Montana Mortgage and Refinance Rates

Current mortgage rates in Montana

As of Monday, June 23, 2025, current mortgage interest rates in Montana are 6.55% for a 30-year fixed mortgage and 5.70% for a 15-year fixed mortgage.

Mortgage rates began the year at over 7 percent despite the Federal Reserve cutting rates at three consecutive meetings last year. Following a brief dip in early April, rates shot back up near that 7 percent mark. While mortgage rates are difficult to predict and change frequently, many experts believe rates will hover in the mid-6 percent range for much of 2025, both nationally and in Montana.

Refinance rates in Montana

Refinance rates are also now much higher than the rock-bottom levels of the past few years. Still, you might consider a cash-out refinance on your Montana home to pay for renovations or other expenses: As home prices have risen, so have homeowners’ equity. The average mortgage-holder gained $5,700 in equity year over year in the third quarter of 2024, according to Cotality. If you want to use your equity but don’t want to refi, a home equity line of credit (HELOC) is another option.

National mortgage rates by loan type

Montana mortgage rate housing market statistics and trends

Like much of the U.S., Montana’s housing market has seen home prices climb in recent years. In the state, the median home sales price increased over 8 percent year over year as of February 2025, according to ATTOM. Rising home prices paired with a high mortgage rate environment make affordability a challenge for many Montana residents. While mortgage rates are difficult to predict, the current consensus is for rates to remain well above historical lows for the foreseeable future, including in Montana.

If you're thinking about making Montana home, here are more statistics about housing in the state:

• Most popular cities: Billings, Missoula, Bozeman, Great Falls, Helena
• Most affordable counties, Feb. 2025: Musselshell, Prairie, Roosevelt, Treasure and Wheatland
• Median home sales price, Feb. 2025: $442,330
• Median down payment, Feb. 2025: $30,598
• Homeownership rate, Q4 2024: 72.3% 

Sources: ATTOM, U.S. Census Bureau

Mortgage options in Montana

Like elsewhere in the U.S., there’s a variety of mortgage options in Montana to suit a range of needs and financial circumstances. Here are some of the most common:

• Montana conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio no more than 45 percent. With a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
• Montana FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580.
• Montana VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent for the first use.
• Montana USDA loans: If you’re buying a rural property in Montana, you might be eligible for a mortgage guaranteed by the U.S. Department of Agriculture (USDA). These loans don’t require a down payment, but you’ll need to purchase in a designated rural area and meet the area’s income limits.

First-time homebuyer programs in Montana

Montana Housing, the state’s housing finance agency, administers 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 defines a first-time homebuyer as someone who hasn’t owned a home in the past three years.

• Regular Bond Program: This program provides 30-year, low-interest mortgages to eligible first-time homebuyers who meet income, purchase price and loan program requirements (FHA, VA, USDA, Section 184), with possible homebuyer education required.
• Bond Advantage DPA: One of Montana Housing’s Down Payment Assistance programs, this option offers a 15-year loan of up to 5 percent of the purchase price (max $15,000) with low monthly payments. It requires a $1,000 investment, a minimum 620 credit score and completing a homebuyer education course.
• MBOH Plus 0% Deferred DPA: This program provides a 0 percent interest, no-payment loan up to 5 percent of the purchase price (max $15,000). It is due upon sale of the home, refinance or payoff of the loan. In addition, it requires a $1,000 investment, a minimum 620 credit score and completing a homebuyer education course.
• 80% Combined Program: This option helps eligible buyers avoid mortgage insurance with an 80 percent first mortgage and 20 percent second mortgage. To qualify, you must have a minimum 640 credit score and a maximum 45 percent DTI ratio, and meet income limits.

How to find the best mortgage rate in Montana

Additional Montana mortgage resources

• Montana loan limits by county: Learn the conforming and FHA loan limits for your city or county.
• Montana mortgage lenders: Explore home loan lenders in your state.
• Homeowners insurance in Montana: Compare policies from a variety of providers.

Meet our Bankrate experts

Written by: Andrew Dehan, Writer, Home Lending

I’ve covered mortgages, real estate and personal finance since 2020. At Bankrate, I’m focused on all of the factors that affect mortgage rates and home equity. I enjoy distilling data and expert advice into takeaways borrowers can use. Prior to Bankrate, I wrote and edited for Rocket Mortgage/Quicken Loans. My work has been published by Business Insider, Forbes Advisor, SmartAsset, Crain’s Business and more.

Read more from Andrew Dehan

Edited by: Laurie Richards, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English.

Read more from Laurie Richards