Alabama Mortgage Calculator
Mortgage is next to the only affordable option for low to average income home buyers in many parts of Alabama and the rest of the United States. On this page we offer a convenient Alabama home loan calculator to gauge your potential expenses, and up-to-date answers to several frequently asked questions concerning buying a house in Alabama.
| Total principal & interest | $0 |
| Monthly payment | $0 |
| Total interest paid | $0 |
| Payoff date | Date |
Detailed payment info
| Date | Payment | Principal Paid | Interest Paid | Remaining Balance |
|---|
Today's Mortgage Rates Trends in Alabama
| Product | Rate | 1w change | APR | 1w change |
|---|---|---|---|---|
| 30-year fixed | 7.136 | 0% | 7.158 | 0% |
| 20-year fixed | 7.025 | 0% | 7.054 | 0% |
| 15-year fixed | 6.301 | 0% | 6.336 | 0% |
| 10-year fixed | 6.347 | 0% | 6.397 | 0% |
| 30-year fixed-rate FHA | 6.759 | 0% | 7.893 | 0% |
| 30-year fixed-rate VA | 6.76 | 0% | 6.997 | 0% |
- 30 Year Fixed
- 20 Year Fixed
- 15-Year Fixed
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Alabama Mortgage Calculator
A mortgage is often the most feasible option for many prospective homeowners in Alabama with low to average income. This page provides a comprehensive Alabama Mortgage Calculator to help you estimate your potential expenses. We also offer current and relevant answers to frequently asked questions about purchasing a house in Alabama using our Mortgage Calculator.
Best mortgage lenders in Alabama
The most sought-after mortgage lenders in Alabama have a nationwide presence. These include such recognizable names as Advanced Mortgage and Investment Co, Rocket Mortgage, and Paddio®. These lenders offer a variety of loan options, including fixed-rate mortgages, which you can calculate using our Alabama Mortgage Calculator.
How to Use Our Mortgage Calculator
Our Mortgage Calculator is a valuable tool for detailed planning of your future expenditures. Let's delve into each field to gain a better understanding of the mortgage in Alabama.
- The first factor to consider is the home price and the amount you plan to spend on your future property. The down payment is a portion of this price that you need to pay upfront. To avoid expensive insurance, a down payment of at least 20% is recommended for a conventional loan. The remaining amount constitutes the principal (e.g., 80% of the home price given a 20% down payment).
- The loan term is the duration over which you will repay your mortgage through scheduled payments. Fixed-rate conforming loans can last up to 30 years, while adjustable-rate options typically have shorter terms.
- The interest rate is a fixed or variable percentage of the principal that you must pay throughout the loan. It's important to note that you are charged an annual percentage rate (commonly abbreviated as APR), which is not the same as the interest rate. Although the interest rate constitutes most of the APR value, the latter also includes various fees (e.g., origination fee, closing costs, insurance payments, etc). For a more accurate assessment, the interest rate used for these calculations is based on the current mortgage rates in Alabama, given a $400,000 home price and a 10% down payment.
Alabama Housing Market 2023
The previous year has witnessed a significant surge in the market value of housing in Alabama. This trend, amplified by the COVID pandemic, continues a longstanding pattern. However, the pace of growth has slowed slightly compared to the previous year. Both purchase and refinance rates have been steadily increasing and are projected to rise further shortly. Use our Mortgage Calculator to plan your finances accordingly.
Median property taxes in Alabama counties
The property tax is another important thing to consider when selecting your future house. Many lenders insist on setting up a mortgage escrow account to ensure the borrower’s keeping up with the tax and insurance costs.
