Tennessee Maximum Home Loan Interest Rate for April 2026

TN TDFI News

Published March 3rd, 2026

Detected March 18th, 2026

Summary

The Tennessee Department of Financial Institutions announced the maximum effective interest rate for home loans for April 2026 will be 9.98%. This rate is set at four percentage points above the average prime offer rate for a thirty-year fixed loan.

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What changed

The Tennessee Department of Financial Institutions (TDFI) has announced the maximum effective annual interest rate for home loans for April 2026, setting it at 9.98%. This rate is determined by adding four percentage points to the average prime offer rate (APOR) for a thirty-year fixed loan, as published by the FFIEC. The TDFI notes that the calculated APOR preceding this announcement was 5.98%.

Affected parties, including lenders and financial institutions operating in Tennessee, should be aware of this rate for loans issued in April 2026. The notice also advises consultation with legal counsel regarding the potential preemption of state usury laws by federal acts like the Depository Institutions Deregulation and Monetary Control Act of 1980. No specific compliance deadline is mentioned beyond the rate applying to April 2026 loans.

What to do next

Review the announced maximum effective interest rate of 9.98% for home loans applicable in April 2026.
Consult legal counsel regarding the applicability of federal preemption laws to state usury laws for loans made after March 31, 1980.

Source document (simplified)

COMMISSIONER GONZALES ANNOUNCES MAXIMUM EFFECTIVE RATE of INTEREST

Tuesday, March 03, 2026 | 10:05am The Commissioner of Financial Institutions hereby announces that the maximum effective rate of interest per annum for home loans as set by the General Assembly in 2025, Public Chapter 290, for the month of April 2026 is 9.98 percent per annum.

The maximum effective rate of interest per annum for home loans shall be set at an amount equal to four (4) percentage points above the average prime offer rate (APOR), as defined in 12 CFR 1026.35, that applies to a thirty-year fixed loan, as published by the Federal Financial Institutions Examination Council (FFIEC), or its successor federal entity. For the most recent APOR statistical data available preceding the date of this announcement, the calculated rate is 5.98 percent.

Persons affected by the maximum effective rate of interest for home loans as set forth in this notice should consult legal counsel as to the effect of the Depository Institutions Deregulation and Monetary Control Act of 1980 (P.L. 96-221 as amended by P.L. 96-399) and regulations pursuant to that Act promulgated by the Federal Home Loan Bank Board. State usury laws as they relate to certain loans made after March 31, 1980, may be preempted by this Act.

Alica Owen
Public Information Officer
Tennessee Department of Financial Institutions
(615) 289-4738