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Who has the best mortgage rates in Alabama?

A good rate for a primary, single-family home in for , and credit score is:

6.65% - 6.84%

Bar chart showing 3 data points from 6.65% to 7.21%. Use Tab to navigate between bars, and Enter to select a bar.

6.65%6.79%6.93%7.07%7.21%

TrueRatefound 50 lenders for you

Rates updated Jun 11, 2025

Insights

Negotiate everything—rates, fees, and terms are not set in stone.

Portrait of George Robinson, TrueRate Data ScientistGeorge Robinson TrueRate Data Scientist

Lenders with low rates in AL

TrueRate analyzed the rates lenders actually gave to buyers for the last three years and found only 3 lenders likely to get you a good deal.

LenderLender fees
Customer reviews
Tomo Mortgage, LLCHighly ratedHighly rated
Pentagon Federal Credit UnionAverageAverage
Bank IndependentMixed reviewsMixed reviews

Insights

Negotiate everything—rates, fees, and terms are not set in stone.

Portrait of George Robinson, TrueRate Data ScientistGeorge Robinson TrueRate Data Scientist

Lenders with average rates in AL

You deserve better than what these 47 lenders historically provide.

Don’t let lenders pull a fast one on you

Learn how really low rates often come with hidden fees. Drag the slider to see how rates and fees are connected.

6.65% - 6.84%
$00 pts

Insights

TrueRate compares lenders based on their 0 points or par rate. You should use this rate when comparing lenders.
Portrait of James McTernan, Tomo Mortgage Loan AdvisorInsights by James McTernan Tomo Mortgage Loan Advisor - NMLS #337556

TrueRate report

See how mortgage companies got home buyers to over-pay by billions.

Get the report

Methodology

We believe in transparency. Here’s how we crunched the numbers.

See our TrueRate methodology

Based on lender data from 2023 with at least 10 loans similar to yours with 0 points for a 30-year fixed mortgage.

Alabama is proving to be a hidden gem for homebuyers

If you’ve been thinking about planting your roots in a state known for its Southern charm and hospitality, now might be the perfect time to make your move.

Birmingham is at the forefront of Alabama’s housing market transformation. Once a manufacturing powerhouse, the city is experiencing a renaissance, with a flourishing arts scene, revitalized neighborhoods, and a burgeoning culinary landscape. Areas like Avondale and Highland Park offer an inviting mix of historic homes and modern amenities, with a median home price around $250,000—much lower than the national average.

Mobile, with its rich history and picturesque waterfront, is another excellent option for those looking to buy. The city has a vibrant cultural scene, with festivals and events happening year-round. The median home price in Mobile is about $190,000, making it an attractive choice for first-time buyers seeking affordability without sacrificing quality of life.

If a slower pace is more your speed, consider Huntsville, which has rapidly become one of the fastest-growing cities in the U.S. Known for its tech industry and outdoor activities, the city has a median home price of around $330,000, making it a great option for families and professionals alike.

Alabama also provides various assistance programs for first-time homebuyers, including down payment assistance and affordable loan options, making the path to homeownership more attainable.

With its blend of vibrant cities, rich history, and improving affordability, Alabama is an appealing state to consider for your next home. Whether you’re drawn to the dynamic atmosphere of Birmingham or the coastal charm of Mobile, there’s a lot to love in the Heart of Dixie!