Alabama Mortgage Calculator

Calculate your monthly mortgage payment in Alabama. Pre-filled with Alabama's average property tax rate of 0.40%. See principal, interest, PMI, property taxes, and insurance.

$70,000

Monthly Payment Breakdown

Principal & Interest
$1,770
Property Tax
$117
Homeowner's Insurance
$100
Total Monthly Payment
$1,986

Loan Summary

Home Price
$350,000
Down Payment
$70,000
Loan Amount
$280,000
Total Interest
$357,125
Total Cost(P&I + down payment)
$707,124

See how this mortgage fits your financial plan

Your estimated payment is $1,986/month. See how it fits alongside your income, savings, investments, and other expenses over time.

Try the Full Simulator

Alabama Housing Overview

Alabama has an average property tax rate of 0.40%. Alabama has a cost of living roughly 13% below the national average, with particularly affordable housing and utilities.

Property Tax: 0.40%Low standard deduction ($2,500 single)Does not tax Social SecurityLocal taxes may apply in some cities

Buying a Home in Alabama

If you're considering buying a home in Alabama, understanding the local housing market and costs is essential. Property taxes, insurance rates, and home prices vary significantly by area within the state. This calculator pre-fills Alabama's average property tax rate of 0.40% to give you a more accurate estimate.

Alabama Property Taxes

Alabama has an average effective property tax rate of 0.40%. Property taxes are a significant component of your monthly housing cost — on a $350,000 home, a 0.40% rate means approximately $1400 per year, or $117 per month in property taxes alone.

Cost of Living in Alabama

Alabama has a cost of living roughly 13% below the national average, with particularly affordable housing and utilities. When evaluating whether to buy a home in Alabama, consider how your mortgage payment plus other housing costs fit within the recommended 28% of gross income guideline.

Financial Tips for Alabama Homebuyers

  • Alabama has one of the lowest costs of living in the US — stretch your paycheck further
  • Property taxes in Alabama are among the lowest nationally, reducing housing costs
  • Alabama does not tax Social Security benefits
  • Consider maximizing 401(k) contributions since Alabama taxes retirement income

Key Alabama Features

  • Low standard deduction ($2,500 single)
  • Does not tax Social Security
  • Local taxes may apply in some cities

See How Your Alabama Mortgage Fits Your Financial Plan

This calculator shows your Alabama mortgage payment. Trajectoryy's full simulator shows how that payment fits alongside your income, taxes, savings, investments, and more.

Start Simulating for Free

Compare Alabama Mortgage Costs with Other States

Tennessee0.66% property taxGeorgia0.92% property taxMississippi0.65% property taxCalifornia0.71% property taxNew York1.46% property taxTexas1.80% property tax

Frequently Asked Questions

What is the average property tax rate in Alabama?
The average effective property tax rate in Alabama is approximately 0.40%. This rate is applied to the assessed value of your property, which may differ from the market value depending on Alabama's assessment practices. Property tax rates can also vary significantly by county and municipality within the state.
How much does a typical mortgage payment cost in Alabama?
Your mortgage payment in Alabama depends on the home price, your down payment, interest rate, and loan term. With Alabama's average property tax rate of 0.40%, property taxes add a meaningful amount to your monthly payment. Use the calculator above with your specific numbers to get an accurate estimate.
Is Alabama an affordable state to buy a home?
Alabama has a cost of living roughly 13% below the national average, with particularly affordable housing and utilities. When evaluating affordability in Alabama, consider not just the home price but also property taxes (0.40% average), homeowner's insurance costs, and any HOA fees common in your area.
How do Alabama property taxes compare to other states?
Alabama's average property tax rate of 0.40% can be compared against the national average of roughly 1.1%. States like New Jersey (2.23%) and Illinois (1.97%) have among the highest rates, while Hawaii (0.28%) and Alabama (0.40%) have among the lowest.
What first-time homebuyer programs are available in Alabama?
Most states, including Alabama, offer first-time homebuyer programs through their state housing finance agency. These typically include down payment assistance, below-market interest rates, and closing cost grants. Check with Alabama's housing authority and the FHA, VA, and USDA loan programs for additional options.

Related Calculators

Housing

Rent vs. Buy Calculator

Monthly Rent$1,800
Home Price$350,000
Monthly Own$2,228
Equity (5yr)+$47,200
Breakeven4.2 years
5yr WinnerBuy
sample data — click to try your numbers
Savings

Savings & Investment Growth Calculator

Starting$10,000
Monthly+$500
Return8%/yr
Contributions$190,000
Earnings$555,620
Final Balance$745,620
sample data — click to try your numbers
Debt

Debt Payoff Calculator

Total Debt$18,500
Extra Payment$200/mo
StrategyAvalanche
Interest Saved$3,847
Debt-Free34 months
vs. Minimum22mo faster
sample data — click to try your numbers