The average mortgage rate in Alabama is currently 7.06% for the 30-year fixed loan term.
Here are the interest rates offered to Alabama residents looking to buy or refinance a home as of 03/07/2023:
- 30-year fixed purchase: 7.06%
- 30-year fixed refi: 6.58%
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The average fixed rate on a 30-year mortgage declined for the third consecutive week, retreating below 7% for the first time since February. Mortgage rates are highly volatile ahead of the busy spring homebuying season.
Mortgage interest rates are twice as high as they were at the beginning of 2022, which continues to have a tangible effect on mortgage affordability and consumer housing sentiment. Mortgage rates are still widely expected to fall through 2023 but have stayed stubbornly high in the first quarter of the year. Here are the current mortgage rates, without discount points unless otherwise noted, as of March 30:
- 30-year fixed: 6.92% (down from 7% a week ago).
- 20-year fixed: 6.71% (down from 6.78% a week ago).
- 15-year fixed: 6.12% (down from 6.2% a week ago).
- 10-year fixed: 6.29% (up from 6.25% a week ago).
- 5/1 ARM: 5.66% (down from 5.71% a week ago).
- 7/1 ARM: 5.77% (down from 5.86% a week ago).
- 10/1 ARM: 6.11% (down from 6.14% a week ago).
- 30-year jumbo loans: 6.99% (down from 7.06% a week ago).
- 30-year FHA loans: 5.84% with 0.06 point (down from 6% a week ago).
- VA purchase loans: 6.02% with 0.05 point (down from 6.21% a week ago).
Alabama Housing Finance Authority has three homebuyer assistance programs Alabama homebuyers can use to help purchase a home. They include down payment assistance loans, closing cost grants and federal income tax credits.
- Available to: Eligible Alabama homebuyers using HFA Advantage conventional, Federal Housing Administration or Veterans Affairs loans.
- Income limits: Vary by loan type and potentially by county (see income limits).
- First-time homebuyers only? No.
- Benefits: Up to 4% down payment assistance ($10,000 maximum) in the form of a second mortgage with a 10-year term.
- Available to: Eligible Alabama homebuyers using HFA Advantage conventional loans.
- Income limits: Vary by county (see income limits).
- First-time homebuyers only? No.
- Benefits: A grant of up to 1% to help with closing costs.
- Available to: Eligible Alabama homebuyers using conventional fixed-rate, FHA, VA, Rural Development and privately insured mortgages.
- Income limits: Vary by area (see income limits).
- First-time homebuyers only? No.
- Benefits: A federal income tax credit that varies from 20% to 50% of the annual interest paid based on the loan amount.
U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.
To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. For mortgage lenders, we take into account each company’s customer service ratings, interest rates, loan product availability, minimum down payment, minimum FICO score and online features.
The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.
To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.
To recap, here are the picks:
