Today's Mortgage Rates in Alabama

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Updated: July 24, 2024

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Today's 30-year mortgage rate in Alabama is at an average of 6.60%, compared to the national average, which is slightly higher at 6.90% for the same type of loan. In Alabama, homebuyers can take advantage of programs like Step Up and the Affordability Income Subsidy Grant to help reduce mortgage expenses.

We'll guide you through Alabama's various mortgage offerings, explaining how rates change depending on loan types and individual credit scores. We'll cover everything from the different structures of mortgage rates to a comprehensive overview of mortgage lenders alongside Alabama-specific mortgage programs.

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).

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This data was last updated on July 2, 2024.

Current Mortgage Rates in Alabama

The current mortgage rate in Alabama for a 30-year fixed mortgage is 6.60% as of July 2024, slightly up from June's rate of 6.57%, marking an increase of 3 basis points. If you take out a loan for $250,000 with a 20% down payment, a seemingly minor rate change can impact your budget — just a three basis-point uptick can increase the total cost by $1,426 over the life of the loan, not including additional expenses like property taxes or HOA fees.

Even small changes in mortgage rates can influence the total interest you'll pay. Rates adjust frequently due to economic indicators and government bond yields. Our line chart demonstrates how these rates have trended over the past several months; these changes can affect your monthly repayments.

Current Mortgage Rates in Alabama (Jan to May)

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:

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    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.

    homeowner icon

    Homeowners with mortgages

    Homeowners in Alabama might consider a mortgage refinance if current rates are more favorable than theirs.

Purchase rates and refinance rates are not the same. If you're looking to buy a home in Alabama, the current mortgage rate for a 30-year fixed mortgage stands at 6.60% — but if you're refinancing, the rate climbs to 8.27%. 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 loan types in Alabama]((#al-mortgage-types) 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
5.97%APR6.13%
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INTEREST RATE VS. APR: WHAT'S THE DIFFERENCE?

An interest rate is what you pay each year to borrow money for a mortgage. In Alabama, the average mortgage interest rate for a 30-year fixed mortgage is 6.52%.

The APR, or annual percentage rate, reflects the mortgage interest rate plus any mortgage points and other costs associated with the loan. Alabama's average APR for a 30-year fixed mortgage is 6.60%.

Current Mortgage Rates in Alabama by Credit Score

In Alabama, if you have a strong credit score of 740 or above and make a down payment of 5% to 20%, you’ll see an average APR of 7.44% for a 30-year fixed mortgage. If your credit score drops below 680, the rate will increase to 7.85%.

Your credit score changes the mortgage rates you may get in Alabama. Our interactive table helps you find what rates you might see based on your credit score and down payment amount:

Data filtered by:Results filtered by:
Credit Score Range:
Credit Score Range:680 - 740
Down Payment:
Down Payment:20% or higher
10-year FixedAPR5.85%
15-year FixedAPR6.30%
20-year FixedAPR6.91%
30-year FixedAPR7.16%
5-year ARMAPR7.80%
7-year ARMAPR7.62%

Mortgage Types in Alabama

In July 2024, 30-year fixed-rate VA loans have the lowest average APR for 30-year fixed-rate mortgages in Alabama. Familiarizing yourself with your mortgage options can influence your financial choices. Take a look at this snapshot of loan types for homeowners in Alabama:

Mortgage Option
Definition
Impact on Rates
Current 30-Year APRs in Alabama

Conventional Loans

Conventional loans in Alabama are not insured by government agencies.

Conventional loans may offer lower rates for borrowers with excellent credit.

6.60%

FHA Loans

FHA loans in Alabama are backed by the Federal Housing Administration.

FHA loans might come with lower rates for those with modest credit or smaller down payments.

7.05%

VA Loans

VA loans in Alabama are guaranteed by the Department of Veterans Affairs for eligible veterans.

VA loans can offer competitive rates due to government backing for qualified borrowers.

6.47%

USDA Loans

USDA loans in Alabama are for rural home buyers and backed by the USDA.

USDA loans may provide lower rates due to government backing targeted at rural development.

currently unavailable

Jumbo Loans

Jumbo loans in Alabama are for home prices that exceed conforming loan limits.

Jumbo loans typically have higher rates because they represent a higher risk to lenders.

6.73%

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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, offering stability.
  • Adjustable mortgage rates may provide lower initial payments and can be adjusted later, potentially reducing your monthly mortgage payments when rates drop.

As of July 2024, Alabama's average APR is 6.60% for a 30-year fixed mortgage and 7.40% for a seven-year ARM.

