Should I Refinance? Calculate Your Savings
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Full Loan Comparison
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Disclaimer: Results are estimates for educational purposes only and do not constitute financial advice. Actual savings depend on your credit score, lender fees, prepaid interest, and local costs. Consult a licensed mortgage professional before refinancing.
Tennessee Refinance Breakdown
Refinancing a mortgage in Tennessee has become a hot topic for homeowners in Nashville, Memphis, Knoxville, and Chattanooga as the state has seen explosive population growth and one of the most dramatic home price appreciation cycles in the country over the past five years. Average Tennessee mortgage balances reached approximately $214,000 in 2024, up significantly from just a few years prior. With Nashville in particular now among the pricier mid-size markets nationally, many Tennessee homeowners have accumulated equity that a refinance can help put to work.
Refinance Closing Costs in Tennessee
Tennessee refinance closing costs typically range from 1.5% to 3.5% of the loan amount, with a state average near $3,600. Tennessee does not legally require attorney involvement in real estate closings as a mandatory statewide rule, with title companies handling most residential refinance transactions. However, attorney involvement is customary in many Tennessee markets, particularly the Nashville and Knoxville metros. Tennessee does not impose a mortgage recording tax, and the state's title market is competitive, which helps keep refinance costs moderate.
Cash-Out Refinance Rules in Tennessee
Tennessee homeowners follow standard conventional lending guidelines for cash-out refinances, with most lenders capping LTV at 80% of the appraised home value. There are no Tennessee-specific constitutional restrictions on cash-out amounts. The state's dramatic home value appreciation in Nashville and surrounding suburbs has created exceptional tappable equity for many homeowners, making cash-out refinancing particularly attractive for home improvement projects and debt consolidation. FHA allows 85% LTV and VA loans offer higher thresholds for eligible veterans.
Local Refinance Assistance Programs
Tennessee Housing Development Agency (THDA) administers the Great Choice Home Loan program offering below-market interest rates and the Great Choice Plus down payment assistance program for qualifying homebuyers. THDA's Home Ownership Voucher Program provides additional support for income-qualified borrowers. Rural Tennessee homeowners have substantial access to USDA Rural Development streamlined assist refinance options, and veterans should explore VA IRRRL streamline refinance opportunities widely available through THDA-approved and private lenders across the state.