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Current Alabama Mortgage Rates

Author: Finance Editors

 

See below the latest Alabama mortgage rates for fixed loans (30 year, 20, 15, 10 FHA, VA and Jumbo) plus variable rates (10, 7, 5, 3 year). Also see how Alabama compares nationally, and main lending options available across the state. Buying a home in Alabama could be easier with today’s mortgage rates. 

 
Updated: July 14, 2026
 

 
 

Current Mortgage Rates in Alabama –

 

The table below shows today’s home purchase mortgage rates for Alabama, organized by credit score and lender type:

 
  Credit Score Satisfaction
 720 - 850690 - 719620 - 689 
Nationally6.41%6.46%6.51%
Alabama6.32%6.37%6.42%
Credit Unions5.92%5.97%6.12%8.3/10
Online lenders6.02%6.07%6.22%8.3/10
Banks6.32%6.37%6.42%8.3/10
30 year fixed6.32%6.37%6.42%
30 year fixed FHA6.59%6.64%6.69%
30 year fixed VA6.03%6.08%6.13%
30 year fixed Jumbo6.43%6.67%6.86%
20 year fixed6.33%6.38%6.43%
15 year fixed5.90%5.95%6.00%
10 year fixed5.44%5.49%5.54%
3 year ARM4.27%4.32%4.37%
5 year ARM6.38%6.43%6.48%
7 year ARM6.48%6.53%6.58%
10 year ARM6.32%6.37%6.42%
Satisfaction8.3/108.1/107.4/10 

Source: MFP’s Community Home Purchase Rates Survey from the last 30 days.

 
 
 
 
 
 

How Alabama Compares to National Averages

 
  • Alabama mortgage rates (6.32% for best credit scores) are slightly below national averages (national average: 6.41%).
  • Credit unions are more competitive: In Alabama, credit unions offer 5.92%, banks 6.32%, online lenders 6.02%.
 
 
 

Mortgage Options in Alabama

 
  • 30 year fixed: 6.32% - most popular long-term option for predictable payments
  • 20 year fixed: 6.33% - balance between payment size and interest savings
  • 15 year fixed: 5.90% - lower total interest cost for borrowers building equity faster
  • 10 year fixed: 5.44% - shortest fixed-term option with competitive rates
  • 10 year variable: 4.27% - Offers a longer initial period with a variable rate...
  • 7 year variable: 6.38% - A mid-term variable option...
  • 5 year variable: 6.48% - Shorter-term variable mortgage...
  • 3 year variable: 6.32% - Quick-adjusting mortgage...
  • FHA mortgage: government-backed with flexible credit requirements
  • VA mortgage: exclusive to veterans and military members with competitive rates
 
 
 

Alabama Metro Mortgage Rates*

 
Metro / City 30-Year Fixed APR 15-Year Fixed APR
Birmingham 6.44% 5.64%
Huntsville 6.42% 5.62%
Mobile 6.47% 5.67%
Montgomery 6.45% 5.65%
Tuscaloosa 6.46% 5.66%

* APR rates shown are for borrowers with excellent credit. Click city names to view recommended lenders and ratings.

 
 
 

Compare Lenders Rated by Alabama Homeowners

 

Alabama homeowners rated their mortgage lenders on:

 
  • Ease of application
  • Rates and terms offered
  • Customer support and advice
  • Overall recommendation %
 

See the Best Mortgage Lenders in Alabama

 
 
 
 
 
 

FAQs Alabama Mortgage Rates

 

Are home purchase rates higher in Alabama than the U.S. average?

 

Alabama rates are typically slightly above the national average, though the difference is often marginal for most borrowers.

 
 

What credit score is best for buying a home in Alabama?

 

A credit score of 720 or higher typically secures the most competitive mortgage rates available in Alabama.

 
 

Is it better to choose a fixed-rate or ARM in Alabama?

 

Fixed-rate mortgages provide payment stability for long-term homeowners, while ARMs may benefit those planning to move or refinance within a few years.

 
 
 

More Alabama Home Information:

Home Purchase Calculator 

FHA Loans, FHA Rates and Veteran Rates

Fixed Rates: 30 Year, 20 Year, 15 Year, 10 Year

Variable Rates: 10 Year, 7 Year, 5 Year, 3 Year

Alabama Best Mortgage Lenders from Community Recommendations

Alabama Best Home Insurance from Community Recommendations & Insurance Costs

More Resources for Alabama Homeowners.