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Alabama Mortgage Rates

Alabama Mortgage Rates
Betsalel Cohen
By Betsalel Cohen
2017-08-21T08:15:03

Comparing

In order to help you see how Alabama mortgage rates compare with National rates, check out the following rate table from the industry website mortgagenewsdaily.com. These rates represent national averages and are based on specific loan assumptions.

Shopping for Best Mortgage Rates in Alabama

It is important to shop around for the best terms. Make sure that you compare rates, lender fees and learn about third party fees. When comparing mortgage offers check out the term (length), interest rate (fixed vs. variable), and if applicable the cost of mortgage insurance. Get more information about mortgage rates and mortgage fees. Also, FHA loans, which always require mortgage insurance, differ from conventional loans, which require Private Mortgage Insurance (PMI) if your loan to value ratio (LTV) is over 80%. Make sure that you use all of your costs when comparing loans.

Qualifying for a Mortgage in Alabama

In order to qualify for the best mortgage rates in Alabama it is important to have an excellent credit score. Also, you want to make sure that your debt to income ratio (DTI) and your downpayment or equity position , your loan to value ratio (LTV) are sufficient to qualify. Read this Bills.com article about qualifying for a mortgage.

Mortgage Resources for Alabama

Alabama is the twenty fourth most populous US state. According to the US census, as of 2017, there is an estimated population of over 4.8 million residents, which represents 1.5% of the US population. According to Wikipedia there are a number of bank headquarters located in Alabama, including "Regions Financial Corporation, BBVA Compass, Superior Bancorp and the former Colonial Bancgroup". During the 2007 housing crisis and Great recession housing prices in Alabama were more stable than most parts of the USA.

Based on 2015 HMDA data, Alabama compared to National loan program distribution, had a lower percentage of conventional loans (60% vs 69% nationally). VA loans (14%) were higher than the national average (10%).

Here are some outside resources that can help you understand the Alabama mortgage environment:

  1. FHA loan amounts in Alabama: (note:set the table to Alabama). There are 67 counties in the state of Alabama of which none of the single family units meet the Highest loan limit, currently at $636,150. The vast majority, 94% of the counties are at the Standard loan limit, currently at $275,665. The remaining 6% are between those two limits.
  2. FHFA Conventional Loan Amounts: Check the pdf from FHFA for all states and search for Alabama and your county or check out the FHFA conforming limit map. Since the FHFA has higher base limits than the FHA, currently at $424,100, all of the counties meet this limit.
  3. Alabama Mortgage Programs: The Alabama Housing Finance Authority (AHFA) is a public corporation that aims to create housing opportunities through the affordable financing of single- and multifamily housing. They offer the Step UP loan, which includes a down payment assistance loan as a second mortgage. For those with income less than 80% of the area median income, there is the Step Up + mortgage, which also offers discounts on the mortgage insurance payments. In addition the AHFA offers a A Mortgage Credit Certificate (MCC) program. The various programs have income, credit, and property restrictions.
  4. Check out the Hud’s website for more information about homeowner programs and homeowner education programs.

Mortgage Trends and Statistics for Alabama

Mortgage rates, loan amounts, LTV, (etc) vary based on areas. The FHFA provides a useful insight into differences in conventional loans. We are providing historical data based on State based information for 2002 - 2015.

Source of Data: FHFA Historical Table - (TERMS ON CONVENTIONAL HOME MORTGAGES) Table 15 - By State and Table 12 Fixed-Rate Mortgages

Check out some differences between Alabama and the US:

  • Mortgage Rates for Conventional Loans in Alabama
  • Mortgage Fees for Conventional Loans in Alabama
  • Loan Amount for Conventional Loans in Alabama

Mortgage Rates for Conventional Loans in Alabama vs USA

Mortgage Fees for Conventional Loans Alabama vs USA

Purchase Pricer Conventional Loans in Alabama vs USA