Closing Costs in Tennessee (2026)

Buyers in Tennessee typically pay 2% to 5% of the purchase price in closing costs — roughly $7,782 to $19,455 on a median-priced home around $389,100. Our itemized estimate, including lender fees, title work, government fees, and prepaid taxes and insurance, comes to about $14,692 (3.8% of the price) with 20% down at 6.75%.

The effective property tax rate in Tennessee is approximately 0.73% of home value per year. On a median-priced home of $389,100, that works out to about $2,840 per year, or $237 per month. Several months of taxes are usually collected up front at closing to fund your escrow account.

Yes. Tennessee recordation tax is customarily paid by the buyer. At that rate on a $389,100 home, the tax is roughly $1,440 — and in this state the buyer customarily pays it, so it is included in our estimate. Everything is negotiable in the purchase contract.

The 2026 conforming loan limit in most of Tennessee is $832,750 for a one-unit home. Some high-cost counties go as high as $1,249,125. On a median-priced $389,100 home with 20% down, the loan is $311,280 — within the conforming limit in most counties. FHA limits also vary by county (2026 floor about $541,288).

With 20% down on a $389,100 home, plan for about $92,512 in total: $77,820 for the down payment plus roughly $14,692 in closing costs and prepaid items. A smaller down payment reduces the cash needed but adds PMI to your monthly payment.

On a median-priced $389,100 home with 20% down and a 30-year loan at 6.75%, the total monthly payment is about $2,543 — $2,019 in principal and interest, $237 in property taxes, and $288 in homeowners insurance.