Montana Mortgage Calculator

In Montana, Liberty County offers the lowest median monthly mortgage payment at $850, while Gallatin County stands at the highest with $5,000. This disparity in payments can influence your financial situation, affecting both your immediate budget and long-term financial health.

Using MoneyGeek's mortgage calculator in Montana allows you to estimate your monthly mortgage payment accurately and determine which loan term suits your financial situation better. By inputting your purchase details, you can also see how much interest you pay over your loan's lifetime, helping you secure a mortgage that aligns with your financial goals.

Mortgage Calculator

Simply estimate your Montana loan payments, taxes and PMI.

Updated: Sep 4, 2024

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Homeowner's insurance

PMI

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Get personalized mortgage rates from Montana.

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Key Takeaways

You can use the mortgage calculator in Montana to determine monthly mortgage payments, which vary by location, like Liberty County at $850 versus Gallatin County at $5,000 as of March 2024.

Using a mortgage calculator can help you find a monthly mortgage payment that fits your budget, adjust loan terms or down payments, and estimate your total interest over the loan's life.

The average APR for a 30-year mortgage in Montana is 6.4%, and for a 15-year mortgage, it is 5.9%.

MoneyGeek uses publicly available data from Zillow for the rates on this page. Mortgage rates shift daily, and we take a snapshot to analyze rate information for Montana. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless otherwise stated, all rates are annual percentage rates (APRs).

See the sources cited for more details about data related to median mortgage payments, home prices, down payments and local tax rates.

Interest rate data was last updated in September 2024.

SEE MORTGAGE CALCULATORS IN NEIGHBORING STATES

How to Use Our Montana Mortgage Calculator

MoneyGeek's mortgage calculator in Montana can help you calculate your monthly mortgage payments and determine your mortgage's affordability. You'll also understand your amortization schedule, providing a clear financial path ahead.

Calculate Your Monthly Mortgage Payment

Your monthly mortgage payment is influenced by several factors, including the home's sale price and your down payment. Dive into using Montana's mortgage calculator for a clear understanding of your payment breakdown.

1
Home Price
The home price directly influences your monthly mortgage payment in Montana. A lower home price in Liberty County, at a median of $145,350, means lower monthly payments than in Gallatin County, where the median is $857,280, according to the National Association of Realtors.
2
Down Payment
The size of your down payment influences your monthly mortgage payment by reducing the loan amount. Montana's median down payment is $4,891, according to ATTOM data from September 2024.
3
Annual Percentage Rate (APR)
Your Annual Percentage Rate (APR) impacts your monthly mortgage payment, with a lower APR resulting in lower payments. The current mortgage rates in Montana change over time and vary between loan types. For example, the average APR for a 15-year fixed mortgage is 5.9%, and for a 30-year fixed mortgage, it's 6.4%.
4
Loan Terms
Shorter terms, like 15 years, often have higher monthly payments but result in less interest paid over the life of the loan. Conversely, a 30-year term typically has lower monthly payments but accrues more interest over time. Choosing the right term depends on your financial situation and goals.

SAMPLE MONTHLY PAYMENT CALCULATION IN MONTANA

Using the mortgage calculator in Montana, you can see that the monthly payment for a 30-year fixed-rate mortgage on a $275,000 house after a 20% down payment is $1,376. This figure does not include additional costs like HOA fees and property taxes.

Opting for a 15-year repayment term on your home loan adjusts your monthly payment to $1,845 in Montana, which can elevate your short-term expenses. This adjustment, while impacting your monthly budget, results in a total interest savings of $163,369 over the duration of the loan.

Determine Your Mortgage's Affordability

Buying a home is one of the most substantial expenses you'll face, with mortgage payments consuming a significant part of your monthly income. Understanding your mortgage's affordability is crucial for managing your finances. MoneyGeek's mortgage calculator for affordability helps you determine this by simply inputting your monthly income and other debts, like car loans and student loans.

The calculator also shows your debt-to-income ratio, which is crucial for borrowers to understand when planning to secure a mortgage. This ratio indicates how much of your income is dedicated to debt payments. According to Experian, the average debt in Montana is $104,133, which translates to an average monthly debt of $8,678.

See Your Amortization Schedule

Mortgage amortization is the process of paying off a loan over time through regular payments. The key terms are:

Principal: The loan amount you borrow. Understanding this helps you see how much you owe.
Interest: The cost of borrowing the principal. Knowing this shows the total cost of your loan.

MoneyGeek's mortgage calculator allows you to see your amortization schedule and estimate the total interest you'll pay over the life of your loan in Montana. You can also see when your monthly payments begin to go more toward your principal vs. your interest, helping you understand your payment allocation over time.

Additional Mortgage Fees in Montana

Homebuyers in Montana need to consider additional mortgage fees that could impact your budget. For example, mortgage insurance and HOA fees can increase your monthly payment. Property taxes and homeowners insurance are other costs to keep in mind.

Homeowners Insurance

Homeowners insurance protects your property and personal belongings from damage or theft. It also provides liability coverage if someone is injured on your property. The average homeowners insurance in Montana is $3,819 per year.

Property Tax

Property tax is a levy on real estate that homeowners must pay to the local government. It funds public services like schools and infrastructure. According to the Tax Foundation, Montana's effective property tax rate is 0.74%, ranking it 34th in the nation.

