Alabama Mortgage Rates
Check current mortgage interest rates for Alabama.
Current Alabama Mortgage Rates
Updated Feb 3, 2012
from the LendingTree Network
30 Year Fixed Rate
3.50%
3.62%
15 Year Fixed Rate
2.75%
2.97%
5/1 Adjustable Rate
2.25%
3.12%
3/1 Adjustable Rate
2.49%
3.31%
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Alabama Mortgage Rates and FHA Loans
FHA loans are government-insured loans that help Americans on a budget become homeowners. Alabama mortgage rates backed by an FHA loan are considerably low when compared to traditional mortgage interest rates in Alabama. FHA loans in Alabama can also help homeowners secure a down payment that is an extremely low percentage of the purchase price.
Some other advantages to this type of mortgage include the following:
• Assistance is given to homeowners who are behind on their mortgage payments.
• Buyers are able to obtain a new FHA insured loan after only 2 years from the discharge of a bankruptcy and only 3 years of a previous foreclosure.
• FHA loans are assumable.
• The down payment money can come from a family member, employer, or charitable organization as a gift.
Because FHA insures the mortgage, most lenders offer loan terms that are easier to qualify. Additionally, compared with average AL mortgage rates, FHA loans tend to offer better interest rates.
There are, however, certain limitations of the FHA program. For example, there is a cap on the amount of money that can be financed with an FHA loan in Alabama, depending on the county in which you reside. In addition, FHA loans require an up-front mortgage insurance premium (UFMIP), which is a small percentage of the total amount being mortgaged.
VA Loans in Alabama
Alabama has a great military history, and continues to be home to many members of the U.S. Armed Forces. The Department of Veterans Affairs offers VA loans to U.S. veterans and military personnel in active duty stationed at Maxwell-Gunter, Anniston, Fort Rucker and Redstone. While mortgage rates on VA Loans are usually similar to current Alabama mortgage rates, this type of loan does have its advantages.
Some of the main benefits of a VA loan are the following:
• The Department of Veterans Affairs guarantees the home loan for you.
• The U.S. Government restricts the amount of closing costs.
• Zero down payment is available in some cases.
Before deciding if a VA loan is best for you, you should be aware that there is a one-time funding fee for which all borrowers are responsible. This fee can be combined with the entire mortgaged amount, but when subjected to current AL mortgage rates that apply to the total principal, this may end up costing the buyer more money in the end.
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