Alabama Mortgage Rates

Compare Alabama mortgage rates and choose the best option for your needs.

By Myfin Team
Updated April 16, 2024
Loan Type
State
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Purchase Price
$
Down payment
$
%
Loan term
  • 10-Year Fixed
  • 15-Year Fixed
  • 20-Year Fixed
  • 30-Year Fixed
  • 40-Year Fixed
  • 1-Year ARM
  • 3-Year ARM
  • 5-Year ARM
  • 7-Year ARM
  • 10-Year ARM
  • 3-Year ARM I/O
  • 5-Year ARM I/O
  • 7-Year ARM I/O
  • I/O = Interest only
Credit score
  • 740-850
  • 720-739
  • 700-719
  • 680-699
  • 660-679
  • 640-659
  • 620-639
  • 350-620
EMPTY
More options
Points
  • Up to 3
  • 0
  • 0-1
  • 1-2
Property type
  • Single Family
  • Condo (Less than 4 stores)
  • Condo (More than 4 stores)
  • 41 - 2 units
  • 42 - 3 units
  • 43 - 4 units
Property use type
  • Primary Residence
  • Second Home
  • Investment
EMPTY
EMPTY
Showing 5 mortgages
NMLS#401822
APR
6.985%
Payment
$2,103/mo
Rate
6.875%
Fees
$3,600
Includes 0.125 Points ($400)
Details
30-Year Fixed;
Purchase
On partner's site
Get details
NMLS#447490
APR
7.171%
Payment
$2,156/mo
Rate
7.125%
Fees
$1,472
Includes 0.46 Points ($1,472)
Details
30-Year Fixed;
Purchase
On partner's site
Get details
NMLS#Not a Lender
  • Premier resource for one-stop lender shopping
  • Get personalized purchase & refinance options
  • Find out what you're eligible for fast
On partner's site
Get details
NMLS#491986
  • Minimum 620 credit score needed to prequalify
  • 0% down USDA loan for rural homebuyers
  • 97% of borrowers would recommend to friends or family
On partner's site
Get details
NMLS#1907
  • $0 down payment for Veterans homebuying with a VA Loan
  • Secure preapproval quickly with 24/7 access
  • Tap into a network of 9,000+ Veteran-friendly real estate agents
  • 350,000+ verified customer reviews, 4.8/5 average rating
On partner's site
Get details
Data provided by Icanbuy. Payments do not include amounts for taxes and insurance premiums. The actual payment obligation will be greater if taxes and insurance are included. More information on rates and product details.
For example, if you apply for a 15-year $400,000 mortgage with an interest rate of 6.15% and a down payment of 10% you would receive $360,000 and make 180 payments of $3,067.14. The total amount paid would be $552,084.

Today's Mortgage Rates Trends in Alabama

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.

FAQ

Whether I Qualify for a Mortgage in Alabama or Not?

The qualification requirements for mortgage borrowers may vary slightly among different lending entities, but in most cases, they include having a credit score of 620 or higher and a debt-to-income ratio of at least 50%. Additionally, borrowers are required to provide evidence of their financial capacity and credibility, which may include tax and account statements, employment status verification, credit reports, and other relevant documentation. Lastly, borrowers must be able to make the required down payment as specified by the lender. These requirements help lenders assess the borrower's ability to repay the mortgage loan and ensure they meet the necessary criteria for obtaining financing.

What is the maximum mortgage duration in AL?

In the US, the maximum length of a mortgage loan is typically 30 years. While there are rare exceptions with unqualified mortgages that may have terms reaching up to 40 years, it's important to note that these cases are infrequent, and the terms of such loans are often less favorable. It's more common for borrowers to opt for mortgage loans with a 30-year term, as it provides a balance between manageable monthly payments and a reasonable repayment timeline. It's advisable for borrowers to carefully consider their financial situation and long-term goals when choosing the length of their mortgage loan.

What is the mortgage rate right now in Alabama?

Providing a simple answer to this question is not possible, as the final Annual Percentage Rate (APR) for a mortgage loan is determined on an individual basis for each borrower. However, average rates can be considered for each US state. In Alabama, the current average mortgage rate for 30 years is 6.58%, while for a 15-year term, it is 5.98%. It's important to note that these rates are subject to change and can vary depending on various factors, including the borrower's creditworthiness, loan amount, and market conditions. Prospective borrowers should consult with lenders to obtain personalized rate quotes based on their specific circumstances.