Mortgage Refinance in Tennessee
A Tennessee refinance pays the recordation tax again, $0.115 per $100 of the new loan, but no transfer tax, because no deed changes hands. We put every cost in the break-even before you commit, price every refinance type side by side, and are licensed statewide, in all 95 counties, closing at a title company or attorney’s office near you.
Tennessee Mortgage License 218217. NMLS #1925352.
Refinancing in Tennessee, 2026
State tax on the new loan
Recordation tax, $0.115 per $100 above $2,000
Transfer tax
None on a refinance
Cash-out
Up to 80% on FHA and most conventional (primary residence); VA higher
Streamlines
FHA Streamline and VA IRRRL, usually no appraisal
Closing
Title company or attorney near you, or a mobile notary
$0.115
Recordation tax per $100 of the new loan
80%
Maximum cash-out loan-to-value, conventional and FHA
95
Tennessee counties, licensed statewide
4.9
Average of 5,300+ Google reviews
Why the break-even matters in Tennessee.
A refinance pays for itself when the monthly saving has covered the closing costs, and Tennessee adds one cost most states do not: the recordation tax of $0.115 per $100 of the new mortgage above the first $2,000, about $435 on a $380,000 loan, paid every time a new mortgage is recorded. The transfer tax from your purchase does not come back, because a refinance records a mortgage rather than a deed. The rest of the bill is the lender’s charges, a new lender’s title policy, the closing agent’s fee and an appraisal where one is needed. We show you the month your refinance breaks even, and if it is further out than you plan to keep the home, we say so.
Three things make a Tennessee refinance worth running the numbers on. Middle Tennessee’s price growth has given many owners who bought with FHA the equity to refinance into a conventional loan and drop mortgage insurance for good. A cash-out refinance can pay for a renovation, consolidate debt or fund the down payment on a rental, at a mortgage rate. And a homeowner with a VA or FHA loan has a streamline option that skips the appraisal and most of the paperwork, though the recordation tax still applies to it.
This page covers refinancing in Tennessee. For the state as a whole, see our Tennessee page; for the refinance process itself, see the refinance hub and the cash-out hub. If you are buying rather than refinancing, buying in Tennessee is the page you want, and FHA in Tennessee and VA in Tennessee cover the streamlines in depth.
Three kinds of Tennessee refinance, and when each makes sense.
Lower the rate or the term, pull equity out, or replace an FHA or VA loan with less paperwork. The recordation tax applies to all three.
Lower payment
Rate-and-term refinance
Replace your loan with a lower rate, a shorter term or a fixed payment, with as little as 5 percent equity on a conventional loan. The usual Tennessee reason is dropping FHA mortgage insurance once you reach 20 percent equity; we show the new payment beside the old one with the recordation tax in the costs.
Use equity
Cash-out refinance
Borrow up to 80 percent of the home’s value on a conventional or FHA loan, more on VA, and take the difference in cash. Common uses in Tennessee: a kitchen or an addition, debt consolidation, a down payment on a rental or a lake place. The recordation tax is figured on the whole new loan, so a larger cash-out costs a little more at closing.
Less paperwork
FHA Streamline and VA IRRRL
If you already have an FHA or VA loan, the streamline replaces it at a lower rate with no appraisal and, in most cases, no income verification, as long as the new loan gives you a real benefit. The recordation tax still applies to the new loan, and we include it in the break-even.
What each refinance needs, and what Tennessee adds.
Program rules are federal; the last column is what changes in Tennessee. Your pro tells you which fits your file.
| Refinance | Equity, credit and appraisal | In Tennessee |
|---|---|---|
| Conventional rate-and-term | From 5% equity, 620 score, appraisal usually required; mortgage insurance you can ask to cancel at 80% of the original value | Recordation tax on the new loan; a new lender’s title policy and the closing agent’s fee are the other third-party costs |
| Conventional or FHA cash-out | Keep 20% equity on a primary residence (lower caps on second homes and rentals); 620 conventional, 580 FHA; appraisal required | Tax figured on the whole new loan amount, so a larger cash-out costs more at closing |
| FHA Streamline | Existing FHA loan at least 210 days old with six payments; no appraisal; net tangible benefit test | Recordation tax applies; part of the original upfront premium is refunded toward the new one |
| VA IRRRL | Existing VA loan; 0.5% funding fee; no appraisal or income verification in most cases | Recordation tax applies; the funding fee is exempt if you receive VA disability compensation |
| VA cash-out | Up to 100% of value under VA rules, most lenders cap at 90%; full underwriting | Can replace a non-VA loan; the funding fee is 2.15% on first use or 3.3% after, exempt if you receive VA disability compensation |
The recordation tax is $0.115 per $100 of the new loan above the first $2,000, on every refinance type. There is no transfer tax on a refinance because no deed is recorded.
Dropping FHA mortgage insurance is the most common Tennessee refinance.
A large share of recent first-time buyers across the Nashville metro, Knoxville and Chattanooga used FHA, and with less than 10 percent down FHA’s annual mortgage insurance never goes away on its own. Price growth has pushed many of them past 20 percent equity, which is the point where a conventional refinance removes the premium for good. On a $350,000 loan that is roughly $160 a month, before any rate change.
The arithmetic has to include Tennessee’s recordation tax, about $400 on a $350,000 loan, plus the lender’s, title and closing agent’s fees. If the premium saving alone covers that in two or three years and you plan to stay, it works. If rates are higher than your current one, we show you whether the premium saving still wins. Either way you see the break-even month before anything is ordered.
