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If you’re planning to buy a home in Alabama, you’ll want to ensure you are getting the best mortgage rate possible. Your mortgage rate will depend on a wide variety of factors, including your credit score, how much of a down payment you can put down, your debt-to-income ratio, and your level of income.
You can help yourself get the best mortgage rate in Alabama by checking your credit before you apply for a home loan, making sure all of your documentation is in order, and getting preapproved by a reputable mortgage lender.
Here’s a quick look at current Alabama mortgage rates:
|Loan Program||Mortgage Rate||APR*||1 Day Change|
|Conventional 30 year fixed||6.578%||6.653%||-0.11%|
|Conventional 20 year fixed||6.375%||6.481%||Unchanged|
|Conventional 15 year fixed||6.073%||6.192%||+0.04%|
|Conventional 7 year ARM||7.425%||7.957%||Unchanged|
|Conventional 5 year ARM||7.051%||7.899%||-0.12%|
|FHA 30 year fixed||5.766%||6.572%||-0.07%|
|VA 30 year fixed||5.75%||5.817%||-0.38%|
|VA 15 year fixed||5.557%||5.781%||-0.34%|
|VA 5 year ARM||6.273%||6.942%||+0.27%|
Thinking about buying a home in Alabama? This could be a great time to find your dream home in the Yellowhammer State. Here’s what you need to know:
Start by figuring out where you want to live. Alabama is home to almost 5 million people, and one in six live in the state’s top five biggest cities:
Next, find out how much home you can afford. Alabama ranks 38th in US homes for sale at average price, and 31st for homes over $1,000,000. Getting preapproved can help you know what your budget is before you go house hunting.
If you are a first-time home buyer, you may be able to qualify for assistance through a program administered by the Alabama Housing Finance Authority (AHFA.)
The Step Up program provides 3% down payment assistance for FHA or conventional loans. You’ll get a 30-year fixed-rate first mortgage, with the down payment secured by a 10-year second mortgage, bundled into one mortgage payment a month.
The Affordable Income Subsidy Grant can provide you with help to cover closing costs, and can be combined with down payment assistance through Step Up.
To qualify for these first-time home buyer programs in Alabama, you’ll need:
If you need to refinance a home in Alabama to take advantage of favorable Alabama mortgage rates, you can do any of the following:
You may qualify for a streamlined refinance if you have a certain type of loan. Ask your lender for more information.
Use our free mortgage calculator tools to estimate your monthly mortgage payments based on your unique loan scenario. See how your monthly payment changes by making updates to your home price, down payment, interest rate, and loan term.
Wondering what your monthly mortgage payment might be? Plug in your data to get an instant mortgage payment estimate.
Military service can mean eligibility for a no-down payment mortgage. Find out if you qualify for a VA home loan.
Designed for first-time and low-income homebuyers, an FHA loan could put you on the path to home ownership fast.
Seeking to refinance? Find out how much you can save in interest over the term of your home loan by refinancing now.
Each step-by-step guide is designed to shepherd you through a process from start to finish. Know what to expect and how to proceed, no matter where you are in your home buying journey.