Alabama closing cost calculator

Typical Alabama home value, September 2026: $238,614 (Zillow Home Value Index). We rounded it to $239,000. The loan comes to $191,200 with 20% down ($47,800). Cash to close comes to $53,529, including the down payment plus the buyer's closing costs.

Every title insurer files rates with the state and may also file reissue rates. If a lender's title policy gets issued during a sale, buyers must be told that they can also purchase owner coverage.

Seller charges add up to $239 in this example; commission and paying off the seller's mortgage aren't included.

The September 2026, Alabama market showed home values of $119,666 in its lower-priced third and $430,692 in its higher-priced third. Those home types had buyer closing costs that ranged from $3,846 to $10,262 with 20% down.

In Alabama, a buyer of a $400,000 home with 20% down pays about $8,270. Across the 50 states and DC, the midpoint is $7,850, which puts Alabama $420 above it. At that price, sellers pay $400 before commission and mortgage payoff, $40 less than the midpoint.

Buyer and seller costs can be estimated once you enter your sale price and down payment. Our $239,000 example assumes 20% down. A commission appears only if you enter a commission rate.

The total leaves out one charge, because the calculator has no Alabama recording line. Every county probate office determines its own recording fees. Mobile and Montgomery counties charge $2.50 per page. Baldwin County recording fees list $13 for page one and $3 for each later page. Each taxable document recorded in Mobile County carries an added $10 special tax.

In Alabama, recording the deed means paying a deed tax of 0.1% based on the price. For a $239,000 home, the amount is $239; our calculator shows it as a seller cost.

A mortgage recording tax equal to 0.15% of the loan is also the buyer's responsibility. For a deed to be recorded, the buyer has to give proof of the actual purchase price or file Form RT-1.

The state tax comes to $400 on a $400,000 sale. When states are counted from the highest amount, Alabama comes in 29th among those 36 states, plus DC, which levy this tax.

If the mortgage tax is paid, Mobile County taxes only the price above the mortgage when the deed and the purchase mortgage get recorded together. Withholding Alabama income tax for an out-of-state seller is a buyer duty apart from this tax.

The national average for buyer's agents is about 2.42% of the price. The commission rate comes from your agreement with your agent. Your calculator can show the amount once you enter your agreed rate.

No. People who aren't attorneys may handle real estate closings in Alabama. State law limits what they may do, such as preparing deeds and other legal documents, plus giving legal advice.