Disclaimer about mortgage rates in alabama : At Security America Mortgage, we don’t post interest rates on our website because they change all the time. But don’t worry; if you want a rate quote, just give us a call! We always stay competitive when it comes to rates and customer service.
Interest rates can vary depending on the type of loan, your credit profile, down payment, and debt-to-income ratio. The rates you see on this page are just what other lenders were offering when we published this content, and they’ve probably changed by now, and will keep changing. We try to update the page as much as possible to show the rates our competitors are offering, but please keep in mind that rates can differ from lender to lender.
We believe in being transparent, and we don’t want you to get confused. If you see a lower rate elsewhere, make sure you’re comparing the full picture. Sometimes a lower rate comes with extra costs like discount points or origination fees, so it’s important to consider the overall cost of the loan, that’s what makes up the APR (Annual Percentage Rate). The interest rate is just one part of the story!
Alabama’s housing market showing consistent interest from homebuyers this April 2025 housing market is seeing regular to robust interest, Illinois real estate comparatives report, driven by fairly flat mortgage rates and spurt in spring property listings. Whether you’re shopping for your first house or looking to refinance, keeping an eye on the current mortgage rate trends in Alabama can help you get the best deal and save thousands over the life of your loan.
Here is what you need to know about today’s average mortgage rates in Alabama, using data from Bankrate.com and Money.com, Yahoo Finance and the Alabama Housing Finance Authority (AHFA).
Current Mortgage Rates in Alabama
As in 2025, mortgage rates in Alabama are just below the national average giving homebuyers in the state a distinct advantage. 30-Year Fixed Mortgage
- Rate: ~6.83%
- National Average: 6.90%
(Source)
The 30-year mortgage is still the most common choice among home buyers, providing stability and predictability. Alabama’s current rate of 6.83 percent is just below the national average, making it a competitive option.
15-Year Fixed Mortgage
- Rate: ~6.00%
- National Average: 6.14%
(Source)
Ideal for home buyers and homeowners who want to pay down their mortgage faster, while saving on the interest they pay. The Alabama 15-year was 6 basis points lower than the 4.07% national average15-year rate this week making financially-prepared buyers even more enticed.
5/1 ARM (Adjustable-Rate Mortgage)
- Rate: ~7.39%
Adjustable-rate mortgages have a lower initial rate than fixed-rate mortgages, but you’ll risk that the rate will rise after the fixed period is over. Although less in favor in today’s rate environment, it may be worth considering for a homeowner who is likely to move in the short term.
Refinance Rates in Alabama
If you’re thinking about refinancing your current mortgage, one great thing to keep in mind is that Alabama refinance rates are currently a little bit higher than purchase rates, but they’re still fairly low.
- 30-Year Fixed Refinance: ~ 7.018%
- 15-Year Fixed Refinance: ~6.298%
(Source)
These are national refinance rates that are influenced by Federal Reserve policy and inflation and investor sentiment.
Special Loan Programs: Alabama Housing Finance Authority (AHFA) Special loan programs help those with special circumstances such as first-time home buyers or those with low credit to move up to home ownership or enjoy a lower interest rate.
There are also special programs including below-market mortgage rates, and even down payment assistance – available for eligible buyers through the Alabama Housing Finance Authority (AHFA).
AHFA Interest Rates for April 2025:
- FHA / VA / USDA Loans: 5.750%
- Freddie Mac Loans (1st) Conforming: 6.250%
(Source)
First-time buyers and moderate-income purchasers can benefit from these programs. AHFA also works with its approved lending partners across the State to increase the availability of affordable housing.
Alabama’s Real Estate Market Snapshot
Alabama home sales had a significant uptick this March 2025, starting off the spring buying season with a bang. The real estate market in major cities, such as Birmingham, Huntsville and Mobile, is indicative of strong work in progress, according to Yello whammer News.
This increased demand and slightly lower mortgage rates has made Alabama one of the better markets in the Southeast for buyers who find rates attractive as they hope to lock in borrowing costs before rates increase further later this year.
Advice for Alabama Homebuyers from the Experts
Here, from Alabama real estate and financial professionals, are a few tips to consider as you plan your home purchase or refinance:
Shop Around for Lenders
Even within the same city, rates can differ from lender to lender. Obtain quotes from at least three mortgage lenders to compare not only rates, but also fees and terms.
Look up State-Sponsored Programs
THE PROGRAMS: For AHFA loan information and first-time homebuyer assistance. You may also be eligible for discounts or grants to help offset the cost of buying a home.
Lock Your Rate
If you’re offered a quoted rate and are comfortable with it, think about locking it in. This can save you money if your loan servicer initially charges you a higher rate, especially given that the Federal Reserve is still watching inflation and adjusting its policies accordingly.
Understand Loan Types
Fixed-rate loans provide predictability; adjustable-rate mortgages may be better for short-term living. Align the type of mortgage you qualify for with your long-term financial goals and your timeline.
Rocket Mortgage Rates Today (April, 2025): Here’s What Alabama Borrowers Need to Know
Competitive rates for residents of Alabama:
- 30-Year Fixed: 7.125% (APR 7.449%)
- 30-Year FHA: 6.375% (APR 7.289%)
- 30-Year VA: 6.49% (APR 6.919%)
- 30-Year Jumbo Fixed: 6.375% (6.558% APR) (source)
These rates are of particular importance for military families living in Alabama.
- Redstone Arsenal in Huntsville
- Maxwell-Gunter Air Force Base in Montgomery
- Fort Novosel (formerly Fort Rucker) in Dale County
- Anniston Army Depot in Bynum
- USCG Aviation Training Center in Mobile
These bases make a substantial contribution to the Alabama economy and community. Active-duty service members or veterans may be eligible for VA loans, which come with liberal terms and no down payment. Rocket Mortgage offers a personalized experience for servicemen and women, making it easier to qualify for a home loan.
VA loan rates are typically lower than conventional mortgage rates, making them a great option for veterans, active-duty service members, and eligible spouses. VA Loans in Alabama are especially popular due to the state’s strong military presence, offering no down payment and no PMI, making homeownership more accessible for military families.
What’s next for Alabama Mortgage Rates?
Most other experts expect that rates will be bouncing around through the end of 2025, depending on economic signals like inflation, job growth and the Federal Reserve’s decisions about monetary policy, too. Rates aren’t likely to fall much, but they might level off or move up a bit.
Alabama is still one of the more affordable places to live and with today’s mortgage rates; it’s an ideal time to get a mortgage before the summer home-buying wave starts.
Final Thoughts
Today’s Mortgage Rates in Alabama No state will have a lower average interest rate than Alabama, and state-sponsored loan programs provide some extra benefits to those who can qualify. Whether you’re a first-time homebuyer, moving up or downsizing, this is an especially good time to size up, size down or roll the dice and refinance.
Keep in mind: Interest rates can fluctuate daily. Collaborate with a reputable lender or financial consultant for individual insights and the best deal you can get.