HELOC rates in Montana have risen from 4.5% in 2020 to 8.6% in 2024. If this trend persists, homeowners may encounter higher costs, making it wise to consider locking in a rate now.
HELOC
Best HELOC Rates in Montana
Updated: November 19, 2024
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Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Montana with an 80% LTV is 8.5%, compared with 8.4% for a 90% LTV.
HELOC rates vary by city in Montana. Lewistown has an average APR of 7.5%, whereas Absarokee's is 10.3%.
Different lenders offer varying rates for the same loan types. Bank of the Rockies' average APR is 7.5%, whereas First Interstate Bank's is 10.3%.
Current HELOC Rates in Montana
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HELOC Rates in Montana by LTV Ratio
HELOC rates in Montana vary depending on your loan-to-value (LTV) ratio and line limit. A lower LTV ratio means more equity in your home, making lenders view you as less risky. For instance, an 80% LTV is less risky than a 90% LTV, reducing the chances of default on your HELOC.
The following table lets you filter between different loan amounts, offering a clearer view of what you may qualify for:
Data filtered by:Results filtered by:
Line Limit:
Line Limit:$100,000
HELOC Rates in Montana by City
HELOC rates in Montana vary by city due to differences in local housing markets and lender competition. For instance, cities with robust real estate markets might see lower rates.
Use the table below to filter by your city and see average APRs for $50k and $100k HELOCs.
Data filtered by:Results filtered by:
City:
City:Billings
| $100,000 | 8.6% |
| $50,000 | 8.6% |
HELOC Rates in Montana by Lender
HELOC interest rates in Montana vary among lenders based on pricing strategies and risk assessments. Comparing rates can help you find the best deal. The table below highlights the five lenders in Montana offering the lowest average APRs, aiding your decision-making process.
| Bank of the Rockies | 7.5% |
| Altana Federal Credit Union | 7.8% |
| Merchants Bank | 8.0% |
| Independence Bank | 8.0% |
| Montana Federal Credit Union | 8.0% |
HELOC rates today can differ significantly among lenders in the same city. Use the table below to filter by city and compare APRs, helping you find the most competitive rate in your area.
Data filtered by:Results filtered by:
City:
City:Billings
| Altana Federal Credit Union | Credit Union | 7.8% |
| Valley Financial Credit Union | Credit Union | 8.0% |
| Billings Federal Credit Union | Credit Union | 8.3% |
| Mountain America Federal Credit Union | Credit Union | 8.5% |
| HTLF Bank | Commercial Bank | 8.9% |
| Black Hills Federal Credit Union | Credit Union | 9.0% |
| U.S. Bank National Association | Commercial Bank | 9.2% |
| First Interstate Bank | Commercial Bank | 10.3% |
COMPARING HELOC RATES IN MONTANA: BANKS VS. CREDIT UNIONS
HELOC rates in Montana vary between banks and credit unions, with banks generally offering higher rates. For instance, the best HELOC rate in Montana for commercial banks is currently 8.5%, while credit unions offer an average APR of 8.4%. Credit unions are not-for-profit institutions, which often allows them to provide slightly lower rates compared to banks.
When deciding between the two, consider more than just rates. Banks might offer more convenience, while credit unions often provide better customer service and lower fees. Be sure to check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
Ask the experts:
What are the primary factors that influence HELOC rates, and how can homeowners ensure they get the best rate?
Credit & Mortgage Expert
There are many factors that influence HELOC rates, but the most critical are the following:
Credit score is a crucial factor in determining your interest rate for a HELOC. The higher your credit score, the lower rate you will qualify for. Shoot for a 760 credit score or higher.
Debt-to-income is a vital factor. If the lender doesn’t think you have the ability to repay the debt, you will be denied. Focus on paying off as many credit cards or loans as possible before applying for a HELOC.
Loan-to-value — how much money you borrow based on how much your home is worth plays a large role in interest rate. The more you take out, the higher the risk is for the lender, which translates to a higher interest rate for your loan.
HELOC Payment Calculator
HELOCs have become a popular tool for homeowners across the U.S. looking to tap into their home's equity. Use our Montana HELOC payment calculator to determine your monthly payments based on amount draws, loan terms, and APR.
It also provides an amortization schedule, detailing the division of payments between principal and interest over time. Understanding these aspects can help you manage your HELOC more effectively and plan your finances.
Montana HELOC Payoff Calculator
This HELOC payment calculator assumes that you take out one lump sum at the start of your interest-only period. Your actual payoff schedule will vary depending on your interest rate and market conditions.
Credit Line Information
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Repayment Period Payment
$0
- Graph view
- Table view
- Amortization
Credit Payoff Schedule for Home Equity Line
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Ending balance
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How to Get the Best HELOC Rates in Montana
Finding the best HELOC rates in Montana can save you thousands over the loan's duration. For example, securing a rate that's 1% lower could reduce your monthly payment significantly. Consider these five strategies to find the most competitive rates:
Maintain a strong credit score
The average credit score in Montana is 732. Improving it can help you secure better rates from lenders.
Compare offers from multiple lenders
Shopping around can help you find competitive rates and use offers to negotiate better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income (DTI) ratios show financial stability. Pay off credit card debt to improve your ratio.
Increase your home equity
More equity means less risk for lenders. Consider paying down your mortgage or making home improvements.
Review closing costs and rate caps
Closing costs can affect expenses. Knowing rate caps helps manage HELOC adjustments.
HELOC Loan Rates vs. Home Equity Loan Rates in Montana
HELOC interest rates in Montana average 8.5%, while home equity loan rates are lower, averaging 7.6%. This difference is due to HELOCs having variable rates that adjust with market conditions, while home equity loans offer fixed rates.
- HELOCs are revolving credit lines with variable rates that can rise in rising interest rate environments, potentially increasing costs for homeowners over time.
- Home equity loans provide a lump sum with a fixed rate, making them suitable for those who prefer stable payments.
When deciding between these options, consider your need for flexibility versus predictability. Assess how changes in interest rates might impact your finances and whether you prefer the security of fixed payments or the flexibility of accessing funds as needed.
CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE
Cash-out refinance is an HELOC alternative, replacing your existing primary mortgage with a larger loan for cash access. Unlike HELOCs or home equity loans, it creates a new primary mortgage.
For example, with a Federal Housing Administration (FHA) mortgage valued at $300,000 and a $150,000 balance, an FHA cash-out refinance for $200,000 provides $50,000 cash, with payments based on $200,000.
FAQ: Best HELOC Rates in Montana
What are the current HELOC rates in Montana and how do they compare to national rates?
Montana's HELOC rates average 8.5%, slightly above the national average of 8.4%.
What fees are commonly associated with HELOCs in Montana?
Common fees include application, appraisal, annual, and early closure fees, but specifics vary by lender.
How do HELOC rates in Montana compare to home equity loan rates?
Montana's HELOC rates average 8.5%, while home equity loan rates are lower at 7.6%, particularly for those with bad credit.
How do HELOC Rates in Montana vary between banks and credit unions?
Commercial banks offer HELOC rates averaging 8.5%, while credit unions offer lower rates at 8.4%.
What's the best HELOC rate in Billings? How does it compare to the current HELOC rate in Montana?
Billings's rates average 8.6%, which is slightly higher than the Montana average of 8.5%.
MoneyGeek examined 26 different banks and credit unions in Montana using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity line of credit rates.
This data is accurate as of November 15, 2024.
26Lenders Analyzed
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.