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.
The 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 3, 2024. Commissioner Gonzales stated that this rate will remain in effect until the average prime loan rate, as announced by the Federal Reserve Bank, changes.
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According to Chapter 464, Public Acts of 1983, the legislation regulating interest rates in Tennessee, the commissioner of Financial Institutions is required to make an announcement weekly about the formula rate of interest.
For more information, please contact:
Alica Owen
Public Information Officer
Tennessee Department of Financial Institutions
(615) 289-4738
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New Home Loan Interest Rate Announced
The Federal National Mortgage Association has stopped its free market auction for purchasing conventional home mortgages, leading the Commissioner of Financial Institutions to set the maximum effective interest rate for October 2024 at 8.15 percent per annum. This rate is based on the market yields of long-term government bonds adjusted by the U.S. Department of the Treasury. Individuals should seek legal advice regarding the implications of the Depository Institutions Deregulation and Monetary Control Act of 1980 on this rate. For more information, contact Alica Owen at the Tennessee Department of Financial Institutions.