Alabama Mortgage Rates
Compare Alabama mortgage rates and choose the best option for your needs.
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Today's Mortgage Rates Trends in Alabama
|Product||Rate||1w change||APR||1w change|
|30-year fixed-rate FHA||7.079||3.23%||8.201||2.68%|
|30-year fixed-rate VA||7.086||3.4%||7.328||3.34%|
- 30 Year Fixed
- 20 Year Fixed
- 15-Year Fixed
Mortgage in Alabama: Top Lenders in 2023
Willing to buy a home in Alabama State? The easiest way to do so is to use a mortgage loan, which is effective irrespective of what type of property you are searching for – a residential estate or an apartment. However, the home loan terms offered by different mortgage lenders can vary greatly (use our mortgage calculator to estimate your future expenses). In the framework of this guide, we’ll review some of the top-rated lenders and try to find out which ones are worth considering.
AL Mortgage Lenders Comparison
All the lenders reviewed are trustworthy companies with reasonable rates and solid track records. To give you the most detailed information, we’ll compare them by several key criteria – an APR, the minimal down payment, minimal requirements, and so on.
Advanced Mortgage and Investment Co
Advanced Mortgage & Investment Company (AMIC) is an Alabama-based mortgage lender established in 1999. Since 2003, it has maintained a strong online presence. The states currently covered are Alabama, California, Colorado, Florida, Louisiana, Mississippi, and Tennessee. Its website boasts of $8 billion in total closed loans as of 2022.
The available options cover purchase and refinancing, including conventional fixed- (for 10, 15, 20, 25, or 30 years) and adjustable-rate, government-insured FHA, VA, USDA programs. The required credit score is at least 620 for a conventional loan.
|A wide range of loan options available.||No rate information on their website.|
|The trustworthiness of the company is confirmed by its membership in the National Association of Mortgage Brokers.||Only works in 7 states.|
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. As such, you receive the same options, terms, and services as with the latter. These range from simple conventional mortgages (with fixed or adjustable rates), to jumbo loans, home equity, HELOCs, and federal-insured programs (FHA and VA), available for purchase and refinancing.
Conventional loans require at least a 620 credit score. The advertised APR for a 30-year fixed-rate mortgage is 7.199%, which is on the higher side as far as similar offers are concerned. The lender operates in all states, as well as Washington D.C.
|High availability.||No construction loans.|
|Easy application process.||Rates above the market average.|
|Plethora of experience.|
Paddio® is a mortgage lender headquartered in Springfield, Missouri. The lender offers purchase, refinance, FHA, VA, USDA loans. Your down payment could be as low as 3.5% for a Home Ready, Home Possible or FHA loan. Conventional loans are a very common financing option and usually require a 3 to 20% down payment. Paddio mortgage services are not available in NY, NV, NJ, UT.
|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
|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
A mortgage loan implies undertaking a serious commitment for a term of 15 through 30 years. So you need to think twice before signing an agreement with this or that lender. There are some core aspects to consider when choosing a lending entity.
Type of Lender
Basically, there are two popular options – banks and online mortgage lenders. Banks frequently offer attractive rates but they tend to practice strict credit checks. The approval time is longer, and eligibility criteria are quite hard to comply with. Online lenders work much faster, and their requirements for homebuyers are not too severe.
APR and Fees
Every loan has its cost, and mortgage is no exception. This cost is more than just an interest rate. It also includes extra fees, such as the origination fee, mortgage insurance fee, closing costs, etc. As of writing, for a fix-rated 30-year loan, the average mortgage rate in Alabama is 6.58%.
Terms and Conditions
Here, you need to consider the minimum size of a down payment, which often varies from 0% to 20% depending on the loan type, your current status (military, employed, self-employed, etc.). Another important parameter is the lifespan of the loan, which is its total length. Common options are 15 and 30 years.
What Mortgage Lender is the Number One in Alabama?
The list of reliable AL mortgage lenders is extensive, so it's hard to give an unambiguous answer to this question. Everything depends. For example, one of the industry leaders is Rocket Mortgage with a loan volume of $11.5 billion for the year 2021. To take your pick wisely, check our list of recommended lenders.
First-Time Homebuyer Programs in Alabama
Buying a home for the first time is quite challenging. Happily, residents of Alabama can take advantage of some governmental programs aimed at raising mortgage affordability.
- Federal Housing Administration loan program. In its framework, a buyer gets insurance from the federal government. The fee for this insurance is included in the total cost of the future loan. In return for this, the homebuyer gets some serious benefits: a low interest rate and minimal credit requirements. Thus, his FICO score can be as low as 500, and the debt to income ratio – just 50%.
- USDA loan program. It is oriented toward those living in rural areas. The participants of this program can get a mortgage loan with a zero down payment. However, their annual income must not exceed 115% of the average income in this region.
- VA loan programs. They are insured by the Veteran Affairs Department. This mortgage option is available to former militaries or their spouses.
Pre-Approval: What Does It Mean?
Preliminary approval is a sort of confirmation of a prospective homebuyer’s credibility. It lets home sellers know that lenders are ready to approve a mortgage loan to the buyer. To get a pre-approval one needs to provide documentary evidence of his paying capacity. A typical document set includes earning statements, account statements, a W2 form, or an alternative proof of income for at least 2 years. Additionally, it’s necessary to fill in the Uniform Residential Loan Application form.