Mortgage Rates in Birmingham, Alabama — March 2026
Updated March 2026 | Based on Birmingham market data and regional lending conditions
Birmingham is a mid-sized city in Alabama with a population of 200,733. The current 30-year fixed mortgage rate in Birmingham is 6.77%, which is 0.12% above the national average. With a median home price of $115,000 and a 20% down payment of $23,000, homebuyers can expect a monthly principal and interest payment of approximately $598.
Current Mortgage Rates in Birmingham, AL
Below are the current average mortgage rates available in the Birmingham area as of March 2026. Rates vary by lender, credit score, and loan-to-value ratio. Use our free calculator above to see your personalized estimate.
| Loan Type | Rate | National Avg | Difference |
|---|---|---|---|
| 30-Year Fixed | 6.77% | 6.65% | +0.12% |
| 15-Year Fixed | 6.01% | 5.89% | +0.12% |
| 5/1 ARM | 6.27% | 6.15% | +0.12% |
| FHA | 6.37% | 6.25% | +0.12% |
| VA | 6.17% | 6.05% | +0.12% |
| Jumbo | 6.97% | 6.85% | +0.12% |
Birmingham Housing Market Overview
The Birmingham housing market offers relatively affordable housing compared to many major cities. The median household income in Birmingham is $37,988, and the cost of living index is 85.5 (national average = 100). Based on the 28% affordability rule, the median income in Birmingham is sufficient to afford the median-priced home.
Monthly Payment Breakdown for Birmingham
Based on the median home price of $115,000 with 20% down ($23,000), here is what you can expect to pay monthly in Birmingham:
15-Year vs. 30-Year Mortgage in Birmingham
Choosing a 15-year mortgage in Birmingham at 6.01% instead of a 30-year at 6.77% would save you $75,420 in total interest over the life of the loan. However, your monthly payment would be $777 instead of $598 — an increase of $179 per month.
Calculate Your Birmingham Mortgage Payment
Use our free calculator to get a personalized estimate based on your loan amount, interest rate, and term.
Open Free CalculatorFrequently Asked Questions About Mortgages in Birmingham
What are the current mortgage rates in Birmingham, AL?
As of March 2026, the average 30-year fixed mortgage rate in Birmingham, Alabama is 6.77%, while the 15-year fixed rate is 6.01%. FHA loans average 6.37% and VA loans 6.17%. These rates are 0.12% above the national average of 6.65%.
How much is a monthly mortgage payment in Birmingham?
Based on the median home price of $115,000 with 20% down, the estimated monthly mortgage payment in Birmingham is $598 for principal and interest. Including property taxes of $39/month, the total monthly housing cost is approximately $637.
What income do I need to buy a home in Birmingham?
Using the 28% rule, you would need an annual income of approximately $27,300 to afford the median-priced home in Birmingham at $115,000. The median household income in Birmingham is $37,988. The median income is currently sufficient to meet this threshold.
Is Birmingham a good place to buy a home in 2026?
Birmingham offers a below-average cost of living with a cost of living index of 85.5 (national average = 100). The property tax rate in Alabama is 0.41%, which is below the national average. Birmingham has a population of 200,733 and offers a very affordable lifestyle.
Mortgage Rates in Other Alabama Cities
Related Tools & Guides
Last updated: March 2026. Rates are approximate averages based on regional lending data for the Birmingham, Alabama area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.