Today's 30-year mortgage rate in Alabama averages 5.81%, slightly lower than the national average of 6.4%. Homebuyers can use programs like Step Up and the Affordability Income Subsidy Grant to reduce mortgage expenses.
Mortgage
Today's Mortgage Rates in Alabama (October 2024)
Updated: October 16, 2024
Advertising & Editorial Disclosure
MoneyGeek used publicly available data from Zillow for the rates on this page. Mortgage rates shift daily, and we take a snapshot of rates to analyze rate information for Alabama. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources.
Unless specifically noted otherwise, rates featured in the content are annual percentage rates (APRs).
This data was last updated on October 2024.
Current Mortgage Rates in Alabama
In October 2024, Alabama's average 30-year fixed mortgage rate declined to 5.81% from 5.95% in September. For a $250,000 loan with a 20% down payment, this decrease could save you about $7,088 in total interest, excluding expenses like property taxes or HOA fees.
Rates adjust frequently due to economic indicators and government bond yields. Our line chart shows how these rates have trended over the past several months; these changes can affect your monthly repayments.
Even small changes in mortgage rates can influence the total interest you'll pay. Understanding the current mortgage rate in Alabama can help you set a realistic budget for your home purchase.
Who Needs to Know Current Mortgage Rates in Alabama?
Current mortgage rates in Alabama serve both first-time home buyers and those seeking to refinance, given the state of the housing market:
First-time homebuyers
First-time homebuyers in Alabama can benefit from knowing current mortgage rates as it helps gauge the deals lenders may offer them.
Homeowners with mortgages
Homeowners in Alabama might consider a mortgage refinance if current rates are more favorable than theirs.
Purchase rates and refinance rates aren't the same. If you buy a home in Alabama, the current mortgage rate for a 30-year fixed mortgage is 5.81% — but if you're refinancing, the rate climbs to 6.13%. Keep this difference in mind as you plan your mortgage strategy.
Current Mortgage Rates in Alabama by Loan Type
A 30-year fixed-rate mortgage usually has a higher interest rate than a 15-year fixed mortgage. The longer time frame exposes lenders to more uncertainty, including interest rate shifts and the possibility of non-payment, which is reflected in the cost.
Understanding the different mortgage types in Alabama can help you make an informed decision. Use a mortgage calculator to see how different rates affect your monthly payment and overall interest expense. Your home loan's final cost can be influenced by various factors, including the type of mortgage you choose.
Data filtered by:Results filtered by:
Loan Type:
Loan Type:10-Year Fixed
| 4.97% | 5.20% |
INTEREST RATE VS. APR: WHAT'S THE DIFFERENCE?
An interest rate is what you pay each year to borrow money for a mortgage. The average mortgage interest rate for a 30-year fixed mortgage in Alabama is 5.76%.
The APR (annual percentage rate) reflects the interest rate plus any mortgage points and other costs associated with the loan. Alabama's average APR for a 30-year fixed mortgage is 5.81%.
Current Mortgage Rates in Alabama by Credit Score
In Alabama, if you have a credit score of 740 or above and make a down payment of 5% to 20%, you’ll see an average APR of 6.4% for a 30-year fixed mortgage. If your credit score drops below 680, the rate will increase to an average of 7.18%.
Your credit score changes the mortgage rates you may get in Alabama. Our interactive table helps you find the rates you might get based on your credit score and down payment amount:
Data filtered by:Results filtered by:
Credit Score Range:
Credit Score Range:740 or higher
Down Payment:
Down Payment:5% to 20%
| 10-year Fixed | 5.42% |
| 15-year Fixed | 5.44% |
| 20-year Fixed | 6.10% |
| 30-year Fixed | 6.40% |
| 5-year ARM | 8.13% |
| 7-year ARM | 7.64% |
Mortgage Types in Alabama
In October 2024, 30-year fixed-rate FHA and VA loans offer the lowest average APR for 30-year fixed mortgages in Alabama at 5.7%. Understanding your mortgage options can help you make better financial decisions. Here's a quick look at loan types for Alabama homeowners:
Mortgage Type | Definition | Impact on Rates | 30-Year Rates in Alabama |
|---|---|---|---|
Conventional loans | A conventional loan isn't insured by the federal government and adheres to the guidelines of government-sponsored entities. | Rates on conventional loans can vary based on credit score and down payment size. | 5.81% |
FHA loans | FHA loans are backed by the Federal Housing Administration, featuring lower down payments and credit score requirements. | FHA loans often have competitive rates that may be favorable for those with lower credit scores. | 5.7% |
VA loans | VA loans are guaranteed by the Department of Veterans Affairs, available to service members, veterans and eligible spouses. | VA loans can offer lower rates due to government backing, which reduces lender risk. | 5.7% |
USDA loans | USDA loans are home loans insured by the United States Department of Agriculture, focusing on homes in certain rural areas. | USDA loans typically offer lower rates with the backing of the government to promote rural home ownership. | currently unavailable |
Jumbo loans | Jumbo loans exceed the conforming loan limits set by Fannie Mae and Freddie Mac, often used for more expensive properties. | Jumbo loans generally have higher rates due to the larger loan amounts and increased lender risk. | 6.38% |
MORTGAGE RATE STRUCTURES IN ALABAMA
Mortgage rates in Alabama come in two types: fixed and adjustable.
- Fixed mortgage rates lock in your interest rate, so your monthly mortgage payments stay the same throughout the loan term.
- Adjustable mortgage rates (ARM) may provide lower initial payments and can be adjusted later, potentially reducing your monthly mortgage payments when rates drop.
As of October 2024, Alabama's average APR is 5.81% for a 30-year fixed mortgage and 7.14% for a seven-year ARM.
