Buy a house in Montana
According to Zillow, the typical value of a house in Montana is higher than the typical value of $ 298,933 in the United States. The value of a typical Montana home is $ 367,030, and home values have increased 20.7% in the past year.
Historic mortgage rates for Montana
Looking at the average mortgage rates in Montana since 2010, you can see the trends for 30-year fixed mortgages, 15-year fixed mortgages, and 7/1 adjustable mortgages:
Seeing how today’s rates compare to historic Montana mortgage rates can help you decide if you would be getting a good deal on getting a mortgage or refinancing now.
Montana First-Time Home Buyers Programs
Montana housing offers two down payment assistance options for first-time home buyers. You may be eligible for any of the following programs if you get a mortgage from a participating lender:
- Bond Advantage Down Payment Assistance Program: Get a loan of up to 5% of the selling price of the house, to a maximum of $ 10,000. You will repay the loan over 15 years.
- MBOH Plus Deferred Down Payment Assistance Program 0%: Borrow up to 5% of the selling price of your home, max $ 6,500. You will not pay any interest or make monthly payments. You will pay off the loan when you sell, refinance, or fully pay off your mortgage.
- Mortgage from the Federal Housing Administration: You can get a 3.5% down payment with a credit score of at least 580, or get a mortgage with a credit score between 500 and 580 with 10% down payment using this loan, also known as an FHA loan. .
- Mortgage loan from the United States Department of Agriculture: These loans, also known as USDA loans, can be useful if you are a low to moderate income borrower looking to buy a home in a rural or suburban area.
- Veterans Mortgage: These mortgages, also known as VA loans, are intended for active duty military or veterans, or spouses of deceased members and may offer lower interest rates than conventional mortgages.
Refinance Your Mortgage in Montana
Mortgage refinance rates are currently at their lowest, so it might be a good idea to replace your current mortgage with a mortgage that offers a better interest rate, especially if the new rate is significantly lower.
You can decide to refinance with the same lender who gave you your original mortgage, but that’s not always the best idea. Another lender may offer you a better deal the second time around. Look for a company that will offer the best interest rate and charge relatively low fees.
How to get a low interest rate on your mortgage
Here are some tips for getting a good interest rate on your mortgage:
- Save more for a down payment. With a conventional loan, you may be able to deposit as little as 3%. But lenders reward a higher down payment with a better rate of interest. Mortgage rates should stay low for a while, so you may have time to save a larger down payment.
- Increase your credit score. Many lenders require a minimum credit score of 620 to receive a mortgage. But you can get a better interest rate with a higher score. The most important factor in increasing your score is paying all of your bills on time.
- Reduce your debt ratio. Your DTI is the amount you pay for your debt each month divided by your gross monthly income. Most lenders want to see a 36% or less DTI for a conventional mortgage, but a lower DTI may result in a lower rate. To improve your DTI, pay off your debts or consider opportunities to increase your income.
- Choose one federally guaranteed mortgage. If you are eligible, you may want to consider a USDA loan (for low to moderate income borrowers purchasing in a rural area), a VA loan (for military personnel and veterans), or a FHA loan (not designated for a particular group). These loans usually have lower interest rates than conventional mortgages. As an added bonus, you won’t need a down payment for USDA or VA loans.
Improving your financial situation and choosing the type of mortgage loan that is right for your needs can help you get the best possible interest rate.
Mortgage and refinancing rates by state
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