Alabama Mortgage Rates (2026)

Current average mortgage rates, median home prices, and top lenders in Alabama. Rates apply to primary residence purchases with good credit (740+).

30yr Fixed

7.05%

Avg APR

15yr Fixed

6.45%

Avg APR

Median Price

$215,000

Median home

Monthly P&I

$1,147

30yr at 80% LTV

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Top Mortgage Lenders in Alabama

1

Rocket Mortgage

Online convenience

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30yr Fixed

7%

15yr Fixed

6.4%

Min Down

3%

2

Chase

Existing customers

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30yr Fixed

6.9%

15yr Fixed

6.3%

Min Down

3%

3

Wells Fargo

Branch access

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30yr Fixed

7.1%

15yr Fixed

6.5%

Min Down

3%

4

Bank of America

Preferred Rewards

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30yr Fixed

7%

15yr Fixed

6.4%

Min Down

3%

5

loanDepot

Low down payment

Get Rate

30yr Fixed

6.9%

15yr Fixed

6.3%

Min Down

3%

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First-Time Buyer Programs in Alabama

  • AHFA Step Up Program
  • AHFA Mortgage Credit Certificate

Mortgage Requirements in Alabama

  • Minimum 620 credit score for conventional loans
  • DTI ratio typically under 45%
  • 3–20% down payment depending on loan type
  • Private mortgage insurance (PMI) required if down < 20%

Alabama Housing Market Facts

Alabama has one of the lowest median home prices in the Southeast.
Property taxes average 0.41% — among the lowest nationally.
AHFA offers down payment assistance up to $10,000.

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