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Mortgage Rates in Alabama

January 22, 2021

The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

If you're ready to purchase a home in Alabama, you'll want to start by shopping around for the best mortgage rates in the state, as your home loan will likely be the biggest debt you take on. Banks, credit unions, and online lenders all provide mortgages, and the interest rate you can get will depend in part on your credit and other financial factors.

To help you compare mortgage lenders, here are today's mortgage rates in Alabama.

Current Mortgage and Refinance Rates in Alabama

Rates As of Jan 22, 2021
Product Interest Rate Average Points/Credits
Fixed 30 Year 2.871% -0.053
Fixed 15 Year 2.284% -0.422
Fixed 30 Year - FHA 2.854% 0.047
Fixed 30 Year - VA 2.729% -0.033
Fixed 30 Year - Jumbo 3.750% -0.104
Fixed 30 Year 2.941% -0.060
Fixed 20 Year 2.765% -0.381
Fixed 15 Year 2.431% -0.138
Fixed 30 Year - FHA 2.803% -0.025
Fixed 30 Year - VA 2.579% -0.163
Fixed 30 Year - Jumbo 3.125% -0.477
The Ascent's Mortgage Rates Tracking Methodology

5 affordable places to live in Alabama

We scoured local statistics to help you find the Alabama cities easiest on your wallet. If you're looking for an affordable place to purchase your Alabama home, here are five places in Alabama with a low cost of living.

1. Montgomery

Montgomery is not only Alabama's most affordable city, but it also has the ninth-lowest cost of living of any city in America, according to Niche. The median home value in the area is just $119,600, and 55% of residents own their own home. The city is affordable for homeowners not just because home values are well below the national median value of $184,700, but also because property taxes average just 0.36% of a property's assessed fair market value -- one of the lowest in the country.

2. Birmingham

This city of 212,000 is also known for its affordability. Niche notes the median home value in this area is just $89,200. While its property tax rate is a little higher, averaging 0.58% of a property's assessed fair market value, your money stretches further if you make Birmingham your home. According to AL.com, home prices, groceries, transportation, and healthcare costs here are below the national average.

3. Huntsville

Huntsville is another Alabama city with more owners than renters, with 58% of residents owning their own home. And it's no wonder, as Huntsville was not only ranked 20th on Niche's listing of cities with the lowest cost of living, but was also named the ninth-best city to buy a house in America out of 228 ranked locations. The city, which has a median home value of $176,100, is the county seat of Madison, where property taxes average 0.43% of a property's fair market value. It also stretches into Limestone County, where taxes average an even more affordable 0.31%.

4. Mobile

Mobile comes in at No. 30 on Niche's list of America's most affordable cities. The median home value in the area is just $121,700, which helps explain why 54% of residents are owners rather than renters. Mobile also has one of the country's lowest property tax rates, collecting an average of just 0.5% of the assessed fair market value of each property.

5. Gadsen

Although not classified as a city, Gadsen is one of Alabama's most affordable towns. Among its 35,624 residents, around 60% are homeowners -- which makes sense given that the area's median home value is just $72,400. Gadsen was also named by Niche as the third-best place to live in Etowah County -- a county where property taxes are just 0.38% of assessed value of local homes.

Choosing an affordable home will allow you to borrow less and keep your monthly payments down. You can also keep costs low by shopping among multiple lenders for the best mortgage rates in Alabama to see which provides the best deal for you. Our mortgage calculator can help you estimate your monthly payment, including principal, interest, insurance, taxes, and PMI.

Select the state you want to see mortgage rates for:

Alabama mortgage rates Alaska mortgage rates Arizona mortgage rates Arkansas mortgage rates California mortgage rates Colorado mortgage rates Connecticut mortgage rates Washington DC mortgage rates Delaware mortgage rates Florida mortgage rates Georgia mortgage rates Hawaii mortgage rates Idaho mortgage rates Illinois mortgage rates Indiana mortgage rates Iowa mortgage rates Kansas mortgage rates Kentucky mortgage rates Louisiana mortgage rates Maine mortgage rates Maryland mortgage rates Massachusetts mortgage rates Michigan mortgage rates Minnesota mortgage rates Mississippi mortgage rates Missouri mortgage rates Montana mortgage rates Nebraska mortgage rates Nevada mortgage rates New Hampshire mortgage rates New Jersey mortgage rates New Mexico mortgage rates New York mortgage rates North Carolina mortgage rates North Dakota mortgage rates Ohio mortgage rates Oklahoma mortgage rates Oregon mortgage rates Pennsylvania mortgage rates Rhode Island mortgage rates South Carolina mortgage rates South Dakota mortgage rates Tennessee mortgage rates Texas mortgage rates Utah mortgage rates Vermont mortgage rates Virginia mortgage rates Washington mortgage rates West Virginia mortgage rates Wisconsin mortgage rates Wyoming mortgage rates

Check out more mortgage rates:

15-year mortgage rates

20-year mortgage rates

30-year mortgage rates

Refinance mortgage rates

FHA mortgage rates

Jumbo mortgage rates

VA loan rates

5/1 ARM rates

7/1 ARM rates

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