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Mortgage Calculator /With Taxes and PMI /Alabama

Alabama Mortgage Calculator

Set to Alabama’s own property tax rate of 0.38% and its median home price, so the payment below reflects what owning here actually costs — not a national average.

$
% ($46,600)
years
%
$/year
$/year
$/month
%
$/month
Amortization schedule
$1,330
Monthly payment
$1,188
Principal & interest
$74
Taxes
$68
Insurance
$0
HOA fees

Loan balance over time

Balance Principal paid $186,400 Interest paid $241,280
20262056
Total of 360 payments$478,710
Principal$186,400
Interest$241,280
Taxes$26,550
Insurance$24,480
HOA fees$0
P&I 89.3% Taxes 5.5% Insurance 5.1%
15- vs 30-year term at 6.58%
15-year
$1,632/mo P&I
$107,352 total interest
30-year · current
$1,188/mo P&I
$241,280 total interest
The 15-year term saves $133,928 in interest. Which term is right for you?

What these numbers come from

Median home value
$233,300
Median tax bill
$890
Effective tax rate
0.38%
Rank of 51
50th highest

Alabama taxes property at about 0.38% of value against 0.89% nationally. On a $233,000 home that is $99 a month less than the same house would cost in taxes at the national rate. Rates are set by counties, cities and school districts, so your own bill will differ from the state median — put your actual figure in the property tax field and the payment updates.

Tax and home value figures: U.S. Census Bureau, American Community Survey 2024 1-year estimates. Insurance is estimated at 0.35% of home value per year — there is no comparable public per-state dataset, so treat it as a placeholder and replace it with your own quote. The interest rate is the national Freddie Mac 30-year average of 6.58%; this site does not publish state-level rate quotes.

Monthly cost across Alabama home prices

20% down, 30-year fixed at 6.58%, with Alabama property tax of 0.38% and estimated insurance.

Home price Loan P&I Tax/mo Full payment
$140,000 $112,000 $714 $44 $799
$187,000 $149,600 $953 $59 $1,067
$233,000 median $186,400 $1,188 $74 $1,330
$292,000 $233,600 $1,489 $92 $1,666
$350,000 $280,000 $1,785 $111 $1,997

The gap between the P&I column and the last one is what a mortgage quote leaves out. In Alabama taxes alone add $74 a month on a median-priced home.

Amortization schedule

Date Principal Interest Tax, Ins. & HOA Balance
Aug $166 $1,022 $142 $186,234
Sep $167 $1,021 $142 $186,067
Oct $168 $1,020 $142 $185,900
Nov $169 $1,019 $142 $185,731
Dec $170 $1,018 $142 $185,561
2026 $839 $5,101 $709 $185,561
Jan $171 $1,017 $142 $185,391
Feb $171 $1,017 $142 $185,219
Mar $172 $1,016 $142 $185,047
Apr $173 $1,015 $142 $184,874
May $174 $1,014 $142 $184,699
Jun $175 $1,013 $142 $184,524

Refinancing in Alabama

The arithmetic is the same everywhere: refinancing pays off when the monthly saving clears the closing costs before you sell or refinance again. What differs by state is the cost of getting there — recording fees, transfer and mortgage taxes, and whether an existing tax assessment survives the new loan.

Work the break-even with the refinance calculator, or check this week’s national average rates.

Alabama home loans in detail

Alabama Mortgage Overview

Known as the 'Yellowhammer State,' Alabama is the 30th largest state in the country. The median home value in Alabama is around $300,000, making it a great state for first-time homebuyers.

The Alabama Housing Finance Authority has offered first-time homebuyer programs since the 1980s and has helped almost 75,000 families stop renting and become homeowners. It's a great place to set up roots for families of all sizes.

Homebuyers in Alabama have many mortgage options including:

Alabama FHA loans

If you have less-than-perfect credit or had recent negative credit events, an Alabama FHA loan is a great solution. With a credit score of just 580 and a down payment of 3.5 percent, you can secure FHA financing, and buy your first (or subsequent) Alabama home. FHA loans have flexible guidelines, and even borrowers with a credit score as low as 500 may qualify with a 10 percent down payment.

Alabama VA loans

If you served (or currently serve) in the military, the Alabama VA loan provides 100 percent financing and flexible underwriting guidelines. Lenders allow credit scores as low as 620 and debt-to-income ratios close to 50 percent for veterans who served our country.

Alabama USDA loans

If you are a low to moderate-income family and this is your first home or you haven't owned a home in 3 years, the USDA loan may be a good option. You don't need a down payment and only need a 640 credit score. Its flexible guidelines and low costs make it great for first-time homebuyers.

Alabama conventional loans

If you have great credit (660+) and low debt-to-income ratios (less than 36 percent), the conventional loan is a great option. You only pay mortgage insurance until you owe less than 80 percent of the home's value and can secure some of the lowest interest rates.

First-Time Homebuyer Programs in

Alabama

Step-Up Program

Buyers with household income below $130,600 are eligible for the FHA Step Up program and borrowers who make the lesser of 80 percent or less of the Area Median Income or $130,600 are eligible for the Conventional Step Up program.

The Step-Up Program provides 3 percent or 3.5 percent down payment assistance, as long as you have a 640+ credit score and 45 percent or lower debt-to-income ratio. You must complete a homebuyer education course and go through an approved lender.

Affordable Income Subsidy Grant

The Affordable Income Subsidy Grant is in addition to the Step-Up Down Payment Program and helps cover the closing costs. Borrowers must not make more than 80 percent of the area's median income. Borrowers may get up to 1 percent of the loan amount for closing costs. The amount you receive depends on your income level. Borrowers must meet the same qualifying requirements as the Step-Up program to qualify.

Alabama mortgage FAQ

How much is property tax on a home in Alabama?
Alabama homeowners pay an effective property tax rate of about 0.38 percent of home value — the 50th highest of the 50 states and DC. On the state's median home value of $233,300 that works out to roughly $885 a year, or $74 a month added to the mortgage payment. The figures come from the Census Bureau's American Community Survey 2024 1-year estimates; your own bill depends on the county and city rates where the home sits.
What is the monthly payment on a median-priced Alabama home?
At $233,000 with 20 percent down and the current 6.58 percent national 30-year fixed average, principal and interest come to about $1,188 a month. Adding Alabama property tax of roughly $74 a month and an estimated $68 of homeowner insurance brings the full payment to around $1,330.
What mortgage options are available in Alabama?
Alabama homebuyers can choose conventional loans for borrowers with 660 or higher credit and debt-to-income ratios under 36 percent, FHA loans with a 580 credit score and 3.5 percent down, VA loans offering 100 percent financing for military members with scores as low as 620, and USDA loans with no down payment and a 640 credit score for low to moderate-income families.
Which first-time homebuyer programs does Alabama offer?
The Alabama Housing Finance Authority runs the Step-Up Program, which provides 3 to 3.5 percent down payment assistance for buyers with a 640 or higher credit score and a debt-to-income ratio of 45 percent or less. The Affordable Income Subsidy Grant adds up to 1 percent of the loan amount toward closing costs for borrowers earning 80 percent or less of the area median income.
What credit score do you need to buy a home in Alabama?
It depends on the loan. Alabama FHA loans accept a 580 credit score with 3.5 percent down, or as low as 500 with 10 percent down. VA loans allow scores from 620, USDA loans require 640, and conventional loans generally want 660 or better. The Step-Up assistance program also requires at least a 640 score.

Property tax in every state

Effective rate on owner-occupied value, highest bills first in each column.