Alabama Mortgage Calculator 2025
Calculate your monthly mortgage payment with Alabama-specific rates, taxes, and insurance
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Mortgage Calculator
Understanding Your Mortgage
Principal vs Interest
In the early years of your mortgage, most of your monthly payment goes toward interest. As you pay down your loan, more goes toward principal.
Extra Payments
Making even small additional payments can significantly reduce your loan term and save thousands in interest over the life of your loan.
Amortization
An amortization schedule shows how your loan balance decreases over time as you make payments, eventually reaching zero at the end of your loan term.
📊 Alabama Housing Market Overview 2025
Market Statistics
- Median Home Price:$215,000
- Average Mortgage Rate:6.12%
- Property Tax Rate:0.41%
- Avg. Home Insurance:$2100/year
- Market Trend:+6.8% year-over-year
Popular Cities
- 📍Birmingham
- 📍Montgomery
- 📍Mobile
- 📍Huntsville
- 📍Tuscaloosa
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💰 Alabama First-Time Home Buyer Programs
Alabama Housing Finance Authority Step Up
Down payment assistance for first-time and repeat buyers
$7,500
$100,000
AHFA Mortgage Credit Certificate
Federal tax credit reducing your annual tax liability
20% of mortgage interest
$95,000
❓ Frequently Asked Questions
What is the average mortgage rate in Alabama?
The average mortgage rate in Alabama is currently 6.12% for a 30-year fixed-rate mortgage. Rates vary based on your credit score, down payment amount, and the lender you choose.
What is the median home price in Alabama?
The median home price in Alabama is $215,000. The market has experienced +6.8% year-over-year growth.
What is the property tax rate in Alabama?
The average property tax rate in Alabama is 0.41% of the home's assessed value. On a median-priced home, this equals approximately $881 per year.
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