Mortgage Rates in Homewood, Alabama — March 2026
Updated March 2026 | Based on Homewood market data and regional lending conditions
Homewood is a growing city in Alabama with a population of 25,823. The current 30-year fixed mortgage rate in Homewood is 6.65%, which is at the national average. With a median home price of $152,000 and a 20% down payment of $30,400, homebuyers can expect a monthly principal and interest payment of approximately $781.
Current Mortgage Rates in Homewood, AL
Below are the current average mortgage rates available in the Homewood 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 | 6.65% | 6.65% | 0% |
| 15-Year Fixed | 5.91% | 5.89% | +0.02% |
| 5/1 ARM | 6.19% | 6.15% | +0.04% |
| FHA | 6.45% | 6.25% | +0.2% |
| VA | 6.2% | 6.05% | +0.15% |
| Jumbo | 6.9% | 6.85% | +0.05% |
Homewood Housing Market Overview
The Homewood housing market offers relatively affordable housing compared to many major cities. The median household income in Homewood is $45,300, and the cost of living index is 80.5 (national average = 100). Based on the 28% affordability rule, the median income in Homewood is sufficient to afford the median-priced home.
Monthly Payment Breakdown for Homewood
Based on the median home price of $152,000 with 20% down ($30,400), here is what you can expect to pay monthly in Homewood:
15-Year vs. 30-Year Mortgage in Homewood
Choosing a 15-year mortgage in Homewood at 5.91% instead of a 30-year at 6.65% would save you $97,560 in total interest over the life of the loan. However, your monthly payment would be $1,020 instead of $781 — an increase of $239 per month.
Calculate Your Homewood 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 Homewood
What are the current mortgage rates in Homewood, AL?
As of March 2026, the average 30-year fixed mortgage rate in Homewood, Alabama is 6.65%, while the 15-year fixed rate is 5.91%. FHA loans average 6.45% and VA loans 6.2%. These rates are at the national average of 6.65%.
How much is a monthly mortgage payment in Homewood?
Based on the median home price of $152,000 with 20% down, the estimated monthly mortgage payment in Homewood is $781 for principal and interest. Including property taxes of $53/month, the total monthly housing cost is approximately $834.
What income do I need to buy a home in Homewood?
Using the 28% rule, you would need an annual income of approximately $35,743 to afford the median-priced home in Homewood at $152,000. The median household income in Homewood is $45,300. The median income is currently sufficient to meet this threshold.
Is Homewood a good place to buy a home in 2026?
Homewood offers a below-average cost of living with a cost of living index of 80.5 (national average = 100). The property tax rate in Alabama is 0.42%, which is below the national average. Homewood has a population of 25,823 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 Homewood, Alabama area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.