Alabama closing cost calculator

Alabama buyers who finance pay a mortgage recording tax of 0.15% of the loan. The deed tax and the owner’s title policy are negotiated, so check what your contract says.

Alabama’s rules checked September 30, 2026Runs in your browser. Nothing you type is saved.

State Closing date

Alabama: Deed tax: 0.1% of the price, and who pays varies. Buyers also pay mortgage recording tax. Owner’s title is usually paid by the seller, though it varies.

Purchase price

$

The loan

Loan type

Down payment

Interest rate

%

Term

Estimated cash to close $52,963

2.5%closing costs

Purchase price$235,000
Down payment (20%)$47,000
- Loan amount$188,000
Loan costs+$2,580
- Origination and lender feesest.+$1,880
- Appraisalest.+$700
Title and closing+$1,350
- Lender’s title insuranceest.+$500
- Settlement or escrow feeest.+$600
- Recording feesest.+$250
Taxes−$1,659
- Deed tax+$235
- Mortgage recording tax+$282
- Property tax credit from the sellerest.−$2,176
Prepaids and escrow+$3,242
- Homeowner’s insurance, first yearest.+$1,500
- Prepaid interest (27 days)est.+$904
- Property tax escrow (3 months)est.+$588
- Insurance escrow (2 months)est.+$250
Other costs+$450
- Home inspectionest.+$450
Cash to close$52,963

Estimated monthly payment$1,509

Principal and interest$1,188
Mortgage insurance$0
Property taxes$196
Insurance$125
HOA dues$0

An estimate, not a Loan Estimate or Closing Disclosure. Your lender's Loan Estimate and the title or escrow company give the final figures. Rates, fees and insurance vary by lender and property.

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A Alabama purchase, worked out

The calculator opens on $235,000, about the median value of an owner-occupied home in Alabama ($233,300, 2024 Census estimate), with 20% down on a 30-year conventional loan and a closing on December 5, 2026.

The buyer brings about $52,963: $47,000 down and $5,963 in closing costs, 2.5% of the price. Alabama’s taxes on the buyer come to $517 of that: deed tax $235, mortgage recording tax $282. The monthly payment comes to about $1,509, with property tax and insurance.

Cash to close on $235,000, 20% down
Down payment	$47,000
Origination and lender feesest.	+$1,880
Appraisalest.	+$700
Lender’s title insuranceest.	+$500
Settlement or escrow feeest.	+$600
Recording feesest.	+$250
Deed tax	+$235
Mortgage recording tax	+$282
Property tax credit from the sellerest.	−$2,176
Homeowner’s insurance, first yearest.	+$1,500
Prepaid interest (27 days)est.	+$904
Property tax escrow (3 months)est.	+$588
Insurance escrow (2 months)est.	+$250
Home inspectionest.	+$450
Cash to close	$52,963

Estimates are tagged “est.”; Alabama’s taxes follow its rules. A “−” is a credit, like the seller’s share of this year’s property tax where it’s paid after the year ends.

At other prices

Alabama’s buyer taxes: the mortgage recording tax (0.15% of the loan). Who pays the deed tax varies; the calculator counts it for the buyer, and you can switch it. Each row has 20% down on a conventional loan.

Price	Alabama’s buyer taxes	Closing costs	Cash to close	Monthly payment
$250,000	$550	$6,072	$56,072	$1,597
$500,000	$1,100	$9,060	$109,060	$3,153
$750,000	$1,650	$12,500	$162,500	$4,730
$1,000,000	$2,200	$16,000	$216,000	$6,307
$2,000,000	$4,400	$29,999	$429,999	$12,613

Buying in Alabama: what to know

Taxes buyers pay

Alabama charges a mortgage recording tax of $0.15 per $100 of the loan (0.15%), which the borrower customarily pays. On a $320,000 loan that is $480.

Deed tax

Alabama charges a deed tax of $0.50 per $500 of value, or 0.1%, collected by the county probate judge. The law only says it must be paid before the deed is recorded; the statewide Realtors contract doesn’t assign it, so who pays is negotiated or set by local custom. When the buyer’s purchase mortgage is recorded with the deed, probate judges apply the deed tax only to the part of the price above the loan.

Title insurance

The statewide Alabama Realtors contract makes the owner’s title policy a buyer expense unless the parties choose otherwise, but in many Alabama markets the seller pays by local custom, and local board forms differ. Treat it as negotiable and follow your contract.

Who runs the closing

Alabama doesn’t require an attorney at closing. Closings are handled by closing attorneys or title and closing agents, and the statewide contract splits the closing agent’s fee 50/50 unless the parties agree otherwise.

Property taxes and escrow

Alabama’s tax year runs October 1 to September 30 and is collected in arrears: bills are due October 1 and become delinquent after December 31. The statewide contract prorates taxes at closing using the tax assessor’s figures, so the seller usually credits the buyer for the part of the year they owned the home.

Buying in Alabama: questions

Is there a mortgage tax in Alabama?

Yes. Alabama charges $0.15 per $100 of the loan amount (0.15%) to record a mortgage, and the buyer usually pays it. A $320,000 loan carries $480 in mortgage tax.

Does Alabama’s deed tax apply to the whole price if I finance?

Not always. When the purchase mortgage is recorded together with the deed, Alabama probate judges apply the 0.1% deed tax only to the part of the price above the loan amount.

Do I need an attorney to close in Alabama?

No. Alabama closings can be handled by a closing attorney or a title or closing agent, and the statewide contract splits the closing agent’s fee between buyer and seller by default.

How much are closing costs in Alabama?

On a $235,000 home with 20% down on a conventional loan, the calculator’s estimates put a Alabama buyer’s closing costs at about $5,963, or 2.5% of the price, and cash to close at $52,963. Alabama’s taxes on the buyer come to $517 of that: deed tax $235, mortgage recording tax $282. Lender fees, insurance and the rate vary, so put in your lender’s Loan Estimate for a closer number.

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