Alabama Mortgage Calculator (2026)

Rates as of Oct 22 2026 · county tax data: ACS 2020–2024, released 2026-01-29

Statewide avg. effective tax rate
0.38%
Median home value
$240,000
Home insurance (est.)
$2,800/yr

Estimated PITI at the Alabama median home price of $240,000, 20% down, 30-year fixed at 7.32%: $1,670/mo. The tax line uses Jefferson County (Birmingham)'s effective rate of 0.59% and insurance of $2,800/yr — the calculator's default county. Buyer's transfer tax: no state transfer tax.

Payment calculator

Loan type
$
%
$48,000 cash
%
30-yr fixed base 7.32% · credit adj +0.00% → 7.32% · PMMS Oct 22 2026
Loan term
Credit score
sets local tax & insurance
Picking a county updates the local property tax rate and insurance estimate — your home price stays as entered.
Advanced — HOA & extra payments
$
$
Estimated monthly payment
$1,670.24/mo
$1,670/mo
Principal & interest$1,318.91
Property tax$118.00
Home insurance$233.33
Covers principal & interest, property tax, insurance and mortgage insurance (when it applies). HOA counts only if entered above — left blank it is $0.
Loan amount$192,000
Down payment$48,000
LTV80%
Total interest$282,806
Payoff date…
Cash to close (estimate)
Down payment$48,000
Closing costs (2%–5%)$4,800 – $12,000
Est. cash needed$52,800 – $60,000
Transfer tax: No state transfer tax
The 2%–5% covers lender & title fees only. Transfer tax is not part of the cash total — it is listed separately, and some cities levy their own on top.
Using Jefferson County (Birmingham) effective rate 0.59% · insurance $2,800/yr
Amortization
Year 12
Principal paid
$33,915
Interest paid
$156,007
Still owed
$158,085
$300k$225k$150k$75k$0
08152330

All three lines are running totals since the loan started — not a breakdown of the monthly payment.

What local costs matter in Alabama?

Among the lowest effective property tax rates in the U.S. (~0.37%)
No state-level real estate transfer tax — lower closing costs
Extra property tax exemptions available for homeowners 65+
Retirement income is exempt from state income tax
All 67 Alabama counties — property tax rates
CountyEffective tax rateProperty tax /moInsurance (est.)
Jefferson County (Birmingham)0.59%$$118$2,800/yr
Mobile County0.47%$$94$3,000/yr
Madison County (Huntsville)0.4%$$80$2,500/yr
Tuscaloosa County0.32%$$64$2,600/yr
Baldwin County0.3%$$60$3,200/yr
Autauga County0.3%$$60$2,800/yr
Barbour County0.41%$$82$2,800/yr
Bibb County0.2%$$40$2,800/yr
Blount County0.3%$$60$2,800/yr
Bullock County0.41%$$82$2,800/yr
Butler County0.36%$$72$2,800/yr
Calhoun County0.42%$$84$2,800/yr
Show all 67 counties
CountyEffective tax rateProperty tax /moInsurance (est.)
Chambers County0.39%$$78$2,800/yr
Cherokee County0.38%$$76$2,800/yr
Chilton County0.33%$$66$2,800/yr
Choctaw County0.17%$$34$2,800/yr
Clarke County0.33%$$66$2,800/yr
Clay County0.21%$$42$2,800/yr
Cleburne County0.29%$$58$2,800/yr
Coffee County0.36%$$72$2,800/yr
Colbert County0.4%$$80$2,800/yr
Conecuh County0.31%$$62$2,800/yr
Coosa County0.27%$$54$2,800/yr
Covington County0.26%$$52$2,800/yr
Crenshaw County0.32%$$64$2,800/yr
Cullman County0.26%$$52$2,800/yr
Dale County0.32%$$64$2,800/yr
Dallas County0.41%$$82$2,800/yr
DeKalb County0.32%$$64$2,800/yr
Elmore County0.27%$$54$2,800/yr
Escambia County0.39%$$78$2,800/yr
Etowah County0.39%$$78$2,800/yr
Fayette County0.28%$$56$2,800/yr
Franklin County0.32%$$64$2,800/yr
Geneva County0.34%$$68$2,800/yr
Greene County0.55%$$110$2,800/yr
Hale County0.32%$$64$2,800/yr
Henry County0.34%$$68$2,800/yr
Houston County0.31%$$62$2,800/yr
Jackson County0.3%$$60$2,800/yr
Lamar County0.24%$$48$2,800/yr
Lauderdale County0.38%$$76$2,800/yr
Lawrence County0.29%$$58$2,800/yr
Lee County0.48%$$96$2,800/yr
Limestone County0.32%$$64$2,800/yr
Lowndes County0.39%$$78$2,800/yr
Macon County0.5%$$100$2,800/yr
Marengo County0.38%$$76$2,800/yr
Marion County0.28%$$56$2,800/yr
Marshall County0.36%$$72$2,800/yr
Monroe County0.32%$$64$2,800/yr
Montgomery County0.41%$$82$2,800/yr
Morgan County0.34%$$68$2,800/yr
Perry County0.33%$$66$2,800/yr
Pickens County0.29%$$58$2,800/yr
Pike County0.27%$$54$2,800/yr
Randolph County0.25%$$50$2,800/yr
Russell County0.38%$$76$2,800/yr
Shelby County0.44%$$88$2,800/yr
St. Clair County0.32%$$64$2,800/yr
Sumter County0.43%$$86$2,800/yr
Talladega County0.36%$$72$2,800/yr
Tallapoosa County0.3%$$60$2,800/yr
Walker County0.26%$$52$2,800/yr
Washington County0.23%$$46$2,800/yr
Wilcox County0.32%$$64$2,800/yr
Winston County0.32%$$64$2,800/yr
Alabama state average0.38%$$76$2,800/yr
Monthly tax is estimated on a $240,000 home — the price in the calculator above. Effective rates — U.S. Census Bureau, ACS 2024 (5-yr).

