Mortgage Rates in Troy, AlabamaMarch 2026

Updated March 2026 | Based on Troy market data and regional lending conditions

30-Year Fixed
6.75%
15-Year Fixed
5.99%
Median Home Price
$167,000
Est. Monthly Payment
$921

Troy is a growing city in Alabama with a population of 18,983. The current 30-year fixed mortgage rate in Troy is 6.75%, which is 0.1% above the national average. With a median home price of $167,000 and a 20% down payment of $33,400, homebuyers can expect a monthly principal and interest payment of approximately $867.

Current Mortgage Rates in Troy, AL

Below are the current average mortgage rates available in the Troy 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 TypeRateNational AvgDifference
30-Year Fixed6.75%6.65%+0.1%
15-Year Fixed5.99%5.89%+0.1%
5/1 ARM6.25%6.15%+0.1%
FHA6.5%6.25%+0.25%
VA6.25%6.05%+0.2%
Jumbo7%6.85%+0.15%

Troy Housing Market Overview

The Troy housing market offers relatively affordable housing compared to many major cities. The median household income in Troy is $53,800, and the cost of living index is 79.2 (national average = 100). Based on the 28% affordability rule, the median income in Troy is sufficient to afford the median-priced home.

Population
18,983
Median Income
$53,800
Property Tax Rate
0.39%
Cost of Living
79.2
Down Payment (20%)
$33,400
Income Needed
$39,471

Monthly Payment Breakdown for Troy

Based on the median home price of $167,000 with 20% down ($33,400), here is what you can expect to pay monthly in Troy:

Principal & Interest (30-yr at 6.75%)$867
Property Tax$54
Estimated Insurance$42
Total Estimated Monthly$963

15-Year vs. 30-Year Mortgage in Troy

Choosing a 15-year mortgage in Troy at 5.99% instead of a 30-year at 6.75% would save you $109,260 in total interest over the life of the loan. However, your monthly payment would be $1,127 instead of $867 — an increase of $260 per month.

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Frequently Asked Questions About Mortgages in Troy

What are the current mortgage rates in Troy, AL?

As of March 2026, the average 30-year fixed mortgage rate in Troy, Alabama is 6.75%, while the 15-year fixed rate is 5.99%. FHA loans average 6.5% and VA loans 6.25%. These rates are 0.1% above the national average of 6.65%.

How much is a monthly mortgage payment in Troy?

Based on the median home price of $167,000 with 20% down, the estimated monthly mortgage payment in Troy is $867 for principal and interest. Including property taxes of $54/month, the total monthly housing cost is approximately $921.

What income do I need to buy a home in Troy?

Using the 28% rule, you would need an annual income of approximately $39,471 to afford the median-priced home in Troy at $167,000. The median household income in Troy is $53,800. The median income is currently sufficient to meet this threshold.

Is Troy a good place to buy a home in 2026?

Troy offers a below-average cost of living with a cost of living index of 79.2 (national average = 100). The property tax rate in Alabama is 0.39%, which is below the national average. Troy has a population of 18,983 and offers a very affordable lifestyle.

Mortgage Rates in Other Alabama Cities

Birmingham, AL
6.77% | $115,000
Huntsville, AL
6.77% | $265,000
Mobile, AL
6.77% | $145,000
Montgomery, AL
6.77% | $155,000
Tuscaloosa, AL
6.77% | $215,000

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Last updated: March 2026. Rates are approximate averages based on regional lending data for the Troy, Alabama area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.