Buying a Home in Tennessee: What You Need to Know
If you're considering buying a home in Tennessee, understanding the true cost of homeownership is essential. Beyond your mortgage payment, Tennessee homeowners face property taxes, insurance costs, and closing fees that vary significantly from the national average. This calculator uses Tennessee-specific data to give you accurate monthly payment estimates.
Tennessee Property Taxes
Tennessee has an effective property tax rate of 0.49%, ranking #43 out of 50 states (where #1 is the highest). On a median-priced home of $380,000, you'd pay approximately $1,862 per year in property taxes, or about $155/month.
Tennessee is among the states with the lowest property taxes in the nation. This can make homeownership more affordable here compared to high-tax states, though you should verify rates in your specific county.
Tennessee Homeowners Insurance
The average annual homeowners insurance premium in Tennessee is $2,672 for $300,000 in dwelling coverage, or about $223/month.
Tennessee's insurance costs are moderate compared to national averages. You may be able to lower your premium by increasing your deductible, bundling with auto insurance, or installing security systems.
Tennessee Closing Costs
Closing costs in Tennessee average 1.18% of the home's purchase price. On a $380,000 home, that's approximately $4,484. Closing costs typically include:
- Loan origination fees
- Appraisal and inspection fees
- Title insurance and search
- Recording fees
- Prepaid property taxes and insurance
Tennessee Housing Market
The median home price in Tennessee is $380,000. This is close to the national median of approximately $410,000, offering a balanced housing market with options for various budgets.
More Tennessee Mortgage Tools
Use these additional calculators to plan your Tennessee home purchase: