Alabama Mortgage Rates
Compare Alabama mortgage rates and choose the best option for your needs.
- Minimum 620 credit score needed to prequalify
- 0% down USDA loan for rural homebuyers
- 97% of borrowers would recommend to friends or family
- Premier resource for one-stop lender shopping
- Get personalized purchase & refinance options
- Find out what you're eligible for fast
- 0% Down VA Loans for Veterans & Military
- Secure preapproval quickly with 24/7 access
- Competitively low VA rates, no PMI required
- Over 300,000 verified 5-star reviews
Today's Mortgage Rates Trends in Alabama
| Product | Rate | 1w change | APR | 1w change |
|---|---|---|---|---|
| 30-year fixed | 7.641 | -0.52% | 7.664 | -0.52% |
| 20-year fixed | 7.515 | -1.5% | 7.544 | -1.5% |
| 15-year fixed | 6.937 | -0.49% | 6.973 | -0.49% |
| 10-year fixed | 6.884 | -0.06% | 6.934 | -0.06% |
| 30-year fixed-rate FHA | 7.258 | -0.36% | 8.375 | -0.31% |
| 30-year fixed-rate VA | 7.173 | -1.87% | 7.416 | -1.83% |
- 30 Year Fixed
- 20 Year Fixed
- 15-Year Fixed
Mortgage in Alabama: Top Lenders in 2024
Are you interested in getting information about the top-rated mortgage lenders in Alabama? We'll provide you with a guide that reviews and evaluates these lenders, helping you identify the ones that are worth considering. Mortgage loans can be a convenient option for purchasing various types of properties, including residential estates and apartments. However, it's important to note that the terms and conditions offered by different lenders can vary significantly. You can also use our mortgage calculator to estimate your future expenses.
AL Mortgage Lenders Comparison
All of the lenders we have reviewed are reputable companies with a strong track record and competitive rates. To provide you with the most comprehensive information, we will compare them based on key criteria such as the APR (Annual Percentage Rate), the minimum down payment requirements, and other minimum requirements. This will help you make an informed decision and choose the lender that best fits your needs.
Advanced Mortgage and Investment Co
Advanced Mortgage & Investment Company (AMIC) is a mortgage lender based in Alabama that was established in 1999. Since 2003, it has expanded its services to include online mortgage lending. AMIC currently operates in several states, including Alabama, California, Colorado, Florida, Louisiana, Mississippi, and Tennessee. According to its website, it has closed a total of $8 billion in loans as of 2022.
AMIC offers a range of options for both home purchases and refinancing. These options include conventional fixed-rate mortgages for various terms (10, 15, 20, 25, or 30 years), as well as adjustable-rate mortgages. It also provides government-insured loan programs such as FHA, VA, and USDA loans. To qualify for a conventional loan, a minimum credit score of 620 is required.
| Pros: | Cons: |
|---|---|
| Established Presence. AMIC has been in operation since 1999 and has maintained a strong online presence since 2003, demonstrating its experience and commitment to the mortgage industry. | Limited Coverage. While AMIC operates in several states, its coverage is not nationwide. Borrowers outside of the states they serve will have to find alternative mortgage lenders. |
| Wide Coverage. AMIC operates in multiple states, including Alabama, California, Colorado, Florida, Louisiana, Mississippi, and Tennessee, offering their services to a diverse range of borrowers. | Limited Information. Without further details, it is difficult to assess additional potential cons such as specific fees, customer reviews, or potential limitations in loan programs offered by AMIC. It is recommended to conduct further research and gather more information before making a decision. |
| Loan Options. AMIC provides a variety of mortgage options, including conventional fixed-rate mortgages for different terms, adjustable-rate mortgages, and government-insured loan programs such as FHA, VA, and USDA loans. This allows borrowers to choose the option that best suits their needs. | |
| Competitive Rates. AMIC aims to offer reasonable rates to borrowers, helping to make their mortgages more affordable and competitive in the market. | |
| Track Record. With $8 billion in closed loans, AMIC has a solid track record, indicating its ability to successfully assist borrowers in obtaining mortgage financing. |
Quicken Loans Mortgage
Quicken Loans is the previous brand name of Rocket Mortgage, the US-wide leader in capitalization across consumer lenders, adopted in 1999. With the rebranding in 1999, Quicken Loans continues to offer the same options, terms, and services as Rocket Mortgage. Their range of mortgage products includes conventional mortgages (with fixed or adjustable rates), jumbo loans, home equity loans, HELOCs, and government-insured programs such as FHA and VA loans for both home purchase and refinancing purposes.
For conventional loans, a minimum credit score of 620 is required to qualify. However, it's important to note that the advertised APR for a 30-year fixed-rate mortgage with Quicken Loans/Rocket Mortgage is 7.199%, which may be higher compared to similar offers from other lenders. Borrowers should carefully consider the APR and compare it with other options to ensure they are getting competitive rates.
Quicken Loans/Rocket Mortgage operates in all states, including Washington D.C., providing nationwide coverage for borrowers. Their long-standing presence and extensive reach make them a convenient choice for many homebuyers.
It's recommended that borrowers review the terms, rates, and fees associated with Quicken Loans/Rocket Mortgage, and compare them with other lenders, to make an informed decision that best suits their financial needs.
| Pros: | Cons: |
|---|---|
| Wide Range of Loan Options. Quicken Loans/Rocket Mortgage offers a comprehensive selection of mortgage options, including conventional mortgages, jumbo loans, home equity loans, HELOCs, and government-insured programs like FHA and VA loans. This allows borrowers to find a loan that suits their specific needs and preferences. | Higher Advertised APR. The advertised APR for a 30-year fixed-rate mortgage with Quicken Loans/Rocket Mortgage is 7.199%, which may be higher compared to some other lenders in the market. Borrowers should carefully consider the overall cost and compare rates with other lenders to ensure they are getting the most competitive terms. |
| Established Reputation. As the US-wide leader in capitalization across consumer lenders, Quicken Loans/Rocket Mortgage has a strong reputation in the mortgage industry. Their longevity and success demonstrate their ability to provide reliable and competitive mortgage services. | Credit Score Requirement. Quicken Loans/Rocket Mortgage requires a minimum credit score of 620 for conventional loans. Borrowers with lower credit scores may face challenges in qualifying for a loan with this lender. |
| National Coverage. Quicken Loans/Rocket Mortgage operates in all states, as well as Washington D.C., making their services accessible to borrowers nationwide. | |
| Streamlined Online Experience. Quicken Loans/Rocket Mortgage is known for its user-friendly online platform, allowing borrowers to easily apply for a mortgage, track the progress of their application, and communicate with their loan officer. This digital convenience can save time and simplify the mortgage process. |
Paddio®
Paddio® a mortgage lender with its headquarters located in Springfield, Missouri. It provides a range of loan options including purchase loans, refinance loans, and government-backed loans such as FHA, VA, and USDA loans. With Paddio, you have the opportunity to make a down payment as low as 3.5% for certain loan programs like Home Ready, Home Possible, or FHA loans. For conventional loans, which are a popular financing option, the down payment typically ranges from 3% to 20%.
It's important to note that Paddio mortgage services are not available in the states of New York (NY), Nevada (NV), New Jersey (NJ), and Utah (UT). If you are located in one of these states, you may need to consider alternative mortgage lenders.
When considering Paddio as a lender, it's recommended to review their loan terms, rates, and fees, and compare them with other lenders to ensure they meet your specific requirements.
| Pros: | Cons: |
|---|---|
| Low down payment options. | Not available nationwide. |
| Variety of loan types offered. |
Average Mortgage Rate in Alabama from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in Alabama.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in Alabama
| Criteria | Amount, $ |
|---|---|
| The median home value in Alabama | $188,557 |
| The income required to buy the median priced home in Alabama | $30,894 |
| The monthly mortgage payment required to buy the median priced home in Alabama | $715 |
| The median household income for Alabama | $56,553 |
Things to Consider When Choosing a Mortgage Lender
Taking out a mortgage loan is a significant commitment that spans 15 to 30 years, and it requires careful consideration before agreeing with any particular lender. There are several crucial factors to keep in mind when selecting a lending institution.
Type of Lender
In general, there are two main options to choose from when it comes to mortgage lenders: traditional banks and online mortgage lenders. Banks often offer competitive interest rates, but they typically have stricter credit requirements. The approval process can take longer, and meeting their eligibility criteria may be more challenging. On the other hand, online lenders operate more efficiently, with faster approval times, and their requirements for homebuyers are generally less stringent.
APR and Fees
Like any other loan, a mortgage comes with associated costs beyond the interest rate. These costs include additional fees such as origination fees, mortgage insurance fees, closing costs, and more. As of the current time, the average mortgage rate for a 30-year fixed-rate loan in Alabama is 6.58%.
Terms and Conditions
In addition, it's important to consider the minimum down payment required, which can range from 0% to 20% depending on factors such as the loan type and your current status (military, employed, self-employed, etc.). Another key parameter to consider is the loan term, which refers to the total length of the loan. Common options include 15-year and 30-year terms.
What mortgage lender is the best in Alabama?
Choosing a mortgage lender in Alabama can be challenging due to the extensive list of reliable options available. It ultimately depends on your specific needs and preferences. One notable industry leader is Rocket Mortgage, which had a loan volume of $11.5 billion in 2021. However, it's always a good idea to explore and compare different lenders before making a decision. You can consult our list of recommended lenders to make an informed choice that aligns with your requirements.
First-Time Homebuyer Programs in Alabama
First-time homebuyers in Alabama have access to various government programs aimed at improving mortgage affordability. These programs include:
- Federal Housing Administration loan program. Under this program, buyers receive insurance from the federal government, with the insurance fee included in the overall loan cost. FHA loans offer several benefits, including a low-interest rate and lenient credit requirements. Borrowers can qualify with a FICO score as low as 500 and a debt-to-income ratio of 50%.
- USDA loan program. Designed for individuals living in rural areas, the USDA loan program provides mortgage loans with a zero down payment option. However, applicants must ensure that their annual income does not exceed 115% of the average income in their region.
- VA loan programs. Insured by the Department of Veteran Affairs, VA loan programs are available to former military personnel and their spouses. These programs offer favorable terms and benefits to eligible borrowers.
Pre-Approval: What Does It Mean?
Preliminary approval is an important step that confirms the credibility of a prospective homebuyer. It serves as an assurance to home sellers that lenders are prepared to approve a mortgage loan for the buyer. To obtain pre-approval, individuals are required to provide documentary evidence of their financial capacity. This typically includes earning statements, account statements, a W2 form, or alternative proof of income for a minimum of two years. In addition, filling out the Uniform Residential Loan Application form is necessary to complete the pre-approval process. By going through this process, homebuyers can establish their credibility and readiness to proceed with a mortgage loan.