For most people, the largest expense and greatest asset they’ll own in their lifetime is their home.  A lot of money, time, and our lives go into home ownership and care.  In today’s economy, most experts agree that this is a buyer’s market and some of the best home loans in Alabama are available right now.    We here at Peak Personal Finance are going to show you, state-by-state, where to shop for the best mortgage for your new home.

In finding the best home mortgage rates in Alabama, we made a few assumptions.  First, we assume your credit score is at least 700, your loan will be about $160,000 and you’ll have a 5% down payment and can pay any fees (2-5% of home value) as well.

The most popular and common loan is a 30-year fixed and the best home mortgage rates are at Quicken Loans, with 0 points and 5.867% annual percentage rate (APR).  This has $2,088 in fees and Quicken offers a 45-day lock and estimates payments at $963/month for this loan.

A 30-year fixed FHA mortgage at AimLoan.com can be at 5.61% APR with no points and $1,995 in fees.  They offer a 60 day lock and estimate payments at $937/month.

For a 15 year fixed rate, we again go to Quicken Loan for the best mortgage rates in Alabama with a 5.297% APR, no points, and $1,844 in fees.  This can also be locked for 45 days and estimated payments are $1,316 per month.

For adjustable rate mortgages (ARM) loans, there are no offers in Alabama under this criteria.  If your credit is under 700 points, but above 670, you will likely qualify for these same loans with either a higher fee or a slightly higher APR.

Of course, your situation will vary, so check with your financial advisor and mortgage broker before making a choice or locking yourself into a home loan.  Hopefully, these best mortgage interest rates listed will help you in your hunt.