Mortgage Lenders in Alabama

Bank of America, Better and Loan Depot are solid options for securing a mortgage in Alabama. These lenders were chosen for their state availability, accreditation from the Better Business Bureau and offering of homeowner assistance programs. However, there are additional lenders in Alabama that might fit your needs.

The mortgage rate you secure in Alabama can vary depending on the lender you select. Each lender has a different set of mortgage products and loan terms, which includes the interest rates offered. By comparing mortgage rates from several lenders in Alabama, you can find the best possible 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 good lender in Alabama, providing both online and in-person services to fit various needs. It offers a selection of mortgage options, including fixed-rate and adjustable-rate mortgages. You might also consider the affordable loan solution mortgage, which asks for a minimum down payment of 3%. The VA loan option, aimed at veterans and current military members, is a mortgage with no down payment required.

    Customer service hours are Monday through Friday, 8 a.m. to 10 p.m. ET, and Saturday, 8 a.m. to 6:30 p.m. ET. For personalized help, choose from virtual, phone, or in-person channels. Bank of America also provides homeowner’s assistance programs like America's Home Grant® and down payment grants, designed to help you get into your new home with less financial strain.

    Pros

    • Offers special mortgage programs
    • Client payment assistance available
    • Online financial calculators

    Cons

    • Online profile needed to prequalify
    • Credit minimums not disclosed
    Bank of America

  • Loan Depot
    • 3Number of Mortgage Options
    • YesOnline Application
    • A+BBB Rating
    • Monday to Friday, 10 am to 9 pm ETCustomer Service Hours

    If you're exploring mortgage options in Alabama, Loan Depot is a lender you might come across, offering services both online and in-person. You can choose from fixed-rate loans for predictability in your payments or adjustable-rate loans if you're looking for flexibility.

    Loan Depot caters to borrowers with a minimum credit score of 580 for FHA loans. When it comes to down payments, conventional loans start at 5%; FHA loans can go as low as 3.5% if your credit is strong, and you don't need to go beyond 10% even with lower scores. For veterans and eligible USDA loan recipients, zero down payments are required.

    Customer service is available from 10 a.m. to 9 p.m. ET, Monday to Friday. You can reach out through phone or email, whichever suits your preference. Loan Depot also offers help through its Loss Mitigation Assistance program for those in need.

    Pros

    • Offers hardship assistance
    • Interactive mortgage calculator
    • A+ BBB accredited

    Cons

    • No unique mortgage products
    • No weekend customer support
    Loan Depot

  • 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 a mortgage lender that’s making its mark in Alabama, exclusively through its online platform. If you’re keen on a mortgage, you can explore fixed-rate or adjustable-rate options. For a jumbo loan with Better, you'll need a credit score of at least 700. If you're considering conventional loans, the minimum credit score drops to 620, while FHA loans are accessible with credit scores as low as 580.

    When it comes to the initial investment, you’re looking at a minimum down payment of 3% to 5% for conventional loans. If your credit score is below 580, it’s 10% upfront, or 3.5% if your score is resting at 580 or beyond. If you’re buying with someone who won’t live in the home, the down payment increases to 25%.

    Customer service hours are from 8 a.m. to 9 p.m. ET, Monday to Friday, and during the weekend. Better communicates through phone and email, ensuring you have a direct line for your queries. Alabama homebuyers can also take advantage of the Better Real Estate discount, which is a program designed to support homeownership.

    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
    • Does not provide VA or USDA loan options
    • BBB rating at B+ only
    Better

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

Step Up

The Step Up program might be just what you need in Alabama. This support includes down payment help and a favorable 30-year fixed mortgage rate. Income and property limits apply, yet first-time buying status is not mandatory.

Affordability Income Subsidy Grant

The Affordability Income Subsidy Grant is here to support your closing costs with a grant, as long as your funds are low and you qualify by income.

Martergate Coupon Fruits

With Mortgage Credit Certificates, 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 your commonly asked questions to help you stay informed during your home-buying process.

What are the current mortgage rates in Alabama?
How do mortgage rates in Alabama compare to national rates?
How does my credit score impact the mortgage rates I get in Alabama?
Are there any special mortgage programs in Alabama to help homebuyers?
How can I get the best possible mortgage rate in Alabama?
What are today's mortgage refinance rates in Alabama?
How do I calculate my mortgage payments?

About Zachary Romeo

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Zachary Romeo is the Head of Loans and Banking at MoneyGeek, with over 10 years of experience and forthcoming certification as a Commercial Banking and Credit Analyst (CBCA). Previously, he led production teams for some of the largest online informational resources in higher education.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt through people-first content.

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