Alabama · AL

Alabama Mortgage Calculator

Pre-filled for Alabama: median home price $230,000, average property tax rate 0.41%. Adjust any slider to make it yours.

Alabama housing at a glance

Median home price: $230,000
Effective property tax rate: 0.41% / yr
Annual property tax (median home): $943
Est. monthly tax escrow: $79
State income tax: Yes

Sources: regional housing data 2025 (median price), state assessor averages 2024–2025 (tax rate).

Buying a home in Alabama

The median home price in Alabama is around $230,000 and the effective property tax rate averages 0.41%of assessed value per year. Most lenders look for a debt-to-income (DTI) ratio under 43%, meaning your total monthly debt payments (including this mortgage) shouldn't exceed 43% of your gross income.

A 20% down payment on the median home in Alabama is $46,000. Putting down at least 20% eliminates private mortgage insurance (PMI), which typically adds 0.3–1.5% of the loan amount per year to your monthly payment.

Foreclosure & legal context

Foreclosure type: Non-judicial (trustee sale)
Security instrument: Mortgage
Deficiency liability: Recourse

Alabama mortgage FAQ

What is the monthly mortgage payment for a median-priced home in Alabama?: At the current 30-year fixed rate of ~6.81%, a $230,000 home in Alabama with 20% down ($46,000) carries a principal-and-interest payment of ~$1,201/mo. Add property tax (~$79/mo at 0.41%) and homeowners insurance and your total is roughly $1,279/mo. Use the calculator above to adjust for your exact down payment and rate.
What is the property tax rate in Alabama?: The effective statewide property tax rate in Alabama averages 0.41% of assessed value per year. On a $230,000 home, that works out to roughly $943 per year ($79/mo). Individual county rates vary.
Does Alabama have a state income tax?: Yes, Alabama has a state income tax. This affects your net take-home pay and therefore your effective purchasing power — use our salary calculator to estimate what's left after tax.
What type of foreclosure does Alabama use?: Alabama uses non-judicial (trustee sale) foreclosure, which typically moves faster than court-supervised processes.

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