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 (January 2025)
Updated: January 18, 2025
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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 8.3%, compared with 8.2% for a 90% LTV.
HELOC rates vary by city in Montana. Baker has an average APR of 7.8%, 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:
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Line Limit:$100,000
| 8.5% | 8.4% |
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.
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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.
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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. Currently, commercial banks in Montana have an average APR of 8.4%, while credit unions offer a slightly lower average APR of 8.2%. Credit unions, being not-for-profit institutions, often provide these lower rates as part of their member-focused approach.
When deciding between the two, consider more than just rates. Banks may offer greater convenience and accessibility, while credit unions often provide better customer service and lower fees. It's also important to check membership requirements for credit unions and potential hidden fees or rate adjustment clauses with both lenders.
Ask the experts:
How do HELOC rates compare to other borrowing options like personal loans or home equity loans, and when should a homeowner choose a HELOC over these alternatives?
Credit & Mortgage Expert
Typically, a HELOC will have a lower interest rate than a personal loan from a bank or credit union. However, HELOCs often have a variable rate, so they can go up or down depending on the current Federal Funds rate. Home equity loans are a fixed rate, so when the Fed increases rates or they remain the same, that is a good time to get a home equity loan.
Personal loans are a solid option despite their higher rates because they are unsecured, meaning there is no collateral (like your home). If you come on hard times and can’t repay a personal loan, you are not at risk of losing your home like you are with a HELOC or home equity 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.
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Repayment Period Payment
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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 8.3%, while the best home equity loan rates are 7.6%. The difference stems from their rate structures, with HELOCs having variable rates that can rise over time.
- HELOCs are flexible, revolving credit lines with variable interest rates. In rising interest rate environments, HELOC rates can increase, affecting homeowners' finances over the long term.
- Home equity loans provide a lump sum at a fixed interest rate, remaining consistent throughout the loan term. They are preferable for situations requiring financial certainty.
When deciding between these options, consider your financial goals and risk tolerance. If you value flexibility and can manage potential rate increases, a HELOC might suit you. If predictability is key, a home equity loan could be the better choice. Both allow you to borrow against your home's equity, so align your choice with your financial strategy.
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?
The average HELOC rate in Montana is 8.3%, slightly higher than the national average of 8.2%.
What fees are commonly associated with HELOCs in Montana?
Common fees include application fees, appraisal fees, annual fees, 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 8.3%, while home equity loan rates are lower at 7.6%, especially beneficial for those with bad credit.
How do HELOC Rates in Montana vary between banks and credit unions?
Commercial banks in Montana offer HELOC rates averaging 8.4%, while credit unions offer lower rates at 8.2%.
What's the best HELOC rate in Billings? How does it compare to the current HELOC rate in Montana?
Billings's rates average 8.3%, aligning with the overall HELOC rate in Montana.
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 January 10, 2025.
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.