Updated: January 14, 2025
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Tappable equity is the portion of your home’s value you can borrow. A home equity loan (HEL) lets you access this equity to fund home improvements or consolidate debt.
Montana's home equity loan rates are 7.6% APR for 10-year terms, slightly below the national average of 7.7%, and 8% APR for 15-year terms, slightly above the national average of 7.9%. Learn more about current rates in Montana, including city-specific rates, top lenders and tips for securing the best deal.
Higher loan-to-value (LTV) ratios usually result in higher rates. However, Montana's average APR for a 15-year home equity loan is 8.1% at 80% LTV, slightly higher than the 7.9% rate at 90% LTV.
HEL rates vary by city in Montana. For 15-year loans, Fairfield has an average APR of 6.8%, while Missoula's is 8.8%.
Lenders offer different rates for the same loan types. 1st Liberty Federal Credit Union's average APR is 5.7%, while Horizon Credit Union's is 10.5%.
MoneyGeek examined 15 different banks and credit unions in Montana using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity loan rates.
This data is accurate as of January 2025.
The current average APR for a 15-year home equity loan in Montana is 8%, but several factors can influence lenders' rates. A higher credit score typically means a lower APR, while larger loan amounts may result in higher rates. Repayment terms also affect the APR. Use the table below to compare average APRs for home equity loans in Montana by loan term.
| 10Year | 7.6% |
| 15Year | 8.0% |
| 5Year | 7.1% |
Home equity loan rates change daily, so keeping track can help you save on interest. Using a lower-rate home equity loan to consolidate high-interest debt can reduce your overall payments.
For example, a 15-year home equity loan with an 8% APR has a monthly payment of $478 and a total interest of $36,009. A 10-year loan at 7.6% APR has a monthly payment of $594 and a total interest of $21,221.
Home equity loans (HELs) and home equity lines of credit (HELOCs) allow homeowners to access their home's equity. HELOC rates in Montana are variable, averaging 8.3%, while home equity loan rates average 7.6%.
HELs have fixed rates, keeping monthly payments steady and making budgeting easier. HELOCs have variable rates that may start lower but can rise, increasing monthly costs.
The rate you qualify for depends on your loan-to-value (LTV) ratio, which compares your mortgage balance to your home's appraised value. To calculate your LTV ratio, divide your current mortgage balance by your home's appraised value and multiply by 100. For instance, if your home is worth $300,000 and you owe $240,000, your LTV ratio is 80%.
A higher LTV ratio typically presents more risk to lenders, resulting in higher rates. However, Montana's average APR for a 15-year equity loan with an 80% LTV is 8.1%, while it's 7.9% for a 90% LTV. Use the table below to compare average rates based on LTV ratios.
| 8.1% | 7.9% |
Average APRs for home equity loans vary by city in Montana. Cities with higher living costs often have slightly higher rates due to increased lender expenses. Property taxes and local fees can also affect borrowing costs.
For example, Cut Bank's average APR is 5.7%, while Missoula's is 8.8%. The table below shows average home equity loan rates across Montana cities by loan term.
| 10Year | 7.7% |
| 15Year | 8.1% |
| 5Year | 7.2% |
Home equity loan rates in Montana vary significantly between lenders, influenced by lender policies and market strategies. For instance, 1st Liberty Federal Credit Union offers the lowest average APR at 5.7%, while Horizon Credit Union has the highest at 10.5%.
Compare rates and terms from different lenders to find the best deal. Use the interactive table below to discover the most competitive lenders in your city.
| Altana Federal Credit Union | 6.5% |
| Valley Financial Credit Union | 7.5% |
| U.S. Bank National Association | 7.7% |
| Mountain America Federal Credit Union | 7.7% |
| Black Hills Federal Credit Union | 9.4% |
| First Interstate Bank | |
Including credit unions in your lender options can help you secure competitive home equity loan rates. While commercial banks in Montana offer an average APR of 7.7%, credit unions provide a slightly lower rate of 7.4%. However, credit unions often have stricter membership requirements.
Getting the best home equity interest rates can reduce your monthly payments and overall costs, freeing up funds for other financial goals. To secure the best rates, consider these strategies:
Lenders may offer different APRs for the same loan amount and credit profile. Richland Federal Credit Union has an average APR of 6.3% in Montana, while Vocal Credit Union offers 8%. Compare different home equity loan providers to find better rates.
Having more equity in your home can result in more competitive rates from lenders. Montana homeowners can increase their equity by insulation upgrades or creating home offices.
Increasing your credit score can lead to more competitive home equity loan rates. Pay bills on time and reduce credit card debt to improve your credit score. The average credit score in Montana is 720, according to Experian.
A lower debt-to-income (DTI) ratio — the percentage of your monthly income used to pay debts — can lead to better rates, as lenders see you as a less risky borrower.
Provide your income and recurring payments to calculate your DTI.
Enter all applicable payments to ensure accurate results.
MoneyGeek addresses common homeowner questions about home equity loan rates, providing precise and reliable information for Montana residents.
As of January 2025, the average APRs for home equity loans in Montana are 7.1% for five-year, 7.6% for 10-year and 8% for 15-year terms. Your rate may vary based on your credit score and other factors.
To calculate your home equity, subtract your outstanding mortgage balance from your property's current market value. Understand home equity requirements to determine your loan eligibility.
Yes, rates can vary. For example, Cut Bank's average APR is 5.7%, while Missoula's is 8.8% as of January 2025.
Home equity loan interest may be tax-deductible if the funds are used for home improvements.
Drawbacks include the risk of foreclosure if you default, potential fees and an increase in your debt load.
The process typically takes two to six weeks, depending on the lender and your preparedness with necessary documentation.
Assess your eligibility for a home equity loan by checking your credit score requirements and gathering financial documents.
Funds can be used for home improvements, debt consolidation or other major expenses. Based on the lender's policies, restrictions may apply.
While you can apply for a home equity loan on your primary residence, some lenders may offer loans on secondary properties. Consider a cash-out refinance for additional flexibility.
Besides a home equity loan, consider a HELOC or a cash-out refinance. Each type of loan offers different terms and benefits.
A HELOC offers a revolving credit line with a draw period and may include an annual fee, while a home equity loan provides a lump sum with fixed interest rates.
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.
