The state of Alabama is a mid-sized state located in the south eastern part of the United States. Alabama is the 30th largest state in terms of land area and 24th largest in terms of population. As of 2015, the state was estimated to have a population of around 4.9 million people. Many of these people live in the metro areas surrounding Birmingham, Mobile, and Montgomery.
Mortgage Laws in Alabama
While Alabama was not as heavily impacted by the subprime mortgage crisis, the state has enacted several new laws and regulations that impact the people that banks can lend to. Mortgage lenders today have to follow more restricted underwriting requirements in regards to the credit score and income that a borrower will have to have. Mortgage lenders are also restricted from originating loans that have either long periods of interest only financing or even negative amortization.
Current Interest Rates in Alabama
Mortgage interest rates in Alabama over the past few years have been historically low. While they have increased a little bit in recent months, interest rates today are still extremely attractive for buyers. Buyers today that meet the required credit score and income underwriting levels will be able to get an interest rate on a 30 year fixed rate mortgage of 4.15%. Those that want a 15-year fixed-rate mortgage or an ARM can get rates closer to 3.25%.
Housing Outlook in Alabama
The future housing outlook in Alabama is considered to be positive overall. Like most states, Alabama was impacted by the housing bubble and credit crunch, but not to the great extent that was experienced elsewhere. Most of the bigger cities have seen a strong price and value recovery over the past few years. The city of Birmingham has seen a large increase in residential demand over the past few years due largely to the improved economy and job outlook in that city. This has had a big impact on housing prices in the city and surrounding areas.
5 Biggest Cities in Alabama
While most people would consider Alabama to be full of smaller communities, there are actually several big cities in the state. With a population of 215,000 people, Birmingham is the most populated city in the state. A close second to Birmingham is Mobile, which has a population of around 205,000 Montgomery, Alabama also has a population in that range. In 2015, it was estimated that Montgomery has a population of 195,000 people. With 180,000 residents, Huntsville is the fourth most populated city and with 90,000 residents Tuscaloosa is the fifth most populated city in Alabama.