| Transfer tax | Deed tax $0.50 per $500 of value (0.1%). |
|---|---|
| Usually paid by | Buyer (customary) |
| Mortgage tax | Mortgage tax $0.15 per $100 of mortgage debt. |
| Attorney at closing | Required |
| Recording | Recording fees are set by the county probate office, typically a flat fee per document plus per-page charges. |
What drives your total
Lender fees, title insurance, prepaid taxes and insurance, and any points you buy move the number most. On a $400,000 purchase, 2–5% means roughly $8,000–$20,000 at the table, your Loan Estimate itemizes every dollar three business days before closing.
Ways to reduce cash to close
- Seller credits (negotiated in the contract, program limits apply)
- Lender credits in exchange for a slightly higher rate
- Down payment assistance programs where available
- Closing on time, per-diem interest accrues daily
Sources: Tax Foundation 2026 (2024 ACS); NAR/NCSL transfer tax table. Figures are typical ranges, not quotes.
FAQ
How much are closing costs in Alabama?
Buyer closing costs in Alabama typically run 2–5% of the purchase price. State-specific items include: Deed tax $0.50 per $500 of value (0.1%). Mortgage tax: Mortgage tax $0.15 per $100 of mortgage debt.
Who pays transfer tax in Alabama?
Customarily the buyer (customary) pays the transfer tax in Alabama, though it is negotiable in the contract.
Does Alabama require an attorney at closing?
Yes, Alabama is an attorney-closing state, so budget for attorney fees at the closing table.