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Compare Current Mortgage Rates in Montana

The higher your interest rate, the more your mortgage payment will be. Find out how you can get a lower rate in Montana.

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    Your mortgage rate affects how much you'll pay each month for your mortgage loan. The higher your interest rate, the more your mortgage payment will be, and the lower your interest rate, the less your payment will be.

    For example, on a 30-year fixed-rate $425,000 loan with an interest rate of 6.25% you would pay about $2,617 each month. With an interest rate of 8.25%, you’d pay about $3,193 each month. In this case, those two percentage points equal $576 a month.


    How are mortgage rates determined in Montana?

    Lenders in Montana look at several sources when setting interest rates for customers:

    • The Federal Reserve: The Federal Reserve sets the federal funds rate. This is the rate lenders charge each other. If the federal funds rate is high, mortgage rates will probably reflect that. If the federal funds rate is low, mortgage rates should be lower.
    • Economic conditions: In a robust economy, people are more likely to have money to buy a house. This tends to lead to more demand for home loans. Increased demand usually means a rise in interest rates. In a slow economy with fewer people buying homes, interest rates should go down.
    • Inflation: Inflation happens when there is more money in circulation than there are products to buy. With inflation, consumers need to spend more to buy goods and services. 

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    Does Montana have a first-time homebuyer program?

    Yes. Montana has several first-time homebuyer programs.

    Montana Housing offers help to first-time homebuyers through lower interest rate mortgages, down payment and closing cost assistance, and various loan programs.

    • Regular bond program: This is a 30-year, low-interest mortgage loan for low-income borrowers. To get this loan, you must not exceed posted income limits and qualify for an FHA, VA, USDA, or HUD-184 loan (for Native Americans). Single-family homes, condos, and manufactured homes are eligible.
    • 80% combined program: Borrowers who meet income and housing cost limits could be eligible for this loan, which was made possible by a partnership between Montana Housing and nonprofit organizations. Borrowers get a first loan for 80% of the home's purchase price, which eliminates any mortgage insurance, and a second loan for 20% of the price. You need a 640 credit score and must complete a homebuyer education course to qualify.
    • Montana Veterans' Home Loan program: This mortgage loan offers an interest rate of 1% lower than the market rate. It's for Montana residents who have served in the military through the armed services or Montana National Guard. There are no income or purchase price limits.
    • Down payment assistance: If you don't have enough money saved for a down payment or closing costs, you could combine a second loan with one of the mortgage loan programs offered through Montana Housing.
    • Special programs: You could get a reduced-rate mortgage through a special program if you qualify for down payment assistance or help from a nonprofit organization. You typically need to be at or below 80% of an area’s median income to qualify. Some examples of special programs are Habitat for Humanity, Community Land Trusts, and NeighborWorks.
    • Mortgage Credit Certificate (MCC): This is a tax credit of up to $2,000 for first-time homebuyers. Montana Housing loans are not eligible.
    • Mortgage Credit Certificate Re-issuance: If you refinance your mortgage loan and you have an MCC, you might get a re-issuance of the tax credit.

    There are also national first-time homebuyer programs:

    • Habitat for Humanity: This program helps build houses for families in need around the world. Homebuyers, along with volunteers, help build their own home that has an affordable mortgage.
    • Freddie Mac Home Possible® mortgage: This mortgage is for low-income borrowers. The down payment requirement is 3% and the sources of funds can be flexible. For example, co-borrowers don’t need to live with you if you’re buying a one-unit residence.
    • Homeowner vouchers: This is for low-income buyers already in the Housing Choice Voucher (HCV) program. You could use your voucher to buy a home and then receive monthly assistance for home expenses.
    • Government-backed home loans: You can get help buying a home through the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), and the United States Department of Agriculture (USDA). 


    National mortgage rates by loan term

    Mortgage rates drop or rise daily, reacting to changing economic conditions, central bank policy decisions, and investor sentiment. The table below shows recent trends in mortgage rates.

    ProductInterest rateAPR

    Last updated on Jun 23, 2024. These rates are based on the assumptions shown here. Actual rates may vary.

    How do I get the best mortgage rates in Montana?

    You can’t control all the factors lenders use to determine the interest rate on a loan, such as the Federal Reserve, economic conditions, and inflation. But there are several factors you can control to get a better rate:

    • Improve your credit score: Your credit score plays a large role in the interest rate you’ll get. The higher your score, the lower your interest rate should be, and vice versa. FICO credit scores of 800 to 850 are exceptional, 740 to 799 are very good, 670 to 739 are good, 580 to 669 are fair, and 579 and below are poor. You can get a copy of your credit report by visiting That will help you determine what you might need to do to improve your credit score so that it’s as high as possible before you apply for a mortgage.
    • Down payment: A larger down payment usually means you get a lower interest rate. The more money you have invested in the home, the less risky you appear to lenders. You often need to put down at least 20% to get the lower rate.
    • Compare lenders: It’s a good idea to contact several lenders and ask for a loan estimate. You’ll be asked to give some basic information including your name, income, Social Security number, address of the home you’re interested in buying, the home’s price, and how much you want to borrow. Your credit score might go down a few points from the initial inquiry, but as long as you get all your loan estimates within 45 days, your credit score will not be affected again.
    • Get a pre-approval letter: Once you’ve picked a lender and are ready to buy within 30 to 60 days, you can apply for a pre-approval letter. Your lender will tell you which documents it will need. Then, you or your real estate agent can show this letter to home sellers to show you’re a serious homebuyer. The pre-approval letter is not the loan. You’ll still need to apply for that once you’re under contract.

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    What type of mortgage can I get in Montana?

    Montana residents have a variety of mortgage types available to them.


    • Description: Any mortgage loan that is not insured by the government. The loan amount must be less than $766,550 (as high as $1,149,825 in high-cost areas).
    • Qualifications: Minimum down payment of 3%, minimum credit score of 620, DTI below 43%.


    • Description: Loan amount higher than $766,550, available only in certain counties.
    • Qualifications: Credit score of 700 and up, DTI below 43%, 20% or more down payment often required.


    • Description: Administered by the Federal Housing Administration. Provides mortgage insurance on loans. FHA-approved lenders make the loans.
    • Qualifications: Down payment of 3.5%, DTI of less than 45%, typically a FICO score of 580 or more to qualify for 3.5% down.


    • Description: Home loan program for service members, veterans, and family members. No down payment is required.
    • Qualifications: You need a Certificate of Eligibility (COE) from the VA.


    • Description: Helps people buy a home in rural areas. No down payment is required.
    • Qualifications: Income must not exceed 115% of median income, must live in the residence, home must be in an eligible rural area.


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