Memphis to the Smokies
Refinances closed at a Tennessee title company or attorney’s office near you, or with a mobile notary at your kitchen table.
Six Tennessee details on a refinance file.
These decide what a Tennessee refinance costs and how it closes. All of them are on your Loan Estimate from the start.
01
Recordation tax
$0.115 per $100 of the new loan above the first $2,000, paid by the borrower whenever a mortgage is recorded. About $435 on a $380,000 refinance, streamlines included.
02
No transfer tax
A refinance records a new deed of trust, not a deed, so the $0.37 per $100 transfer tax from your purchase does not come back.
03
Closing agent
A title company or an attorney, your choice. We coordinate the closing package and the payoff with their office, and a mobile notary can bring the signing to you.
04
The appraisal
Required on most refinances except streamlines. Middle Tennessee values moved quickly, so a recent sale on your street can change what you qualify for.
05
Property taxes unchanged
Refinancing does not change your assessment or your February tax bill. The new lender sets up an escrow for the next instalment and the old escrow is refunded after payoff.
06
The right of rescission
When the refinance is secured by your principal residence, federal law gives you three business days to cancel, counted under federal rules from closing and delivery of the required notices, and the payoff funds once that period passes. A refinance with your current lender is covered only as to new money advanced, and a second home or rental has no waiting period. The payoff funds once that period ends.
When does a Tennessee refinance pay for itself?
Enter your current loan and the new rate. Add about 0.115 percent of the loan for the recordation tax on top of the lender, title and closing fees, and the calculator shows the break-even month.
The U.S. mortgage market right now.
National average rates from the Federal Reserve Bank of St. Louis FRED database: the Freddie Mac survey for conventional and the Optimal Blue indices for FHA and VA, shown as third-party market benchmarks, not MortgagePros pricing. Your refinance rate and APR depend on your credit, equity, loan type and the day you lock.
Conventional 30-year fixed, U.S. average
7.40%
FHA 30-year fixed, U.S. average
7.18%
VA 30-year fixed, U.S. average
7.09%
Sources: Freddie Mac Primary Mortgage Market Survey (conventional, 30-year national average, week of Oct 8, 2026) and Optimal Blue Mortgage Market Indices (FHA and VA, 30-year national averages as of Oct 8, 2026), distributed through FRED, Federal Reserve Bank of St. Louis; the figures and dates refresh automatically from the source. These are third-party market benchmarks, not MortgagePros rates and not an offer of credit. Your rate and APR depend on your credit, loan type, property and lock date.
How a Tennessee refinance works with us.
Four steps, one licensed pro, and a Tennessee closing near you.
1
The break-even first
Your current loan, the new rate and every closing cost, including the recordation tax, in one estimate with the month the refinance pays for itself.
2
The right refinance, priced side by side
Rate-and-term, cash-out, FHA Streamline or VA IRRRL compared for your file.
3
Appraisal and title
Appraisal ordered early where one is needed, and the title work started as soon as the application is in.
4
Close near you
At a Tennessee title company or attorney’s office near you, or with a mobile notary; the payoff funds after the three-business-day cancellation period that applies to a principal residence. The recordation tax is on the closing statement exactly as quoted.
Ready to see your Tennessee break-even?
A Tennessee-licensed pro shows you the new payment, every cost including the recordation tax, and the month the refinance pays for itself. Free, and it starts without a hard credit pull.
Refinancing in Tennessee, answered.
The questions Tennessee homeowners ask us most. If yours is not here, a licensed pro will answer it directly, with no obligation.
What does a Tennessee refinance cost?
The lender’s fees, a new lender’s title policy, the closing agent’s fee, an appraisal where one is required, prepaid interest and escrow, plus the recordation tax at $0.115 per $100 of the new loan above $2,000. On a $350,000 refinance plan on roughly $4,000 to $6,000 in total, of which about $400 is the recordation tax. Your actual costs are itemized on the Loan Estimate before you commit.
Does Tennessee charge the transfer tax on a refinance?
No. The realty transfer tax applies when a deed is recorded, and a refinance records a deed of trust, not a deed. The recordation tax on the new mortgage does apply, on streamlines as well.
How much equity do I need?
About 5 percent for a conventional rate-and-term refinance, and on a primary residence you generally keep 20 percent equity after an FHA or conventional cash-out; second homes and rentals are capped lower. VA cash-out can go higher under VA rules, though most lenders cap it at 90 percent. FHA Streamlines and VA IRRRLs usually need no appraisal at all.
Do I need an attorney to refinance in Tennessee?
No. A title company or an attorney can close it, and most refinances close at a title company or with a mobile notary at home. We coordinate the closing package and the payoff either way.
Can I refinance to get rid of FHA mortgage insurance?
Yes, and it is the most common Tennessee refinance. Once you have about 20 percent equity, a conventional refinance removes the premium for good. We show you the saving beside the closing costs, including the recordation tax, so you can see the break-even before anything is ordered.
Do I have to come to Michigan?
No. Your licensed pro handles the refinance by phone, email and e-signature, and the closing is at a Tennessee title company or attorney’s office near you, or with a mobile notary.
Talk to a Tennessee-licensed pro about refinancing.
Tell us what you are looking to do and where in Tennessee. A licensed pro will call back, usually the same business day. Asking does not start a loan or require a hard credit pull.
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880 W. Long Lake Rd, Suite 300
Troy, Michigan 48098, just off I-75. Free parking.
Licensed and reviewed
Tennessee Mortgage License 218217. NMLS #1925352. Rated 4.9 across 5,300+ Google reviews.