Best mortgage rates in Alabama

@emilie.windler  As of July 2024, mortgage rates in Alabama are competitive, though they vary depending on the type of loan and lender. Here are some of the best available rates:

30-Year Fixed-Rate Mortgage:

• Average rate around 6.50% to 7.52%​ (LendingTree)​​ (Total Mortgage)​.

15-Year Fixed-Rate Mortgage:

• Average rate around 5.94% to 6.99%​ (LendingTree)​​ (Total Mortgage)​.

FHA Loans:

• These loans often offer lower rates and require a down payment of just 3.5%. They are beneficial for buyers with lower credit scores (as low as 580)​ (LendingTree)​​ (Total Mortgage)​.

VA Loans:

• Typically offer competitive rates with no down payment required for eligible veterans and active-duty service members​ (LendingTree)​​ (Total Mortgage)​.

USDA Loans:

• Designed for rural property buyers, these loans offer zero down payment and favorable rates for those who meet the eligibility criteria​ (Total Mortgage)​.

In addition to standard mortgage options, Alabama also provides several homebuyer assistance programs:

• AHFA Step Up Program: Offers down payment assistance and affordable rates for eligible buyers. This program is available to both first-time and repeat buyers, provided they meet income, credit score, and debt-to-income ratio requirements​ (Total Mortgage)​.
• Affordable Income Subsidy Grant: Provides assistance with closing costs for eligible buyers with incomes below 80% of the Area Median Income​ (Total Mortgage)​.
• Mortgage Credit Certificate (MCC): Offers a tax credit of up to $2,000 annually for first-time homebuyers​ (Total Mortgage)​.

For the most accurate and personalized rates, it’s best to consult directly with lenders and compare offers from multiple sources, including online tools from sites like LendingTree and Total Mortgage​ (LendingTree)​​ (Total Mortgage)​.