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.
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 - 850 | 690 - 719 | 620 - 689 | ||
| Nationally | 6.61% | 6.66% | 6.71% | |
| Alabama | 6.70% | 6.75% | 6.80% | |
| Credit Unions | 6.30% | 6.35% | 6.50% | 9.2/10 |
| Online lenders | 6.40% | 6.45% | 6.60% | 8.4/10 |
| Banks | 6.70% | 6.75% | 6.80% | 7.7/10 |
| 30 year fixed | 6.70% | 6.75% | 6.80% | |
| 30 year fixed FHA | 6.59% | 6.64% | 6.69% | |
| 30 year fixed VA | 6.39% | 6.44% | 6.49% | |
| 30 year fixed Jumbo | 6.81% | 7.05% | 7.24% | |
| 20 year fixed | 6.33% | 6.38% | 6.43% | |
| 15 year fixed | 6.06% | 6.11% | 6.16% | |
| 10 year fixed | 5.42% | 5.47% | 5.52% | |
| 3 year ARM | 4.27% | 4.32% | 4.37% | |
| 5 year ARM | 7.00% | 7.05% | 7.10% | |
| 7 year ARM | 6.44% | 6.49% | 6.54% | |
| 10 year ARM | 6.68% | 6.73% | 6.78% | |
| Satisfaction | 8.5/10 | 8.2/10 | 7.7/10 |
Source: MFP’s Community Home Purchase Rates Survey from the last 30 days.
How Alabama Compares to National Averages
- Alabama mortgage rates (6.70% for best credit scores) are slightly above national averages (national average: 6.61%).
- Credit unions are more competitive: In Alabama, credit unions offer 6.30%, banks 6.70%, online lenders 6.40%.
Mortgage Options in Alabama
- 30 year fixed: 6.70% - most popular long-term option for predictable payments
- 20 year fixed: 6.33% - balance between payment size and interest savings
- 15 year fixed: 6.06% - lower total interest cost for borrowers building equity faster
- 10 year fixed: 5.42% - shortest fixed-term option with competitive rates
- 10 year variable: 4.27% - Offers a longer initial period with a variable rate...
- 7 year variable: 7.00% - A mid-term variable option...
- 5 year variable: 6.44% - Shorter-term variable mortgage...
- 3 year variable: 6.68% - 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.
Alabama Best Mortgage Lenders
See which Alabama lenders are most recommended for a home mortgage by community members surveys accross the State and in its main metro areas.
Hunstville, Birmingham, Montgomery, Mobile, Tuscaloosa, Hoover, Auburn, Dothan, Madison, Decatur, Florence, Prattville, Online lenders.
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 Info for Alabama Home Buyers:
Mortgage Rates & Tools
Home Purchase Calculator: Estimate your monthly payment.
Home Affordability Calculator: See what price range fits your budget.
FHA Mortgage Rates: Current rates for FHA buyers.
30 Year Fixed Home Mortgage: Today’s rate for the most common term.
15 Year Fixed Home Mortgage: Today’s rate for faster payoff.
Loan Programs & Assistance
FHA Loans: How FHA mortgages work and who qualifies.
Down Payment Assistance: Programs that help cover your down payment.
Lenders & Homeowner Resources
Best Mortgage Lenders in Alabama: Community rated lenders by city.
Alabama Home Insurance Cost: Average premiums and top rated local insurers.
Homeowner Resources & Grants: Grants and assistance programs nationwide.