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Alabama mortgage calculator

The median home in Alabama runs about $220,000. With 20% down that's a loan near $176,000 — the calculator is pre-filled with that figure. Alabama has some of the lowest property taxes in the country, which keeps the monthly cost of owning down even as home prices have climbed. Insurance runs higher near the Gulf Coast.

$1,142.70 / month

Total interest
$235,375
Total paid
$411,375
Payoff
30.0 years
Balance over YearBalance ends near $0 at 30.$0$44k$88k$132k$176k0612182430Year

How it works

A full Alabama payment is more than principal and interest. At the state's 0.40% effective property tax rate, a $220,000 home owes about $880 a year in tax, and homeowners insurance averages roughly $2,000 a year here. Together those add about $240 to the monthly payment before any HOA dues or PMI.

Alabama's median household income is about $60,000, or $5,000 a month. Lenders generally want the full housing payment under about 28% of that — roughly $1,400 — which is why a median-priced home is comfortable in some metros and a stretch in others. Homes in Alabama sell in about 45 days on average.

Frequently asked questions

What is a typical mortgage payment in Alabama?
On the state's roughly $220,000 median home with 20% down, the loan is about $176,000. Principal and interest depend on your rate; on top of that, Alabama's 0.40% effective property tax rate and about $2,000 a year in homeowners insurance add roughly $240 per month to the payment.
How much are property taxes on a home in Alabama?
Alabama's effective property tax rate averages about 0.40% of market value — roughly $880 a year on the $220,000 median home. Your county sets the actual rate and may assess below market value.
Is homeowners insurance expensive in Alabama?
The average Alabama homeowners policy runs about $2,000 a year. Alabama has some of the lowest property taxes in the country, which keeps the monthly cost of owning down even as home prices have climbed. Insurance runs higher near the Gulf Coast.
Can I afford a home in Alabama on the median income?
Alabama's median household income is about $60,000 a year, or $5,000 a month. Lenders generally want the full housing payment under about 28% of that — roughly $1,400 — so a median-priced home is a stretch in the pricier metros.
How fast do homes sell in Alabama?
A for-sale home in Alabama spends about 45 days on the market on average, though this varies widely by metro and season.

Learn more: Understanding your mortgage payment

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