Alabama Mortgage Rates
The state of Alabama boasts a homeownership rate of 69.7% as of 2016. That’s roughly 1,268,138 owner-occupied housing units per the Census Bureau. Buying your home or even refinancing in Montgomery, Mobile or anywhere in Alabama means looking at mortgage rates.
Mortgage rates in Alabama move up or down on a daily basis. They are a product of numerous factors that can influence the rate you’ll be getting on your mortgage. Never forget to shop and compare rates at mortgagesum.com to land the best mortgage deal possible.
Let’s help you find a lender. Click here.What Moves Your Mortgage Rates?
For example, your credit score plays a major role in your mortgage rate. The best mortgage rates and terms are usually given to borrowers with the best credit scores. But it’s never a bad idea to try your luck among mortgage lenders and see what they can give you.
Your loan type and loan term also matter. We are talking about fixed-rate mortgages with their 15-, 20- and 30-year variants; and adjustable-rate mortgages with a fixed-rate period of 5 years and adjust each year (5/1 ARM), every three years (5/3 ARM) or every five years (5/5 ARM).
There are also government loans insured by the FHA, VA and USDA; agency loans backed by Fannie Mae and Freddie Mac; conventional loans; refinance loans; and jumbo loans for those exceeding the conforming loan limits.
Shorter-term loans tend to have lower rates and lower interest costs compared with longer-term loans. But if seen on a monthly basis, longer-term loans cost less because of their lower monthly payments.
You might get a lower rate if you pay discount points, a point represents one percent of the loan amount, e.g. $1,000 for every $100,000. These points are paid upfront, also known as prepaid interest.
More importantly, the location of the home you’re buying or refinancing affects your rate. Rates in Alabama vary among other states and even among its counties.
Calculating Mortgage Rates in Alabama
You can use online calculators to estimate your monthly loan payments at a certain rate. Or you can compare mortgage rates online. Just enter your zip code, loan amount (purchase or refinance), and credit then click compare top rates in your county in Alabama.
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