Refinance Calculator for Tennessee

Refinancing in Tennessee

Whether refinancing makes sense depends on how much equity you've built, the rate differential, and how long you plan to stay. In Tennessee, where the median home value is $310,000, many homeowners have accumulated significant equity since 2020. Nashville and suburbs (Williamson, Rutherford, Wilson counties) have seen 40-60% appreciation since 2020. Knoxville has also emerged as a top relocation destination. Memphis remains the state's most affordable major market.

Conforming Loan Limits in Tennessee

For a rate-and-term refinance to qualify as a conventional loan in Tennessee, the balance must stay under $726,200. No Tennessee counties currently qualify for high-cost conforming limits. Refinancing above this requires a jumbo product.

Closing Costs on a Tennessee Refinance

Expect to pay $2,500 in closing costs on a refinance in Tennessee. Tennessee charges a transfer tax of $0.37/$100 of value (a deed tax), which is very low. Overall closing costs are among the lowest in the Southeast. Your break-even point is when your monthly interest savings equal these upfront costs.

Property Tax Considerations

Refinancing doesn't affect your property tax assessment in Tennessee — the effective rate stays at 0.66% regardless. Tennessee has no state income tax on wages and no broad sales tax on food, making it one of the lower total tax burden states. Nashville has become one of the country's most in-demand relocation markets, driving up home values and eventual property tax bills.

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