Mortgage Lenders in Alabama
Bank of America, Better and LoanDepot are the top mortgage options in Alabama because of their statewide availability, BBB accreditation and homeowner assistance programs. Other lenders in the state might also meet your needs.
Your mortgage rate in Alabama can vary by lender. Each lender offers different mortgage products, loan terms and interest rates. Comparing rates from several lenders can help you find the best deal.
- Bank of America
- 6Number of Mortgage Options
- YesOnline Application
- ABBB Rating
- Monday to Friday, 8 am to 10 pm ET Saturday 8 am to 6:30 pm ETCustomer Service Hours
Bank of America is a strong mortgage option in Alabama, offering both online and in-person services. It provides various mortgage options, including fixed-rate and adjustable-rate loans. The Affordable Loan Solution mortgage requires a minimum 3% down payment, while the VA loan for veterans and active military members requires no down payment.
Customer service is available Monday through Friday, 8 a.m. to 10 p.m. ET, and Saturday, 8 a.m. to 6:30 p.m. ET, through virtual, phone or in-person channels. Bank of America also offers homeowner assistance programs like America's Home Grant® and down payment grants to reduce financial strain when buying a home.
Pros
- Offers special mortgage programs
- Client payment assistance available
- Online financial calculators
Cons
- Online profile needed to prequalify
- Credit minimums not disclosed
- Loan Depot
- 3Number of Mortgage Options
- YesOnline Application
- A+BBB Rating
- Monday to Friday, 10 am to 9 pm ETCustomer Service Hours
LoanDepot offers both online and in-person services. You can choose fixed-rate loans for predictable payments or adjustable-rate loans for flexibility.
LoanDepot works with borrowers with a minimum credit score of 580 for FHA loans. Conventional loans require a minimum 5% down payment, while FHA loans can go as low as 3.5% with strong credit. Even with lower credit, the down payment typically doesn’t exceed 10%. Veterans and eligible USDA loan recipients can qualify for zero down payment.
Customer service is available by phone or email Monday through Friday, 10 a.m. to 9 p.m. Loan Depot also helps homebuyers through its Loss Mitigation Assistance program.
Pros
- Offers hardship assistance
- Interactive mortgage calculator
- A+ BBB accredited
Cons
- No unique mortgage products
- No weekend customer support
- Better
- 4Number of Mortgage Options
- YesOnline Application
- B+BBB Rating
- Monday to Friday, 8 am to 9 pm ET Saturday and Sunday, 9 am to 9 pm ETCustomer Service Hours
Better is an online-only mortgage lender in Alabama, offering fixed and adjustable-rate loans. Jumbo loans require a 700+ credit score, while conventional loans need at least 620, and FHA loans are available with scores as low as 580.
Down payments for conventional loans start at 3% and increase to 10% for credit scores below 580. If you’re buying with a non-occupant, the down payment rises to 25%.
Customer service is available via phone and email from 8 a.m. to 9 p.m. ET, Monday through Friday, and on weekends. Alabama buyers can also use the Better Real Estate discount program.
Pros
- Loan officers not incentivized by commission
- Fast loan commitment issuance for eligible clients
- Sunday customer support available
Cons
- Limited to online operations; no physical locations
- No VA or USDA loan options
- BBB rating at B+ only
Mortgage Programs in Alabama
Buying a home is more than the monthly bill — it also comes with hidden costs that might impact your budget. You can find support in Alabama through the Alabama Housing Finance Authority with different mortgage programs.
Program | Description |
|---|---|
Offers down payment assistance and a favorable 30-year fixed mortgage rate. Income and property limits apply, yet first-time buying status is not mandatory. | |
Supports your closing costs with a grant, as long as your funds are low and you qualify by income. | |
Claim yearly federal tax credits on a major part of your mortgage interest, reducing long-term costs substantially. |
FAQ: Mortgage Rates in Alabama
Many borrowers have questions about today's mortgage rates in Alabama. We've answered common questions to help you stay informed during homebuying.
What are the current mortgage rates in Alabama?
Current average APRs in Alabama, as of October 2024, include 7.14% for a seven-year ARM and 5.81% for a 30-year fixed loan. Rates vary by loan type, credit score and other factors.
How do mortgage rates in Alabama compare to national rates?
As of October 2024, the current average APRs for a 15-year fixed-rate mortgage and a five-year ARM in Alabama are 5.2% and 7.42%, respectively. Nationally, these rates are 5.48% for a 15-year fixed-rate mortgage and 7.92% for a five-year ARM.
How does my credit score impact the mortgage rates I get in Alabama?
A higher credit score typically helps you secure low mortgage rates in Alabama, as lenders view you as a lower-risk borrower.
Are there any special mortgage programs in Alabama to help homebuyers?
Alabama has several mortgage programs to help homebuyers with financing: Step Up, Affordability Income Subsidy Grant and Mortgage Credit Certificates.
How can I get the best possible mortgage rate in Alabama?
To get the best mortgage rate in Alabama, consider improving your credit score, comparing offers from multiple lenders and providing a larger down payment.
What are today's mortgage refinance rates in Alabama?
As of October 2024, Alabama's current average refinance rates are 5.15% for a 15-year fixed mortgage and 6.13% for a 30-year fixed one.
How do I calculate my mortgage payments?
Estimate your monthly mortgage payments using a mortgage calculator for Alabama, which takes into account your loan amount, interest rate and loan term.
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
sources
- Alabama Housing Finance Authority. "Affordability Income Subsidy Grant." Accessed October 8, 2024.
- Alabama Housing Finance Authority. "Mortgage Credit Certificates." Accessed October 8, 2024.
- Alabama Housing Finance Authority. "Step Up." Accessed October 8, 2024.