Closing costs in Alabama
On a $500,000 home with 20% down, buyers in Alabama typically pay about $7,533 to $16,200 at closing, including prepaid taxes and insurance.
Typical buyer total1.5%–3.2%Of the price, 20% down
Closings handled byA title or settlement companyCustomary in the state
Buyer-paid taxes1See below
Buyer-paid taxes
| Tax | On $500,000 with 20% down | Note |
|---|---|---|
| Mortgage tax (0.15% of the loan) | $600 |
Estimated closing costs by price
| Price | Loan | Closing costs | Share of price |
|---|---|---|---|
| $300,000 | Conventional, 20% down | $6,060 – $12,800 | 2.0%–4.3% |
| $300,000 | FHA, 3.5% down | $6,483 – $13,786 | 2.2%–4.6% |
| $500,000 | Conventional, 20% down | $7,533 – $16,200 | 1.5%–3.2% |
| $500,000 | FHA, 3.5% down | $8,238 – $17,843 | 1.6%–3.6% |
| $750,000 | Conventional, 20% down | $9,375 – $20,450 | 1.3%–2.7% |
| $750,000 | FHA, 3.5% down | $10,432 – $22,915 | 1.4%–3.1% |
Who pays what in Alabama
Alabama’s deed tax ($0.50 per $500 of the price) is customarily paid by the seller, though it can be negotiated.
By custom here the seller usually pays for the owner’s title policy; the buyer pays for the lender’s policy.
Questions
How much are closing costs for buyers in Alabama?
Often about 1.5% to 3.2% of the price with 20% down, including prepaid taxes and insurance.
Do buyers pay transfer tax in Alabama?
Buyers typically pay: Mortgage tax.
More for Alabama
Sources: Alabama Department of Revenue (recordation tax, Code of Alabama §40-22-1, §40-22-2). Fees are typical ranges, not quotes; your Loan Estimate lists the actual costs.