HELOCs in Tennessee

What a typical Tennessee home could support, current HELOC rates, and the Tennessee rules that affect a home equity line, from a lender licensed in Tennessee.

Reviewed by Shawn Way, NMLS #1007298★ 4.9 from 111 reviewsUpdated October 28, 2026

Short answer

How much can you borrow with a HELOC in Tennessee?

Owners of a typical Tennessee home could open a HELOC of about $100,345. That assumes the median $286,700 home, half of it still owed and an 85% combined cap. Typical HELOC rates for 720+ credit run about 8.00%–9.75% APR: the prime rate (7.00%) plus a margin. The median line Shawn Way's team funded in Tennessee since 2023 was $79,000.

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Tennessee home equity by the numbers

Tennessee's median owner-occupied home value is $286,700, the 20th highest of the 37 states and districts where Shawn is licensed. Here's what that home could support at an 85% cap, depending on how much is still owed:

Mortgage balance	Possible line	Interest-only at 7.75% APR, fully drawn
$71,675 (25% owed)	$172,020	$1,111
$143,350 (50% owed)	$100,345	$648
$215,025 (75% owed)	$28,670	$185

Median value of owner-occupied housing units, U.S. Census Bureau, American Community Survey 5-year estimates, 2020–2024. Your home's value and your income set your real number: calculate your own line.

Put this into your own numbers.

Use a free calculator, or get your HELOC rate from Shawn.

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Keeping a low rate: a Tennessee example

On a typical $286,700 home with $143,000 left on a 3.5% mortgage, borrowing $50,000 with a HELOC instead of a cash-out refinance saves about $94 a month:

Option	Monthly cost
Keep the 3.5% mortgage, add a $50,000 HELOC (7.75% APR, 20-year payoff)	$1,126
Cash-out refinance of $193,000 (6.5% illustrative rate, 30 years)	$1,220

Mortgage plus HELOC payments shown together; refinance shown as principal and interest. Run your own numbers.

HELOCs Shawn's team has funded in Tennessee

Since 2023, loan officers on Shawn Way's team have funded 264 HELOCs on Tennessee homes, the #11 state for the team. The median line here was $79,000, below the team's median of $92,000 across all states.

HELOCs funded	264
Median line	$79,000
Middle half of lines	$57,000 to $116,000
Median home value	$395,000
Median line as a share of home value	19%
Median starting rate, 2026	9.40%
Fixed-rate share	87%
Borrowers with 720+ credit	51%

What HELOC rate do Tennessee borrowers actually get?

Tennessee borrowers got a median HELOC starting rate of 9.40% in 2026 on loans Shawn Way's team funded, 0.70 point higher than the team's 8.70% median across all states. 4% of Tennessee HELOCs were on investment properties, versus 3% overall. The gap reflects the local mix of credit, line sizes and properties, not different pricing.

Credit score	HELOCs in 2026	Median starting rate
760+	17	8.74%
720–759	14	8.82%
680–719	18	9.74%
640–679	12	9.88%

From the team's funding records, with no borrower details. Rates depend on credit, line size and the date funded. Method and the full data: the HELOCHQ HELOC Report.

Owning a home in Tennessee: what lenders notice

Tennessee has no tax on wages. Foreclosures are nonjudicial under deeds of trust. Values have risen quickly around Nashville and Knoxville, building equity for owners who bought earlier. The state's recordation tax on indebtedness applies to the line amount.

Tennessee rules that affect your HELOC

Tennessee charges a recordation tax on indebtedness of $0.115 per $100, with the first $2,000 exempt. On a $100,000 line that's about $113.
No state income tax on wages. Lenders still qualify you on gross income (debt-to-income ratio), but the payment can be easier to carry.

If payments ever become a problem

Most foreclosures in Tennessee are nonjudicial, through a trustee's sale without a court case, so timelines are short. If payments get hard, call the lender early. What happens if you can't pay.

Where we lend in Tennessee

West Capital Lending, Inc. is licensed to lend in Tennessee. Shawn Way holds Tennessee Mortgage Loan Originator license #1007298, first issued 06/01/2018. We lend statewide, including Nashville, Memphis, Knoxville, Chattanooga and Murfreesboro. Beyond HELOCs we offer purchase and refinance mortgages in Tennessee: conventional, FHA, VA, USDA, jumbo, self-employed, DSCR, construction and reverse mortgages.

Common questions

Is HELOC interest deductible in Tennessee?

Tennessee has no state income tax on wages, so only the federal rule matters: interest can be deductible when the money buys, builds or substantially improves the home and you itemize. The rules.

Nearby states we lend in: HELOCs in Kentucky, HELOCs in Virginia, HELOCs in Alabama, HELOCs in Arkansas, HELOCs in Missouri.

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