Financial Institutions

The Commissioner of Financial Institutions hereby announces that the maximum effective rate of interest per annum for home loans as set by the General Assembly in 2025, Public Chapter 290, for the month of December 2025 is 10.17 percent per annum. The maximum effective rate of interest per annum for home loans shall be set at an amount equal to four (4) percentage points above the average prime offer rate (APOR), as defined in 12 CFR 1026.35, that applies to a thirty-year fixed loan, as published by the Federal Financial Institutions Examination Council (FFIEC), or its successor federal entity. For the most recent APOR statistical data available preceding the date of this announcement, the calculated rate is 6.17 percent.

NASHVILLE--Commissioner of Financial Institutions Greg Gonzales announced today that the maximum effective formula rate of interest in Tennessee is 11.25 percent per annum. The rate is based on a ceiling of 4 percent over the weekly average prime loan rate of 7.25 percent as published by the Federal Reserve on October 6, 2025.