Quick answer
The median home in Birmingham costs $230K. With 20% down ($46K) at 7% for 30 years, the monthly payment is $1,224/month. Total interest paid over 30 years: $256,696.
Calculator · AL · 2026
Mortgage Calculator for Birmingham, AL (2026)
Pre-filled with Birmingham's median home price of $230K. Compare payments across down payment sizes and loan terms at the current 7.0% baseline rate.
Last updated: April 23, 2026
Birmingham Mortgage Payment Scenarios
Median home price: $230K · Interest rate: 7% · Excludes property taxes and insurance.
| Down Payment | Down ($) | Loan Amount | 30-yr/mo | 15-yr/mo | Total Interest (30yr) |
|---|---|---|---|---|---|
| 5% | $11,500 | $218,500 | $1,454 | $1,964 | $304,827 |
| 10% | $23,000 | $207,000 | $1,377 | $1,861 | $288,783 |
| 20% | $46,000 | $184,000 | $1,224 | $1,654 | $256,696 |
PMI required for <20% down — add ~$100–300/month to payments above.
Rent vs Buy in Birmingham
Monthly cost comparison based on median prices — 20% down, 30-year mortgage at 7%.
Buying (median home)
+ builds equity in $230K asset
Renting (2-bedroom)
Flexibility to move; no equity built
Amortization Over Time
$230K home · 20% down ($184K loan) · 7% · 30 years
Year 1
Year 15
Year 30 (Final)
Frequently Asked Questions
What is the monthly mortgage payment for a home in Birmingham?
The median home price in Birmingham is $230K. With 20% down and a 30-year loan at 7%, the monthly payment is $1,224. Adding estimated property taxes and insurance brings total monthly costs to approximately $1,454.
Is it cheaper to rent or buy in Birmingham?
A 2-bedroom rental in Birmingham averages $1,400/month. Buying the median $230K home with 20% down costs approximately $1,454/month (mortgage + taxes + insurance) — $54 more than renting. However, buying builds equity while renting does not.
How much do I need to earn to buy a home in Birmingham?
Using the 28% housing rule, you need at least $52K–62K in annual gross income to comfortably afford the median $230K home in Birmingham with 20% down. You also need $46K+ saved for the down payment plus 2–5% in closing costs.
What are property taxes like in Birmingham?
AL has a state income tax rate of 5%. Property taxes vary by county but on a $230K home, expect $192–$383/month in property taxes (1–2% annual rate). This is in addition to your mortgage payment.