC offers most mortgage loan product types.
Bank of America serves roughly 67 million customers in all 50 states. The lender offers conventional, Federal Housing Administration, Department of Veterans Affairs and jumbo loans as well as home equity lines of credit and mortgage refinancing.
Guaranteed Rate, founded in 2000 and based in Chicago, offers mortgage options including conventional loans, FHA loans, jumbo loans and interest-only loans to customers in all 50 states and Washington, D.C. Borrowers can take advantage of specialized loan products and Guaranteed Rate’s online application, documentation and loan payment options.
Wells Fargo offers a variety of mortgage products nationwide. Options include conventional, government-backed and jumbo loans. You can also refinance an existing mortgage with Wells Fargo.
SoFi is an online lender founded in 2011 and headquartered in San Francisco that offers fixed-rate mortgages. Refinance, jumbo and home equity loans are also available.
Best for customer service
Rocket Mortgage, the largest mortgage lender in the nation, was founded in 1985. The Detroit-based company is best known for its fully digital experience of buying or refinancing a home. Rocket Mortgage changed its name from Quicken Loans in the summer of 2021.
Chase, one of the world’s largest banks, was founded in 1799 in New York and offers fixed-rate, refinance and other mortgage loans.
The average mortgage rate in Tennessee is currently 6.43% for the 30-year fixed loan term.
Here are the interest rates offered to Tennessee residents looking to buy or refinance a home as of 02/07/2023
- 30-year fixed purchase: 5.86%
- 30-year fixed refi: 5.88%
- 15-year fixed purchase: 5.13%
- 15-year fixed refi: 5.48%
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Mortgage rates rose this week, with the average 30-year fixed rate jumping to 6.73% from 6.55% a week ago. Most fixed and adjustable rates are trending higher as the Federal Reserve tightens its monetary policy in response to mixed economic signals.
Mortgage interest rates are nearly twice as high as they were at the beginning of 2022, which continues to have a tangible impact on mortgage affordability and consumer housing sentiment. However, mortgage rates are widely expected to fall throughout the course of 2023. Here are the current mortgage rates, without discount points unless otherwise noted, as of Feb. 16:
- 30-year fixed: 6.73% (up from 6.55% a week ago).
- 20-year fixed: 6.77% (up from 6.62% a week ago).
- 15-year fixed: 6.02% (up from 5.75% a week ago).
- 10-year fixed: 5.97% (up from 5.77% a week ago).
- 5/1 ARM: 5.43% (up from 5.38% a week ago).
- 7/1 ARM: 5.7% (down from 5.81% a week ago).
- 10/1 ARM: 5.9% (up from 5.87% a week ago).
- 30-year jumbo loans: 6.78% (up from 6.59% a week ago).
- 30-year FHA loans: 5.98% with 0.06 point (up from 5.75% a week ago).
- VA purchase loans: 6.08% with 0.05 point (up from 5.86% a week ago).
The Tennessee Housing Development Agency provides a few programs to help first-time homebuyers, active-duty service members and veterans get into a home.
- Available to: Eligible first-time homebuyers and repeat homebuyers.
- Income limits: Vary by county (see THDA income limits).
- First-time homebuyers only? No.
- Loan options: 30-year, fixed-rate loan.
- Benefits: Makes it possible to take advantage of down payment assistance through the Great Choice Plus Loan.
- Available to: Eligible active-duty service members, veterans, reservists and their spouses.
- Income limits: Vary by county (see THDA income limits).
- First-time homebuyers only? No.
- Loan options: 30-year, fixed-rate loan.
- Benefits: This type of Great Choice Home Loan waives the requirement to be a first-time homebuyer and provides an interest rate discount of 0.5 as well as access to 100% funding through a VA loan. It also allows borrowers to qualify for a Great Choice Plus Loan.
- Available to: Homebuyers with a Great Choice Home Loan.
- Income limits: Vary by county (see THDA income limits).
- First-time homebuyers only? No.
- Down payment and closing cost assistance: Provides two options to assist with down payment and closing costs.
The Great Choice Plus-Amortizing is a second mortgage with a monthly payment over a 15-year term. The amount of the loan is 6% of the sales price and has the same interest rate as your mortgage. The second mortgage balance will be due if you choose to sell your home prior to the end of the loan term or refinance your mortgage.
The Great Choice Plus-Deferred is a second mortgage with deferred payments for a $6,000 loan amount over a 30-year term. There are no payments made for the term of the loan, and the loan is forgiven at the end of the 30-year term. However, the second mortgage is due if you choose to sell your home prior to the end of the loan term or choose to refinance your first mortgage.
U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.
To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. For mortgage lenders, we take into account each company’s customer service ratings, interest rates, loan product availability, minimum down payment, minimum FICO score and online features.
The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.
To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.
To recap, here are the picks:
Best Tennessee Mortgage Lenders of 2023
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does not include all loan companies or all loan offers available in the marketplace.
