Calculate your monthly mortgage payment in Alabama. Pre-filled with Alabama's typical home value of $241,600 (Zillow Home Value Index, August 2026) and an effective property tax rate of 0.38% (Census ACS 2024 1-year, median taxes ÷ median home value).
Est. Monthly Payment
$1,468
Principal & Interest
$1,290
Property Tax / mo
$77
Total Interest Paid
$271,046
| Home Price | $241,600 | Typical home value in Alabama — Zillow Home Value Index, August 2026 |
| Down Payment | 20% ($48,320) | Assumption — no sourced state average |
| Loan Amount | $193,280 | Home price minus down payment |
| Interest Rate | 7.03% | Freddie Mac PMMS national average, week of 2026-09-24 — not a Alabama rate |
| Loan Term | 30 years | Assumption |
| Property Tax | 0.38% / year | Alabama effective rate — Census ACS 2024 1-year, median taxes ÷ median home value |
| Home Insurance | 0.5% / year | Assumption — not a sourced premium |
Programs named for Alabama: Step Up, Mortgage Credit Certificate (MCC). This list has no recorded source or date and may be out of date — confirm current programs and eligibility with the Alabama housing finance agency before you rely on it.
Cost of living: Low (index 86.0, MERIC (C2ER index), Second Quarter 2026) · Population: 5,193,088 (Census Bureau estimate, July 1, 2025)
Alabama has a typical home value of about $241,600 (Zillow Home Value Index, August 2026), below the U.S. typical value of $368,700. With an assumed 20% down payment of $48,320, a buyer would finance $193,280 over 30 years. At the national 7.03% fixed rate, the monthly principal and interest payment comes to $1,290.
The effective property tax rate in Alabama — median real estate taxes paid divided by median home value — is 0.38% per year (Census ACS 2024 1-year, median taxes ÷ median home value), against 0.89% for the U.S. Combined with an assumed $101 a month for homeowners insurance, the estimated all-in monthly housing cost is about $1,468.
Using the 28% housing cost guideline, you would need a gross annual income of approximately $62,905 to qualify comfortably. The median household income in Alabama is $66,659 (Census ACS 2024 1-year).
