A 16-year-old was trapped inside the burning Swan Street home in North Albury after fire broke out about 9.30am on Monday.

Firefighters risked their lives by entering the home despite thick smoke and intense heat, to remove the injured girl.

She had stab wounds and burns.

Neighbour Adam Farrar said he had been home when he heard shouting and was shaken by what occurred.

"I woke up this morning and heard a bunch of yelling and screaming and the window next to my house is on fire," he said.

"I just got my dog out of the house, called the fire brigade and then everyone rocked up.

"I could smell smoke, that's what woke me up in the first place, and saw the flames and I kind of freaked out.

"I'm a bit shaken up.

"The girl that was trapped inside, I went to school with her ... that's what's got me shaken up a little bit.

"When I walked outside and saw the fire, I thought 'this is really bad'."

Superintendent Stewart Alexander said Fire and Rescue NSW received a number of triple zero calls about 9.30am with a house on Swan Street, near the intersection of Teal Street, well alight.

"Some really good firefighting efforts have managed to rescue the female and bring the house under control," he said.

"The work by firefighters to rescue the woman is outstanding.

"Absolutely (they have put themselves in danger) but they are very well trained and well prepared to handle these kinds of situations."

The girl underwent surgery at Albury hospital and was in a stable condition on Monday afternoon.

Speaking a short time after the incident, Detective Chief Inspector Winston Woodward said no arrests had been made.

The fire is being treated as suspicious.

"I believe she is lucky," he said.

"The fire could have taken hold further.

"She hasn't been able to get from the premises of her own accord."

He urged anyone with information to call (02) 6023 9299 or 1800 333 000.

11AM: Albury Fire and Rescue NSW Superintendent Stewart Alexander has lauded the efforts of firefighters in rescuing a woman from a North Albury home on Monday morning.

Superintendent Alexander said Fire and Rescue NSW received a number of 000 calls about 9.30am with a house on Swan Street, near the intersection of Teal Street, well alight.

"Some really good firefighting efforts have managed to rescue the female and bring the house under control," he said.

"The work by firefighters to rescue the woman is outstanding.

"Absolutely (they have put themselves in danger) but they are very well trained and well prepared to handle these kinds of situations."

IN OTHER NEWS:

Neighbour Adam Farrar, 18, said he woke to "red-hot" flames and immediately called triple zero.

"I woke up this morning and heard a bunch of yelling and screaming and the window next to my house is on fire," he said.

"I just got my dog out of the house, called the fire brigade and then everyone rocked up.

"I could smell smoke and saw the flames and I kind of freaked out.

"I'm a bit shaken up."

10AM: Firefighters, police and paramedics were on the scene of a massive house fire in North Albury.

Emergency services were called to the house on Swan Street, near the intersection of Teal Street, on Monday morning.

Large plumes of smoke were visible across Albury with the fibro home left gutted from the blaze.

IN OTHER NEWS:

Paramedics were treating a woman at the front of the property.

It's unclear what started the fire, which was mostly extinguished by 10am.

People were encouraged to avoid the area.