Alabama Mortgage Calculator
The median home price in Alabama is $220,000. With a 20% down payment at the state's average 30-year fixed rate of 7.12%, your estimated all-in monthly payment (principal, interest, taxes, and insurance) is approximately $1,385. Alabama's property tax rate of 0.41% annually is below the U.S. national average of 1.07%.
A buyer earning Alabama's median household income of $56,000 would dedicate roughly 30% of gross monthly income to housing — moderately stretched by the standard 28% guideline.
Median Home Price
$220,000
Avg 30-yr Rate
7.12%
Property Tax Rate
0.41%/yr
Est. Monthly PITI
$1,385
Mortgage Calculator
Total Monthly Payment
$1,385.32
Loan Amount
$176,000
Total Paid
$426,654
Total Interest
$250,654
How to Get a Mortgage in Alabama
- 1 Check your credit score. In Alabama, most conventional lenders require 620+; FHA allows 580+ with 3.5% down.
- 2 Save for your down payment. On a $220,000 Alabama home, 20% down is $44,000 — avoiding PMI and reducing your monthly payment.
- 3 Get pre-approved from 2–3 lenders. Rates in Alabama average 7.12%, but shopping lenders often saves 0.25–0.5%.
- 4 Account for closing costs — typically 2–5% of the loan amount, or $5,280–$8,800 on a median Alabama purchase.
- 5 Budget for ongoing costs: Alabama property taxes average 0.41%/yr ($902/yr on the median home), plus homeowner's insurance averaging $1.500/yr.
Monthly Cost Breakdown — Median Alabama Home
Excludes HOA fees, PMI (not required with 20% down), and utilities.
Alabama Mortgage FAQs
What is the average home price in Alabama?
The median home price in Alabama is $220,000 (2024 estimate). With a typical 20% down payment of $44,000, a buyer would finance $176,000 at a 30-year fixed rate.
What are property taxes like in Alabama?
Alabama has an average effective property tax rate of 0.41% of assessed home value. On a $220,000 home, that's approximately $902 per year ($75/month) — below the national average of 1.07%.
How much income do I need to buy a home in Alabama?
To keep housing costs at or below the recommended 28% of gross monthly income on a median-priced Alabama home, you'd need to earn roughly $59,371 per year. The state's median household income is $56,000, meaning the typical household allocates about 30% of gross income to housing — moderately stretched.
What is the average mortgage rate in Alabama?
The average 30-year fixed mortgage rate in Alabama is approximately 7.12% (2024 average). Rates vary by lender, credit score, loan-to-value ratio, and loan type. Borrowers with credit scores above 740 typically qualify for the best available rates.
Related:
National Mortgage Calculator Loan Calculator Investment Return Calculator