Current Mortgage Refinance Rates in Alabama (December 2024)

fact checked icon

Updated: January 14, 2025

Advertising & Editorial Disclosure

The current mortgage refinance rates in Alabama for a 30-year fixed loan stand at 6.13%, while the 15-year fixed loan is at 5.15%. In comparison, the national average refinance rates are slightly higher, with the 30-year fixed at 6.45% and the 15-year fixed at 5.38%.

We provide you with a comprehensive guide to refinancing your mortgage in Alabama, offering insights into current trends, the refinancing process, and timing considerations. Explore how credit scores and loan types affect your refinance rates, empowering you to make informed decisions.

MoneyGeek used Zillow data for the rates on this page. Because mortgage rates shift daily, we use a snapshot to analyze rate information for Alabama. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless noted otherwise, featured rates are annual percentage rates (APRs).

recency icon

This data was last updated in December 2024.

Current Mortgage Refinance Rates in Alabama

The current 30-year refinance rate in Alabama is 6.13%. According to Experian, the average mortgage debt in Alabama is $171,883 as of September 2023.

If your current mortgage rate is higher, refinancing your mortgage could be a smart way to manage your debt. By potentially lowering your monthly payments and reducing the total interest paid, refinancing can offer significant savings. Below are the current refinance rates in Alabama to explore your options.

15-Year Fixed5.83%5.95%
30-Year Fixed6.56%6.64%

Mortgage Refinance Rate Trends in Alabama

In December, refinance rate trends in Alabama show a downward movement for 15-year refinance rates to 5.95%. This suggests that homeowners looking for shorter-term loans might benefit from refinancing now.

Furthermore, 30-year refinance rates in Alabama are experiencing an downward trend to 6.64%. This could impact those considering longer-term refinancing options, potentially leading to lower costs over the loan's duration.

Alabama Mortgage Refinance Rate Trends 2024
mglogo icon
WHY DO INTEREST RATES GO UP?

Interest rates often rise due to US Federal Reserve policies, economic conditions, and inflation. These factors also influence refinance rate trends in Alabama. Understanding these elements can provide clarity on how rates are shaped.

How to Refinance a Mortgage in Alabama

Refinancing your mortgage in Alabama can lead to lower monthly payments or interest rates. By understanding the steps involved, you can make informed decisions that may improve your financial situation. Let's explore how you can navigate this process smoothly.

  1. 1

    Check Your Credit Score

    Credit scores impact the rates you qualify for. A lower score may mean higher rates. Improve your score by paying off debts. Alabama's average score is 692. Aim to match or exceed this for better rates.

  2. 2

    Determine When to Refinance a Mortgage

    Compare your current mortgage terms with market rates. If Alabama's rates of 6.13% for 30-year and 5.15% for 15-year loans are lower, consider refinancing. Think about how long you'll stay in your home to maximize benefits.

  3. 3

    Gather Necessary Documents

    Collect documents like tax returns, bank statements, and pay stubs to streamline the process. Having these ready can speed up the refinancing of your original mortgage.

  4. 4

    Shop Around for Lenders

    Compare lenders to find the best rates, terms, and fees. Look for transparency, customer service, and reputation. Shopping around can lead to significant savings over the life of your loan.

  5. 5

    Understand the Costs Involved

    Be aware of closing costs, appraisal fees, and other expenses. According to the National Association of Realtors, Alabama's closing costs average $2,400.31. Planning for these can prevent surprises.

  6. 6

    Apply for the Loan

    Submit your application with your chosen lender. Ensure all information is accurate to avoid delays. Consider using online tools to track your application status and stay updated throughout the process.

  7. 7

    Lock in Your Interest Rate

    Secure your rate with a mortgage rate lock to avoid fluctuations. This step ensures you get the agreed rate, protecting you from potential market changes.

  8. 8

    Close on Your New Loan

    Review and sign your closing documents. Ensure all terms align with your agreement. Scheduling an early closing can help address any last-minute issues without stress.

  9. 9

    Start Making Payments on Your New Loan

    Begin payments as per your new loan schedule. Setting up automatic payments can help you stay on track and avoid late fees, ensuring a smooth transition to your new mortgage.

  10. 10

    Reevaluate When to Refinance a Mortgage

    Periodically review your mortgage terms against market rates. If conditions change, refinancing again might be beneficial. Keeping an eye on market trends can help you decide when it's time to refinance for better terms.

mglogo icon
HOW SOON CAN YOU REFINANCE A MORTGAGE?

