The Commissioner of Financial Institutions, Commissioner Gonzales, has announced the maximum effective interest rate for home loans for January 2025. Following the Federal National Mortgage Association’s decision to discontinue its free market auction system for purchasing conventional home mortgages, the rate has been set at 8.43% per annum.
This rate is determined by the General Assembly’s 1987 Public Chapter 291, which specifies an interest rate four percentage points higher than the market yield index of long-term government bonds, adjusted to a thirty-year maturity by the U.S. Department of the Treasury. Based on the most recent weekly average data, the calculated rate is 4.43%.
Latest TN News
Individuals affected by this rate should seek legal advice regarding the implications of the Depository Institutions Deregulation and Monetary Control Act of 1980 and its amendments. The Act, along with regulations from the Federal Home Loan Bank Board, may preempt state usury laws for certain loans made post-March 31, 1980.
For further details, contact Alica Owen, Public Information Officer at the Tennessee Department of Financial Institutions, at (615) 289-4738.
Source: Read Original Release