NASHVILLE–Tennessee Department of Financial Institutions Commissioner Greg Gonzales announced today that the maximum effective formula rate of interest in Tennessee is 12.50 percent per annum.
This rate is based on a ceiling of 4 percent over the weekly average prime loan rate of 8.50 percent, as published by the Federal Reserve on September 9, 2024. Commissioner Gonzales stated that this rate will remain in effect until there is a change in the average prime loan rate as announced by the Federal Reserve Bank.
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Chapter 464 of the Public Acts of 1983, which regulates interest rates in Tennessee, mandates that the commissioner of Financial Institutions make a weekly announcement of the formula rate of interest.
For further information, you may contact Alica Owen, the Public Information Officer at the Tennessee Department of Financial Institutions, at (615) 289-4738.
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New Maximum Effective Interest Rate Set for Home Loans
The Federal National Mortgage Association has stopped using its free market auction system for purchasing conventional home mortgages, leading to the establishment of a maximum effective interest rate of 8.15% for home loans in October 2024, as determined by the General Assembly.