In Alabama, how soon you can refinance a mortgage depends on the type of loan you have. For conventional loans, you can usually refinance immediately, although a cash-out refinance typically requires a six-month seasoning period. USDA loans, on the other hand, generally necessitate a 12-month waiting period before refinancing, ensuring the property still meets USDA guidelines.

With October's refinance rate at 6.13%, lower than previous months, it might be a good time to consider refinancing if the rates are favorable. However, it's crucial to remember that refinancing comes with additional closing costs, which can take years to recoup. So, while you could refinance a mortgage within a year, it's often not worth it unless there's a drastic reduction in interest rates.

When to Refinance a Mortgage

Refinancing your mortgage in Alabama can lower your interest rates and monthly payments. However, be mindful of closing costs that might offset these savings. Recognizing when to refinance a mortgage in Alabama ensures you make a sound financial move. Let's explore scenarios where refinancing could be advantageous.

    lowInterestAPR icon

    Lower Interest Rates

    Refinancing when interest rates drop can lower your monthly payments. Visiting local banks and credit unions to discuss rate options can help you secure the best deal. This approach ensures you benefit from reduced rates without relying on online tools.

    house2 icon

    Increased Home Value

    Refinancing is advantageous when your home's value rises, boosting home equity. Enhancing curb appeal or upgrading interiors can increase value. With Alabama's average home value at $232,529, this strategy can improve refinancing terms.

    goodCredit icon

    Improved Credit Score

    A better credit score can lead to favorable refinancing terms. Paying bills on time and reducing debt are practical steps to enhance your score. This improvement can open doors to lower interest rates and better loan conditions.

    calendar icon

    Shorter Loan Term

    Opting for a shorter loan term through refinancing can save on interest and pay off your mortgage faster. This strategy reduces the total interest paid over the life of the loan, offering financial freedom sooner.

    fixedRate icon

    Switch Loan Type

    Switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage can stabilize your payments. This change protects against rate fluctuations, providing predictable monthly expenses and long-term financial planning benefits.

Mortgage Refinancing in Alabama: Is It Right for You?

Use MoneyGeek's free mortgage refinance calculator to help determine whether refinancing is beneficial for your situation.

Mortgage Refinance Calculator

Make sure refinancing your existing home loan will save you money.

Current Mortgage
$
%
New Mortgage
%

Calculation Results

Total Savings:

$0

By refinancing, you’ll pay $0

0
Monthly Payments
Total Payments
Total Interest
Current Loan
$0
-
$0
-
$0
-
New Loan
$0
=
$0
=
$0
=
Savings
$0
$0
$0

Today's Mortgage Refinance Rates in Alabama by Credit Score

Your credit score affects the rates you qualify for in Alabama. For example, the current average refinance rates in Alabama for a 30-year fixed rate loan with a loan-to-value ratio of 80% or lower equate to 6.92% for scores between 680 and 740, compared to 6.64% for scores above 740. Explore the table below for more rates.

Data filtered by:Results filtered by:
Select
Loan Type:15-year Fixed
Select
Credit Score Range:680 - 740
Select
Loan-to-Value Ratio:80% - 95%
6.33%6.76%

Mortgage Refinance Rates in Alabama by Loan Type

Loan type is another factor that can affect the rates you qualify for in Alabama. For example, the current average refinance rates in Alabama for a 30-year fixed rate loan are 6.64% for conventional loans and 7.69% for FHA loans. The table below shows average APRs for different loan types in Alabama.

Data filtered by:Results filtered by:
Select
Loan Type:10-Year Fixed
4.89%5.05%

FAQ: Today's Mortgage Refinance Rates in Alabama

With market conditions constantly changing, it's natural for Alabama homeowners to question how these rates can impact their mortgages and refinance options. We've gathered and addressed the most common questions about refinance rates in Alabama, providing you with clear and factual information.

Should you refinance your mortgage?

How to get the best mortgage refinance rate?

What are the pros and cons of a mortgage refinance?

How much does it cost to refinance a mortgage?

What is the mortgage refinance rate in Huntsville?

About Zachary Romeo, CBCA

Zachary Romeo, CBCA headshot

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

Read Full Bio »
sources

MoneyGeek Address:1325 Howard Ave, Suite 338
Burlingame, CA 94010

MoneyGeek Phone:904-878-4335

Insurance
Mortgage
Credit Cards
Loans
About MoneyGeekPressPrivacy PolicySitemap
Copyright © 2025 MoneyGeek.com. All Rights Reserved Terms of Use