Alabama Mortgage Rates & Home Prices (2026)
Median price: $216,000 · Avg. rate: 6.88%
Alabama Market Overview
$216,000
Median Home Price
6.88%
Avg. 30-Yr Rate
0.41%
Property Tax Rate
69.8%
Homeownership Rate
Alabama offers some of the most affordable housing in the nation, with median home prices well below the national average. The Alabama Housing Finance Authority provides several assistance programs for first-time buyers including down payment grants up to $10,000.
Estimated Monthly Payment
Median home in Alabama (20% down, 30-yr fixed)
$1,300/mo
Principal & Interest$1,136
Property Taxes$74
Home Insurance (est.)$90
Total Monthly (PITI)$1,300
Based on a $216,000 home with 20% down ($172,800 loan) at 6.88%. Does not include PMI, HOA, or other fees.
First-Time Buyer Programs in Alabama
- Step Up Program
- Alabama Housing Finance Authority Down Payment Assistance
- Mortgage Credit Certificate
Contact your state's Housing Finance Agency for current program availability and requirements.
Rate Comparison: AL Rates
30-Year Fixed6.88%
15-Year Fixed6.12%
5/1 ARM (est.)6.13%
FHA 30-Year6.73%
VA 30-Year6.63%
Rates are estimates based on state averages and may vary by lender and borrower qualifications.
Frequently Asked Questions
Key Stats: AL
FHA Loan Limit$472,030
Median Income$56,950
Cost Index0.82x