| County | Avg. property tax rate | Avg. home value |
|---|---|---|
| Barbour County | $298 | $89,300 |
| Bibb County | $210 | $105,500 |
| Blount County | $352 | $122,200 |
| Bullock County | $308 | $66,800 |
| Butler County | $306 | $88,800 |
| Calhoun County | $399 | $117,700 |
| Chambers County | $259 | $86,400 |
| Cherokee County | $360 | $116,300 |
| Chilton County | $385 | $98,600 |
| Clarke County | $279 | $93,500 |
| Clay County | $210 | $89,300 |
| Cleburne County | $337 | $111,800 |
| Coffee County | $415 | $147,800 |
| Colbert County | $355 | $108,500 |
| Conecuh County | $314 | $76,100 |
| Coosa County | $212 | $87,300 |
| Covington County | $265 | $96,200 |
| Crenshaw County | $206 | $76,800 |
| Cullman County | $291 | $123,700 |
| Dale County | $300 | $108,000 |
| Dallas County | $288 | $80,800 |
| DeKalb County | $269 | $114,500 |
| Elmore County | $367 | $158,500 |
| Escambia County | $336 | $94,500 |
| Etowah County | $372 | $115,200 |
| Franklin County | $282 | $87,600 |
| Geneva County | $224 | $87,800 |
| Greene County | $242 | $67,700 |
| Hale County | $217 | $88,800 |
| Henry County | $334 | $112,600 |
| Houston County | $359 | $138,800 |
| Jackson County | $269 | $105,000 |
| Jefferson County | $802 | $160,200 |
| Lauderdale County | $456 | $144,800 |
| Lawrence County | $281 | $98,700 |
| Lee County | $693 | $160,700 |
| Limestone County | $378 | $158,500 |
| Lowndes County | $279 | $63,000 |
| Macon County | $336 | $77,100 |
| Madison County | $667 | $182,400 |
| Marengo County | $265 | $88,100 |
| Marshall County | $388 | $121,600 |
| Mobile County | $601 | $131,200 |
| Monroe County | $244 | $88,000 |
| Montgomery County | $435 | $128,200 |
| Morgan County | $427 | $143,000 |
| Pickens County | $250 | $91,800 |
| Pike County | $320 | $109,200 |
| Randolph County | $301 | $85,200 |
| Russell County | $407 | $114,700 |
| Shelby County | $905 | $207,300 |
| St. Clair County | $391 | $145,300 |
| Sumter County | $250 | $69,500 |
| Talladega County | $340 | $103,200 |
| Tallapoosa County | $292 | $107,000 |
| Tuscaloosa County | $479 | $167,400 |
| Walker County | $232 | $104,100 |
| Washington County | $235 | $83,900 |
| Wilcox County | $246 | $81,600 |
| Winston County | $241 | $82,900 |
Source: American Communities Survey 2016, U.S. Census
How do I calculate my mortgage payment?
Our Mortgage Payment Calculator is a comprehensive tool for meticulous planning of your future expenditures. Let’s delve into each field to gain a better understanding of the mortgage parameters in Alabama. The most convenient way to do this is by using our calculator. It's powered by a simple formula, which you can also use to calculate the amount to be paid manually:
M = P*i(1 + i)^n / (1 + i)^n – 1
M – estimated monthly mortgage payment;
P – principal;
I – monthly interest rate (to determine it, divide your annual mortgage rate by 12);
N – the loan term expressed in months (in other words, the overall number of monthly payments)
Suppose you are applying for a 15-year mortgage loan with a fixed 6.99% APR (which is .0699 as a unit fraction). The house costs $500k, with 10% ($50,000) to be paid down. The principal amount (P) will be equal to 90% of the initial home cost ($500,000 – $50,000 = $450,000).
I = .0699 % / 12 = .005825%.
Finally, let’s convert the loan length from years to months: N = 15 * 12 = 180.
M ($) = 450,000*.005825(1 + .005825)^180 / (1 + .005825)^180 – 1 ≈ 4042.
So, you are going to pay about $4042 a month.
It is important to note that the calculated M value is approximate, as no extra fees are taken into account. Use our Alabama Mortgage Tax Calculator to get a more accurate estimate.
Tips for first-time home buyers in Alabama
Firstly, several federal agencies such as USDA, FHA, and VA guarantee loans for selected borrowers. Many first-time homebuyers can find options that most fit their budget using the Alabama Mortgage Calculator.
In addition to these government-guaranteed programs, it's worth considering some offers from UHC (Alabama Housing Corporation) available to Alabamans. Specifically, first-time home buyers can apply for FirstHome – a down payment and closing costs assistance program, if they qualify for an FHA loan and their FICO score is at least 660. This option, which can be calculated using the Alabama Mortgage Payment Calculator, covers up to 6% of the loan amount toward the down payment and/or the closing costs. It's important to note that this option comes in the form of a 30-year fixed-rate second loan only.
For first-time homebuyers, here are some valuable tips:
- Prioritize pre-approval. This step enhances your creditworthiness in the eyes of home sellers. It's advisable to secure pre-approval letters from not just one, but at least two or three different lenders. This step will give you a broader perspective on your borrowing capacity.
- Make a thorough comparison of different mortgage rates. Opt for at least three lenders for a comprehensive comparison. Remember, the more options you explore, the better your chances of finding the best rate.
- Utilize tools like the Alabama Mortgage Calculator to do preliminary calculations based on the amount you have been pre-approved for. This will help you plan your future expenses effectively.
- Start setting aside funds for a down payment as early and as much as possible. A substantial down payment will decrease the principal amount, which, in turn, can reduce your potential expenses. Therefore, it's crucial to start saving in advance.
- If you're eligible for a VA loan, consider this option as your first choice. VA loans often offer favorable terms to eligible borrowers.
- Don't overlook government-backed plans and local assistance programs. There can be attractive offers available – make sure you're not missing out.
- If possible, pay off previous debts. This step will improve your debt-to-income ratio and potentially increase your borrowing capacity.