† Rates marked with ≥ are conservative estimates. ACS suppresses median tax values above $10,001 for privacy, which makes the calculated rate a lower bound — the true rate is higher in Manhattan, parts of Long Island, northern New Jersey and other high-cost areas.

How Alabama compares

Alabama's statewide average effective rate is 0.38% — the 50th highest of the 51 covered here (the 50 states and DC), against a median of 0.8%. On the $240,000 home the calculator starts with, that is about $76 a month in property tax before any other cost. Property taxes by state ranks all 51 with median bills attached.

A state average hides the part that changes the bill. The county rows above run from 0.17% in Choctaw County to 0.59% in Jefferson County (Birmingham) — roughly $84 a month apart on the same $240,000 home. That is why the county picker moves the payment more than the state picker does.

Insurance is the other line that follows the address: this page prices $2,800 a year as a state-level estimate, and home insurance by state covers how premiums are set and where they run highest. Below 20% down, PMI adds a third variable until the balance is back to 80% of the value.

The states nearest Alabama in the ranking are Nevada (0.47%) and Hawaii (0.27%).

Alabama mortgage FAQ

How much down payment do I need to buy a house in Alabama?

Conventional loans start at 3% down, but anything under 20% requires PMI until you reach 20% equity — PMI auto-cancels at 78% of the original home value under the Homeowners Protection Act. FHA loans start at 3.5% down, and VA / USDA loans offer 0% down for eligible borrowers. Those are the national minimums: a lender can set a higher floor for this state or for a given loan size.

Why do property taxes vary so much within Alabama?

Property taxes are layered by county, city and school district, so the effective rate differs block by block. The Alabama state average is about 0.38%, but counties in our table above range widely — always confirm the exact bill with the local County Assessor.

When does PMI go away?

Under the Homeowners Protection Act (1998) you can request PMI removal at 80% LTV, and lenders must automatically cancel it when the balance reaches 78% of the original home value. This calculator estimates that month for you and shows the lower payment after PMI drops.

Does this calculator include home insurance for Alabama?

Yes. The calculator pre-fills a typical Alabama premium of about $2,800 per year and updates it when you switch counties. Gulf Coast hurricane wind is the big one — Mobile/Baldwin county homes often need a separate windstorm policy — while inland claims lean on severe thunderstorms and hail. Get real quotes before budgeting.

More free mortgage tools

affordability calculator — how much house can I afford →refinance calculator — break-even & savings →closing cost calculator — cash to close by state →
Sources

Freddie MacU.S. Census BureauFannie MaeU.S. Department of Housing and Urban Development (HUD)U.S. Department of Veterans AffairsPrivate mortgage insurersNAICState statutes and departments of revenue

Results are estimates for planning only and are not a loan approval. Property tax rates and insurance premiums vary by county, ZIP code, home age and coverage — confirm with the local County Assessor and insurer quotes. Rate default: Freddie Mac PMMS 30-yr fixed (7.32%, Oct 22 2026); the 20-yr default is an estimate derived from the PMMS 30-yr/15-yr spread (PMMS has no 20-yr series). Conventional credit pricing adds Fannie Mae loan-level price adjustments (effective 2026-10-01) on top of that base, anchored at the 740–759 tier, and PMI comes off a credit × LTV rate card — both are central estimates, not quotes. Loan minimums shown here are the national programs' floor; a lender may set a higher down payment, rate or fee for this state or this loan.