Learn how to buy a home with Southern charm — and a great rate.
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If you’re shopping for a home in Alabama, understanding interest rates can help you pay less over the life of your mortgage. Saving even one percentage point on your interest rate can mean paying thousands less in interest over time.
Learn how to find the best mortgage rates in Alabama.
WEEKLY TRENDS AND INSIGHTS
On the week of December 9, 2024, the current average interest rate for a 30-year fixed-rate mortgage decreased NaN basis points from the prior week to %. The current average interest rate on a 15-year fixed-rate mortgage decreased NaN basis points from the prior week to %.
For context, a 30-year fixed-rate mortgage was NaN basis points higher a year ago. As for a 15-year fixed-rate mortgage, it was NaN basis points higher a year ago.
Mortgage lenders in Alabama use many factors when deciding how to set their rates:
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Alabama has several state programs available to first-time homebuyers. The main program is called Step Up, and it's operated by the Alabama Housing Finance Authority (AHFA). If you’re eligible, you can use any of the three programs below:
Keep in mind that your home location and your income can affect your eligibility for different loan programs and products. For example, if you’re home shopping in Mobile, which is in Mobile County, Alabama, the median household income is $73,000, 80% of AMI is $58,400, and 50% of AMI is $36,500. But if you’re shopping in Birmingham, Alabama, which is in Jefferson County, you could still qualify with a higher income. The median income in Birmingham is $89,600, 80% of AMI is $71,680 and 50% of AMI is $44,800.
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Mortgage rates drop or rise daily, reacting to changing economic conditions, central bank policy decisions, and investor sentiment. The table below shows recent trends in mortgage rates.
Product | Interest rate | APR | ||||
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General Information and Rate Disclosures: The listings that appear on this page are from companies that pay Credible compensation. This table does not include all companies or all available products. Displayed information is valid as of Dec 12, 2024 and assumes a customer with a 750 credit score borrowing a conventional loan for a single-family, primary residence, at or near zero discount points, and a 80% loan-to-home-value ratio. For products indicated as a jumbo (e.g. 30-year fixed jumbo rate), displayed information follows the same assumptions as a conventional loan but set at loan above the conforming limit. Here is an example of your payment based on a $400,000 loan amount, for each advertised loan term:
*Payments do not include amounts for taxes and insurance premiums, your actual payment obligation will be greater. The IP address of the customer accessing this page has been used to determine which U.S state should be used for pricing. In states where Credible does not have a license to operate, we are providing information about rates available in a nearby state. If you are viewing this page from an IP address in one of the states where Credible is not licensed, the rates displayed above are for consumers located in the neighbouring state shown below: IP state without license - Assumed location Missouri - Kansas Hawaii - California Rates, payments, and all information displayed are for informational purposes only and are subject to change without notice. This is not a credit decision or commitment to lend. Mortgage rates and terms you may qualify for depend on your individual financial circumstances. Payment Disclosures: All monthly payment amounts above assume on time monthly payments each month for the full duration of the loan term (e.g. 360 monthly payments for a 30 year loan). Displayed monthly payment amounts do not include amounts for property taxes and hazard insurance. Your actual monthly payment obligation will be higher. Amounts for borrower-paid mortgage insurance premiums are included in the monthly payment if (1) the loan amount is below the “conforming thresholds” set by Fannie Mae and Freddie Mac, and (2) the loan-to-home-value ratio is greater than 80%; mortgage insurance premiums are excluded from the monthly payment if either the loan amount is above the conforming thresholds or the loan-to-home-value ratio is less than or equal to 80%. Your actual payment obligation may be higher. “Conforming thresholds” depend on the county where the property is located. Fees Disclosures: The fee amounts shown above include estimates of loan costs and closing costs you may pay in connection with a mortgage transaction with the assumptions above. This includes fees the lender charges, including points and underwriting fees, and third party services the lender does not let you shop for such as a flood certification fee. It does not include title charges, recording costs, prepaids, initial escrow deposit, and other fees. ARM Disclosures: Variable rate products, such as ARMs, have interest rates that can change over the life of the loan. Changes in the interest rate will cause required payment amounts to change.” The displayed rate and payment will be in effect for the number of years in the product’s description (e.g. 5/1 ARM means the initial rate and payment are in effect for 5 years, 7/1 means they are in effect for 7 years, etc.), after which the rate and monthly payment will change every 12 months. Last updated on Dec 12, 2024. These rates are based on the assumptions shown here. Actual rates may vary. |
If you want to get the best Alabama mortgage rates, consider taking these steps:
Don’t forget to look beyond Alabama’s first-time homebuyer programs, too.
“I think it's great to know if you qualify for the HFA program, but it’s also in your best interest to explore your other options,” said Josh Kaplan, a closing costs expert and CEO of Closing Cost Help.
“There are a handful of different national programs that do not have income limits, require little to no money down, and can give you access to over $10,000 for your down payment and closing costs,” he said. “They also are more lenient on credit score and debt to income ratio in a lot of cases.”
One example is the Specially Adapted Housing (SAH) Grant from the U.S. Department of Veterans Affairs, which provides substantial grants to U.S. veterans looking to buy or build a home.
You have several mortgage options when buying a home in Alabama.
Conventional
FHA
VA
USDA
Jumbo
CALCULATORS
FINANCIAL EDUCATION
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