Mortgage Calculator & Closing Costs: Montgomery, AL
Mortgage payment estimates, closing cost breakdowns, and homebuying data for Montgomery, Alabama.
Median Home Price
$175K
Population
201K
Avg Monthly Rent
$1,050
Property Tax Rate
0.41% *
* Property tax shown is the Alabama state average effective rate. Actual rates vary by county, city, and school district — check with your local assessor for exact rates in Montgomery.
Montgomery vs Alabama Median
The median home price in Montgomery is $175,000, which is 24% below the Alabama state median of $230,000.
Mortgage Calculator — Montgomery, AL
Pre-filled with Montgomery median home price and Alabama tax/insurance rates. Adjust for your property.
Three down payment scenarios for a $175K home using Alabama's 0.41% tax rate and $1,950/yr insurance.
5% Down
$1,370/mo
Down: $8,750
Loan: $166K
P&I: $1,051
Tax: $60
Insurance: $163
PMI: $97
10% Down
$1,310/mo
Down: $17,500
Loan: $158K
P&I: $996
Tax: $60
Insurance: $163
PMI: $92
20% Down (No PMI)
$1,107/mo
Down: $35,000
Loan: $140K
P&I: $885
Tax: $60
Insurance: $163
Income needed (28% rule): $47K/year with 20% down, $56K/year with 10% down.
Rent vs Buy in Montgomery
Rent
$1,050/mo
vs
Buy (10% down)
$1,310/mo
Price-to-rent ratio: 13.9 — With a ratio under 15, buying in Montgomery is likely more cost-effective than renting if you plan to stay 3+ years. The monthly cost of buying is $260 more than renting, but you build equity with every payment.
The median home price in Montgomery is $175,000, 24% below the Alabama state median of $230,000. With a population of 200,603, Montgomery is a mid-size city where home prices tend to be more accessible than in many parts of Alabama.
Property taxes in Alabama average 0.41% annually. This low property tax rate is a significant advantage for Montgomery buyers, keeping your monthly costs well below what you'd pay in higher-tax states. Homeowners insurance in Alabama runs approximately $1,950 per year. This is within the normal range nationally.
Average rent in Montgomery is $1,050/month. With a price-to-rent ratio under 15, buying may be more cost-effective than renting in Montgomery over the long term.
Montgomery offers strong affordability. With median prices under $250K, first-time buyers have realistic paths to homeownership, especially combined with Alabama's Alabama Housing Finance Authority Step Up program.
Run a Rent vs Buy analysis
Compare total costs of renting vs buying in Montgomery.