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Montana Mortgage and Refinance Rates

On Thursday, June 01, 2023, the national average 30-year fixed mortgage APR is 7.15%. The national average 30-year fixed refinance APR is 7.21%, according to Bankrate's latest survey of the nation's largest mortgage lenders.

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Montana mortgage overview

As of Thursday, June 1, 2023, current mortgage interest rates in Montana are 7.22% for a 30-year fixed mortgage and 6.52% for a 15-year fixed mortgage.


The state of Montana has both first-time homebuyer programs and programs for current homeowners. State funding helps homebuyers with financial incentives such as down payment and closing costs assistance or a competitively lower interest rate.

First-time homebuyer programs in Montana

Montana Housing administers the state’s homeownership and rental programs, which include first-time homebuyer programs. Montana Housing also works along with NeighborWorks Montana, a nonprofit organization, to help make homeownership more affordable. The state considers a first-time homebuyer as a borrower who has not purchased a home in the past three years.

Regular Bond Program

Montana Housing’s Regular Bond Program provides 30-year, low-interest mortgages to eligible first-time homebuyers, and allows buyers to purchase a single-family home, condo or and manufactured home in the state.

The interest rates vary and are based on credit history, and borrowers must meet location-based household income and purchase price limits.

Applicants must also qualify for an FHA, VA, USDA or Section 184 first mortgage to qualify, and may be required to take a homebuyer education course, unless the borrower has a credit score of 680 or higher, a front-end debt ratio of 31 percent or less and a back-end debt ratio of 41 percent or less. All three criteria must be met to waive the homebuyer education requirement.

Down Payment Assistance Programs

Through Montana Housing’s Down Payment Assistance programs, first-time homebuyers who need help coming up with the down payment and closing costs can receive funds from the state in conjunction with a Regular Bond Program loan.

There are two down payment assistance programs available:

  • Bond Advantage DPA: A 15-year mortgage for up to 5 percent of the home’s sale price, up to $10,000, with low monthly payments; requires a $1,000 investment from the borrower, a minimum credit score of 620 and completion of a homebuyer education course.
  • MBOH Plus 0% Deferred DPA: A zero-percent interest mortgage for up to 5 percent of the home’s sale price, up to $10,000, with no monthly payments, due when the first mortgage is paid off or the home is refinanced or sold; requires a $1,000 investment from the borrower, a minimum credit score of 620, a maximum debt-to-income ratio of 45 percent and completion of a homebuyer education course; an income limit of $55,000 also applies.

80% Combined Program

Under the 80% Combined Program, homebuyers who are eligible for Montana Housing financing can apply for an alternative to an FHA-insured loan to avoid paying mortgage insurance. The homeowner will have two mortgages: an 80 percent, 30-year first mortgage, and a 20 percent second mortgage.

Montana Veterans’ Home Loan Program

The Montana Veterans’ Home Loan Program helps residents who are serving or have already served in the military or the Montana National Guard purchase their first home. The program offers a mortgage with an interest rate 1percent lower than the current market rate. There are no income or purchase price limits.

Mortgage Credit Certificate

Montana’s Mortgage Credit Certificate (MCC) is a federal tax credit that lowers the federal income tax the borrower pays. The credit applies to 20 percent of the mortgage interest, up to a maximum of $2,000, each year. Note: Borrowers with a Montana Housing loan are not eligible for the credit.

Montana mortgage refinancing

Montana Housing does not provide a mortgage refinancing program. Refinancing to a lower interest rate can help you save thousands of dollars over the life of your mortgage, and make the payments more affordable. If you’re considering a refinance, shop around for lenders and compare the terms of each loan offer to get the best possible refinance rate.

Montana mortgage resources