HOA Fees

HOA fees are payments to homeowners associations for property management, maintenance, and community amenities. These fees are typically paid monthly or annually.

Private Mortgage Insurance

Private mortgage insurance (PMI) protects lenders if a borrower defaults on a loan. It applies to conventional mortgages when the down payment is less than 20%. Borrowers must request cancellation once they reach 20% equity, or it will only be automatically removed at 22%.

How Much Is Private Mortgage Insurance in Montana?

The average APR for a 30-year fixed loan in Montana is 6.4%. Using MoneyGeek's PMI calculator, you can see that for a $275,000 home with a 10% down payment, borrowers with a credit score between 680 and 719 pay PMI worth $117 per month if they get a 30-year fixed-rate loan. The amount becomes $115 if they opt for a 15-year loan instead.

MoneyGeek's mortgage calculator in Montana allows you to see your amortization schedule and determine when you can stop paying for PMI:

1
Calculate your monthly mortgage payment
Input the necessary information, such as the home's price, down payment and mortgage rate in Montana. If you already know some fees you need to cover, such as property tax or HOAs, include these. If not, leave them blank, but know you'll still have to pay for these. Run the calculator and get your total monthly payment.
2
Calculate for your target equity
You can request that PMI be canceled when you've accumulated at least 20% equity in your home — this will be your target equity. To calculate your target equity, multiply your home's price by 20%.
3
Determine the remaining equity required
Your down payment already contributes towards the 20% equity you need to request your PMI's cancellation. Deduct your down payment from your target equity to get the remaining amount.
4
Establish a timeline
Go to the Amortization tab of the mortgage calculator. Move the slider until the principal paid exceeds your remaining equity required — that's the year you can stop paying for PMI.

Private Mortgage Insurance Calculator

Calculate your monthly private mortgage insurance (PMI) premium based on your credit score and down payment.

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WHEN CAN YOU CANCEL YOUR PMI?

Let's say you put in an 8% down payment for a home in Montana priced at $350,000. With an average APR of 6.4% for a 30-year fixed-rate loan, your monthly mortgage payment is $2,014. You need 20% equity to cancel PMI, equivalent to $70,000.

Since your down payment was $28,000, you still need to pay $42,000 to accumulate 20% equity. Assuming that your home's value remains the same over the years and that you consistently pay your mortgage, you can request your lender to cancel your PMI by Year 10.

How to Lower Your Monthly Mortgage Payment in Montana

Your mortgage is probably the biggest expense you have each month. For a $225,000 loan in Montana at 6.4% interest, you'll pay $1,376 monthly. However, if you can reduce your APR by 0.25%, your new monthly mortgage payment becomes $1,340. That $36 difference might seem small, but over a 30-year fixed-rate mortgage, you'll save $12,892 in total interest.

This example highlights the value of finding ways to lower monthly mortgage payments. Here are some strategies to consider:

Improve your credit score

Your credit score affects your mortgage payment. In Montana, if you put in a down payment between 5% to 20% of the home's sale price, the average APR for a 30-year fixed rate mortgage is 7.1% if your credit score is above 740. However, if your credit score is under 680, the average APR becomes 8.2%. This change in APR makes your monthly mortgage payments go from $1,478 to $1,645.

Save for a bigger down payment

Putting a bigger down payment may result in lower monthly mortgage payments. For a $225,000 loan in Montana, putting 8% down makes your APR 6.9%, resulting in a monthly mortgage of $1,666. Increasing your down payment to 25% puts your APR at 6.8% and a monthly mortgage of $1,345.

Choose a longer loan term

A longer loan term affects your monthly mortgage payment. A 15-year fixed rate mortgage in Montana has an APR of 5.9%. A 20% down payment makes your monthly mortgage payment $1,845. Compare this to $1,376, which you'll have to pay each month if you change loan terms to 30 years, even if your APR increases to 6.4%.

Explore homeownership assistance programs

You can find homeowners assistance programs in Montana that may help with your mortgage costs. Institutions like the Montana Housing and the Montana Homeownership Network offer various forms of assistance to eligible homeowners.

FAQ: Mortgage Calculations in Montana

Using a mortgage calculator can raise questions for potential borrowers, especially in Montana. We've addressed commonly asked questions to help you understand your mortgage options.

How much mortgage can I afford in Montana?

The amount of mortgage you can afford in Montana depends on your debt-to-income ratio (DTI). Generally, lenders prefer a DTI ratio below 36%.

What is the average mortgage debt in Montana?

The average mortgage debt in Montana is $234,646 as of 2023, according to Experian.

How much down payment do I need to purchase a house in Montana?

The ideal down payment is 20%, but it varies. Conventional loans typically require 5% to 20%, while FHA loans require 3.5%. VA loans and USDA loans often require no down payment.

Do you really need private mortgage insurance in Montana?

Private mortgage insurance (PMI) in Montana costs around $115 for a 15-year loan and $117 for a 30-year loan. It is generally required if your down payment is less than 20%.

What's the effective tax rate in Montana?

Montana has an effective property tax rate of 0.74%, ranking 34th nationally.

What is the median home price in Montana?

The median home price in Montana varies by county. Liberty County has the lowest median home price at $145,350, while Gallatin County has the highest at $857,280.

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