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Mortgage Calculator &
Closing Costs: Alabama

Mortgage payment estimates, closing cost breakdowns, and first-time buyer programs for Alabama homebuyers.

Median Home Price
$230K
Property Tax Rate
0.41%
Avg Closing Costs
$3K
1.4% of price
Avg Insurance
$1,950/yr
First-Time Buyer Program: Alabama Housing Finance Authority Step Up
Up to $10,000 DPA

Mortgage Calculator — Alabama

Pre-filled with Alabama medians. Adjust for your property.

$
$46,000
%
%
years
AL avg
%
$
Monthly Payment (PITI)
$1,405
Principal + Interest + Tax + Insurance + PMI
Principal & Interest
$1,163
per month
Taxes & Insurance
$242
per month
Total Interest Paid
$235K
over 30 years
Total Loan Cost
$419K
all payments
Payment Breakdown
Loan Amount$184,000
Principal & Interest$1,163
Property Taxes$79
Homeowners Insurance$163
Total Monthly PITI$1,405

Closing Costs — Alabama

Estimated closing costs based on Alabama tax rates and fees.

$
%
Alabama: Avg closing costs 1.4% of price. Transfer tax: 0%.
Estimated Closing Costs
$7,980
3.5% of purchase price
Lender Fees
$2,081
origination, underwriting
Third-Party
$2,600
appraisal, title, inspection
Government Fees
$0
transfer taxes, recording
Prepaids + Escrow
$3,299
taxes, insurance, interest
Itemized Costs
Loan Origination (0.8%)$1,656
Underwriting Fee$350
Credit Report$75
Appraisal$550
Home Inspection$450
Title Search + Insurance$1,450
Recording Fee$150
Prepaid Taxes (3 mo)$236
Prepaid Insurance (12 mo)$1,950
Prepaid Interest (15 days)$553
Escrow Reserves$561
Total Closing Costs$7,980

Buying a Home in Alabama

The median home price in Alabama is $230,000, with property taxes averaging 0.41% annually. Alabama's low property tax rate is a major advantage for buyers, keeping monthly costs well below what you'd pay in high-tax states.

Closing costs in Alabama average $3K (1.4%% of purchase price). Alabama does not charge a transfer tax, which helps keep closing costs lower. Homeowners insurance runs approximately $1,950 per year. This is within the normal range nationally.

Alabama offers the Alabama Housing Finance Authority Step Up for first-time buyers: Up to $10,000 DPA. Contact your state housing finance agency or a HUD-approved housing counselor for eligibility details and application steps.

Alabama offers strong affordability. With median prices under $250K, first-time buyers have realistic paths to homeownership, especially combined with state assistance programs.

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