Updated: January 8, 2025
Advertising & Editorial Disclosure
Montana's current mortgage refinance rates are 5.96% for a 15-year fixed loan and 6.85% for a 30-year fixed loan. Both are lower than the national averages of 6.12% and 7.08%, respectively.
Our comprehensive guide on refinancing a mortgage in Montana covers today's rates, trends and tips on timing. Explore how credit scores and loan types affect rates, and gain insights on when and how to refinance effectively.
MoneyGeek used Zillow data for the rates on this page. Because mortgage rates shift daily, we use 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 noted otherwise, featured rates are annual percentage rates (APRs).
This data was last updated in December 2024.
The current 30-year refinance rate in Montana is 6.85%. The state's average mortgage debt was $234,646 as of September 2023, according to Experian.
If your existing mortgage rate exceeds 6.85%, refinancing your mortgage could lower your monthly payments and the total interest over the life of your loan. Here are the current refinance rates in Montana to help you explore your options.
| 15-Year Fixed | 5.84% | 5.96% |
| 30-Year Fixed | 6.78% | 6.85% |
In December 2024, Montana's 15-year refinance rate dropped to 5.96% from 6.19%, while its 30-year refinance rate rose to 6.85% from 6.7% the previous month.
Data from 2024
Interest rates can rise due to the Federal Reserve's monetary policy, inflation and economic conditions. These factors also shape refinance rate trends in Montana, so staying informed helps you understand the fluctuations in financial markets.
Refinancing your mortgage in Montana can reduce monthly payments or interest rates. Understanding the steps will help you make informed decisions. Here's how to make refinancing work for you.
Credit scores influence the rates you qualify for; a higher score can lead to better refinancing terms. If your score is below Montana's average of 732, consider improving it by paying off debts or disputing errors.
Compare your current mortgage terms with Montana's 15-year fixed rate of 5.96% and 30-year fixed rate of 6.85%. Refinancing makes sense if these rates are lower and you plan to stay in your home long-term.
Gathering documents like tax returns, pay stubs and bank statements is crucial for refinancing your original mortgage. Having these ready can streamline the process and prevent delays.
Shopping around for lenders allows you to find the best rates, terms and customer service. Comparing offers can help you save money and ensure you select the right lender for your financial situation.
Be aware of closing costs such as appraisal fees and title insurance. Montana's average is $4,279.28, according to the National Association of Realtors.
Submit your application to the chosen lender. Ensure all documents are accurate to avoid delays. Consider using an online portal to track your application status easily and efficiently.
Secure your rate with a mortgage rate lock to protect against market fluctuations. Consult your lender to choose the best time to lock in your rate.
Finalize your loan by signing the necessary paperwork. Review all documents carefully before closing. Scheduling your closing early in the day can provide time to address any last-minute issues.
Begin payments on your new loan as scheduled. Set up automatic payments to avoid late fees and ensure timely payments, which can positively impact your credit score.
Regularly reviewing your mortgage terms and market rates can help you spot refinancing opportunities. Staying informed allows you to determine if refinancing again would benefit you.
In Montana, how soon you can refinance a mortgage depends on your loan type. You can usually refinance for conventional loans immediately, but a cash-out refinance typically requires a six-month seasoning period. USDA loans generally require a 12-month waiting period before refinancing.
The average refinance rate in October was 6.06%, lower than in previous months, which is a good example of when to refinance. However, refinancing comes with additional closing costs that can take years to recover. While you could refinance a mortgage within a year, it's usually not worth it unless there's a drastic interest rate reduction.
Refinancing your mortgage can lower your payments with reduced interest rates. Yet, closing costs could offset savings. Knowing when to refinance a mortgage in Montana ensures financial gain. Explore the following scenarios where refinancing could be advantageous.
Refinancing when interest rates are lower can reduce monthly payments and overall interest costs. Visiting local banks and credit unions to negotiate rates can help secure the best deal.
Refinancing when your property's value rises can increase home equity. Enhancing curb appeal or upgrading interiors can boost value. With Montana's average home value at $470,084, this strategy can unlock better loan terms.
A higher credit score can lead to lower interest rates when refinancing. Paying bills on time and reducing debt can improve your score.
Refinancing to a shorter loan term can save on interest and help pay off your mortgage faster. This strategy reduces the total interest over the life of the loan and builds equity more quickly.
Switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage provides financial stability. A fixed rate ensures consistent payments and protects against future rate increases.
Use MoneyGeek's free mortgage refinance calculator to determine whether refinancing is beneficial for your situation.
Make sure refinancing your existing home loan will save you money.
Total Savings:
By refinancing, you’ll pay $0
Your credit score affects the rates you qualify for. Montana's current average refinance rate for a 30-year fixed-rate loan with a loan-to-value ratio (LTV) of 80% or lower is 6.96% for credit scores between 680 and 740, compared to 6.85% for scores above 740. The table below shows the average APRs for different credit scores and LTV ratios.
| 5.97% | 6.16% |
Loan type also affects the rates you qualify for. Montana's current average refinance rates are 6.85% for a 30-year fixed-rate loan and 6.95% for a 30-year fixed-rate jumbo loan. The table below shows the average APRs for various loan types.
| 5.48% | 5.67% |
Understanding refinance rates in Montana can be tricky due to fluctuating rates and economic changes. To help you, we answer common questions about refinancing.
Refinancing may be a smart move if you can secure a lower interest rate or reduce your monthly payments. However, consider the costs involved and whether extending your loan term aligns with your financial goals.
To get the best mortgage refinance rate, improve your credit score and consider paying down your mortgage to increase your equity.
The pros of refinancing include potentially lower interest rates and reduced monthly payments. The cons involve closing costs and the possibility of extending your loan term, which might increase the total interest over time.
Refinancing a mortgage typically involves closing costs, ranging from 2% to 5% of the loan amount, along with appraisal fees and other charges.
In Montana, the average refinance rate for a 15-year fixed loan is 5.96%, while a 30-year fixed loan is 6.85%. Rates in Billings are likely to reflect these state averages, but the rate you qualify for may vary based on factors like your credit score and debt-to-income ratio.
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.
