Alabama · Q1 2026
What Alabama borrowers paid in mortgage closing costs in 2025, drawn from FFIEC HMDA filings across 594 lenders.
Published 2026-04-29.
Alabama · headline
The gap between Alabama's lowest- and highest-cost ranked lenders in 2025 was $7,486 on a typical loan — borrowers using Canopy Mortgage, LLC paid roughly 295% more than borrowers using Regions Bank on similar loans.
Source: FFIEC HMDA 2025 (n=78,923)
In 2025, 594 mortgage lenders originated 78,923 reportable loans in Alabama according to FFIEC HMDA data. The median borrower paid $5,150 in total loan costs. That is 21.4% above the national median across all 50 states and DC.
Alabama's median total loan cost was $5,150, 21.4% above the national median of $4,242. On a typical loan, that translates to roughly $908 more than borrowers paid in the average state.
Regions Bank posted the lowest median total loan costs at $2,534, 50.8% below the Alabama median. Across the ranked lenders, 8 earned an A grade against peer averages and 2 fell to D or F.
Lower bars = lower median total loan costs. Hover (or tap) bars for sample size and grade. Bar color groups lenders into cost quartiles.
Lenders below 30 records in Alabama are excluded from this ranking. See full methodology.
Same 10 lenders as the chart above, ranked here by 2025 HMDA loan count.
| # | Lender | Median total cost | Median origination | Reports | Grade |
|---|---|---|---|---|---|
| 1 | Rocket Mortgage | $5,248 | $3,250 | 6,768 | A |
| 2 | United Wholesale Mortgage | $7,084 | $3,409 | 4,918 | D |
| 3 | Regions Bank | $2,534 | $1,918 | 2,720 | A |
| 4 | Mortgage Research Center, LLC | $3,299 | $2,386 | 2,471 | A |
| 5 | DHI Mortgage Company, LTD. | $6,398 | $1,500 | 2,289 | C |
| 6 | Trustmark Bank | $4,387 | $1,652 | 2,029 | A |
| 7 | Guild Mortgage | $6,428 | $2,572 | 1,805 | C |
| 8 | Pennymac | $5,086 | $2,570 | 1,745 | A |
| 9 | Fairway Independent Mortgage | $5,544 | $2,196 | 1,683 | A |
| 10 | Freedom Mortgage | $5,666 | $3,426 | 1,659 | A |
Alabama median total loan cost
Alabama borrowers paid a median $5,150 in total loan costs in 2025, based on 78,923 HMDA-reported loans across 594 lenders.
FFIEC HMDA 2025
Lender spread in Alabama
In Alabama, the gap between Regions Bank ($2,534 median) and Canopy Mortgage, LLC ($10,020 median) was $7,486 on a typical 2025 loan.
FFIEC HMDA 2025
Alabama vs. national
Alabama closing costs ran 21.4% above the national median ($4,242) in 2025.
FFIEC HMDA 2025
The median origination charge in Alabama was $2,246, with the typical lender clustering tightly around that figure. Discount points appeared on 57% of loans, with a median paid amount of $2,045 when present — meaningful enough that shoppers should ask whether quoted points actually buy down their rate cost-effectively. Lender credits offsetting closing costs were issued on 35% of loans, with a median credit of $207.
Avg $3,432
Median $2,045 when present
Median $207 when issued
HMDA itemizes origination, discount points, and lender credits. Title insurance, recording fees, and transfer tax (relevant in Alabama) are not separately reported in HMDA — see our state benchmark page for those. See full methodology.
Related pages for Alabama
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