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 (December 2024)
Updated: December 21, 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 8.4%, compared with 8.3% 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 commercial banks generally offering higher rates. For example, the best HELOC rate at commercial banks in Montana averages 8.5%, while credit unions offer a slightly lower average APR of 8.3%. As not-for-profit institutions, credit unions often provide more competitive rates.
When choosing between the two, consider more than just rates. Banks may offer more convenience and a broader range of services, while credit unions often excel in customer service and lower fees. Also, check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
Ask the experts:
Are there any strategies homeowners can use to lock in a favorable HELOC rate in a rising interest rate environment, and how does a rate lock typically work with HELOCs?
Credit & Mortgage Expert
HELOCS often have variable interest rates, meaning they go up or down with the Federal Funds rate. So if you are worried about rates rising, you should look into a home equity loan or refinancing your home. That way you have a fixed rate that will not change over time.
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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- Amortization
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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 8.4%, which is higher than the 7.6% average for home equity loans. This difference arises from the variable rate structure of HELOCs compared to the fixed rates of home equity loans.
- HELOCs are revolving credit lines with variable rates that fluctuate with market conditions. In rising interest rate environments, HELOC rates can increase, impacting long-term homeowner finances.
- Home equity loans offer a lump sum at a fixed rate, providing stability throughout the loan term. They are preferable for those seeking certainty in their financial planning.
When deciding between these options, consider whether you prioritize the flexibility of HELOCs or the predictability of home equity loans. Evaluate your financial goals and the potential impact on your home's equity to make an informed choice.
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 8.4%, slightly higher than the national average of 8.3%.
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 8.4%, while home equity loan rates are lower at 7.6%, which might be preferable 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 8.5%, while credit unions offer lower rates at 8.3%.
What's the best HELOC rate in Billings? How does it compare to the current HELOC rate in Montana?
Billings's rates are slightly higher, averaging 8.5%, compared to Montana's average of 8.4%.
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 December 13, 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.