meta_id 3303208

On July 7, 2026, the Tennessee Department of Financial Institutions (DFI) announced the maximum effective rate of interest per annum for home loans applicable in August 2026 is 10.49 percent. The Commissioner of Financial Institutions established this rate in accordance with Public Chapter 290, enacted by the General Assembly in 2025. The maximum effective rate is calculated by adding four percentage points to the average prime offer rate (APOR), as defined in 12 Code of Federal Regulations (CFR) 1026.35, that applies to a thirty-year fixed loan. The APOR is published by the Federal Financial Institutions Examination Council (FFIEC), or its successor federal entity. For the most recent APOR statistical data available preceding the announcement date, the calculated rate was 6.49 percent, resulting in the 10.49 percent maximum effective rate. The announcement applies to home loans subject to Tennessee's usury limitations. Persons affected by this rate should consult legal counsel regarding the implications of the Depository Institutions Deregulation and Monetary Control Act of 1980 (P.L. 96-221, as amended by P.L. 96-399) and associated federal regulations. State usury laws relating to certain loans made after March 31, 1980, may be preempted by federal law. Lenders and borrowers should ensure compliance with applicable federal and state regulations when entering into home loan agreements during August 2026 and subsequent periods, as the maximum effective rate may be adjusted monthly based on changes to the APOR.