Tennessee Department of Financial Institutions · TN
COMMISSIONER GONZALES ANNOUNCES MAXIMUM EFFECTIVE RATE of INTEREST
September 9, 2026
Summary
Effective October 2026, the maximum annual interest rate for home loans in Tennessee is 10.78%, set at APOR plus 4 percentage points. Lenders must not exceed this cap for any residential mortgage, including those with state-chartered institutions. Consult legal counsel regarding potential preemption by federal law for loans after March 31, 1980.
AI-generated summary · Sep 15, 2026. Verify with your compliance counsel before acting.
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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 October 2026 is 10.78 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 6.78 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
Common questions
- What does "COMMISSIONER GONZALES ANNOUNCES MAXIMUM EFFECTIVE RATE of INTEREST" cover?
- Effective October 2026, the maximum annual interest rate for home loans in Tennessee is 10.78%, set at APOR plus 4 percentage points. Lenders must not…
- Which agency issued this update?
- This update was issued by Tennessee Department of Financial Institutions.
- When was it published?
- It was published on September 9, 2026.
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