Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Hawaii and Tennessee. Updated for 2026.
Hawaii wins 3 of 6 cost categories, making it the more affordable state for homebuyers overall. However, Tennessee has a lower total cost when combining home price, closing costs, and insurance. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Tennessee saves you approximately $2,906/month ($34,872/year) compared to Hawaii, based on median home prices with identical loan terms.
There's a dramatic price gap between these two states. Homes in Tennessee cost 59% less than in Hawaii — that's a difference of $490K on the median home. For buyers relocating from Hawaii to Tennessee, this can mean upgrading significantly or pocketing substantial savings. The equity you've built in a Hawaii home could fund a much larger down payment in Tennessee, potentially eliminating PMI and reducing your monthly payment dramatically.
Property tax rates are similar in both states (Hawaii: 0.28%, Tennessee: 0.56%), so taxes shouldn't be the deciding factor in your relocation decision. Instead, focus on differences in home prices, insurance costs, and state-specific programs. Both states collect roughly comparable property tax revenue relative to home values.
Insurance costs favor Hawaii at $1,200/year versus $2,400/year in Tennessee, a difference of $1,200 annually. While not the largest cost factor, this adds up to over $12K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.
Closing costs are a one-time but significant expense. Hawaii averages $12K in closing costs (1.5% of purchase price) while Tennessee averages $5K (1.5%). The difference is spread across title insurance, attorney fees, and recording costs rather than a single large tax. Budget for these upfront costs — they affect how much cash you need on hand at closing.
Both states offer down payment assistance for first-time buyers. Hawaii's HHFDC Hula Mae Program provides Below-market rate mortgages, while Tennessee's THDA Great Choice Home Loan offers Up to $25,000 DPA. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: Tennessee homes cost $490K less than Hawaii on average. That translates to roughly $2,906 less per month in total housing costs if you choose Tennessee. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.