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North Dakota vs Tennessee:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between North Dakota and Tennessee. Updated for 2026.

MetricNorth DakotaTennessee
Median Home Price$255K$340K
Property Tax Rate0.98%0.56%
Avg Closing Costs$3K$5K
Closing Cost %1.1%1.5%
Transfer TaxNone0.37%
Homeowners Insurance$2,100/yr$2,400/yr
First-Time Buyer Program
NDHFA FirstHome
DCA up to $14,000
THDA Great Choice Home Loan
Up to $25,000 DPA
Verdict

North Dakota wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $255K and lower overall costs, North Dakota offers meaningful savings compared to Tennessee. Both states offer first-time buyer programs — explore the state pages for full details.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

North Dakota
Home Price$255,000
Down Payment (10%)$25,500
Loan Amount$229,500
Monthly P&I$1,451
Monthly Property Tax$208
Monthly Insurance$175
Monthly PMI$96
Total PITI$1,929/mo
Annual property tax: $2,499
Tennessee
Home Price$340,000
Down Payment (10%)$34,000
Loan Amount$306,000
Monthly P&I$1,934
Monthly Property Tax$159
Monthly Insurance$200
Monthly PMI$128
Total PITI$2,420/mo
Annual property tax: $1,904

Buying in North Dakota saves you approximately $491/month ($5,892/year) compared to Tennessee, based on median home prices with identical loan terms.

Which State Is Right for You?

North Dakota offers meaningfully lower home prices than Tennessee, with median prices running 25% less ($85K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Tennessee may find North Dakota far more accessible, particularly when combined with local down payment assistance programs.

Tennessee has a moderate property tax advantage at 0.56% versus North Dakota's 0.98%. While the rate gap of 0.42% may seem small, it translates to an annual difference of approximately $595 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $5K in savings.

Both states offer down payment assistance for first-time buyers. North Dakota's NDHFA FirstHome provides DCA up to $14,000, 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.

Key Takeaway

The bottom line: North Dakota and Tennessee are broadly similar in housing costs, with only $491/month separating them in total PITI payments. In cases like this, your decision should be driven by lifestyle preferences — job opportunities, climate, proximity to family, and quality of life — rather than pure cost savings. Either state offers a reasonable path to homeownership.

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