Alabama variant. This is a Alabama-specific version of the Mortgage Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Mortgage Calculator.
With a median home value of $230,000 and an effective property tax rate of 0.41%, a typical Alabama mortgage payment combines principal, interest, taxes, and insurance into a meaningfully different number than the sticker price suggests.
What drives a Alabama mortgage payment
On the $230,000 median home with 20% down ($46,000), you'd finance about $184,000. At an illustrative 6.5% 30-year fixed rate, the principal-and-interest payment is roughly $1,163/month.
Alabama's 0.41% effective property tax adds about $79/month, and homeowners insurance plus any PMI push the all-in payment higher still. Enter your real price, rate, and down payment above for an exact figure.
About taxes and housing in Alabama
Alabama applies a low graduated income tax that tops out at 5%, and it is one of the few states that still allows a full deduction for federal income taxes paid.
Alabama has one of the lowest effective property tax rates in the country, helping keep overall homeownership costs modest.
Alabama's economy blends automotive manufacturing, aerospace, and agriculture, and the state is known for a below-average cost of living.
Worked example: $230,000 home in Alabama
Price $230,000, 20% down ($46,000), loan $184,000 at 6.5% for 30 years → P&I ≈ $1,163/mo. Add property tax ≈ $79/mo (0.41% of value ÷ 12). Total before insurance ≈ $1,242/mo.
Quick reference
- State income tax: 0% on first $500, 5% over $3,000
- State sales tax: 4% (plus 5.29% avg local)
- Median home value: $230,000
- Median household income: $60,660
- Effective property tax rate: 0.41%
- Avg auto insurance: $1,542/yr
Frequently Asked Questions
How much is a mortgage on a $230,000 Alabama home?
With 20% down at 6.5% over 30 years, principal and interest run about $1,163/month, before Alabama's 0.41% property tax and insurance.
What is the property tax rate in Alabama?
Alabama's effective property tax rate is about 0.41% of home value per year.