Montana Mortgage Rates
Compare Montana mortgage rates and choose the best option for your needs.
- Minimum 620 credit score needed to prequalify
- 0% down USDA loan for rural homebuyers
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- 0% Down VA Loans for Veterans & Military
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Mortgage in Montana: Top Lenders in 2024
Willing to buy a home in Montana State? Opting for a mortgage loan is often the easiest route, regardless of whether you're searching for a residential estate or an apartment. However, it's important to note that the terms of home loans can vary greatly among different mortgage lenders (use our mortgage calculator to estimate your future expenses). In this guide, we'll review some of the top-rated lenders and help you determine which ones are worth considering based on factors like interest rates, fees, customer service, and overall reputation.
MT Mortgage Lenders Comparison
All the lenders reviewed are reputable companies with reasonable rates and solid track records. To provide you with the most detailed information, we'll compare them based on several key criteria such as APR, minimum down payment, eligibility requirements, and more.
Morty, Inc. Mortgage
Not a lender by itself, but a mortgage broker, Morty, Inc. established in 2016, operates as a mortgage broker rather than a lender. While physically headquartered in New York City, Morty offers close-to-nationwide coverage, excluding Hawaii, Massachusetts, Missouri, and Nevada.
Their available options include fixed- and variable-rate conventional and jumbo mortgages, along with FHA-insured loans. Refinancing is solely available for loans initially issued through Morty.
For instance, a 30-year fixed-rate mortgage carries a 6.667% APR, while rates for 20- and 10-year loans are lower at 6.425% and 5.452% respectively. Morty requires applicants to have a credit score of at least 600 and a debt-to-income ratio of 45% or less. The minimum down payment varies based on property size.
| Pros: | Cons: |
|---|---|
| A closing date guarantee. | No general refinancing. |
| Large partner network. | No VA or USDA plans. |
NBKC Bank
NBKC Bank established in 1999 and based in Kansas City, operates across all 50 states and the District of Columbia. Their mortgage offerings cover a wide range of options, including conventional mortgages with APRs of 7.125% for 30- or 25-year terms, 7% for 20 years, and 6.145% for 15 years. Additionally, there's a flat $250 fee that encompasses all stages of the loan process.
Beyond conventional mortgages, NBKC Bank provides jumbo loans, refinancing, construction loans (limited to Kansas City), FHA and VA loans, and an exclusive program for pilots. Clients have the flexibility to choose between fixed and floating rates for conventional mortgages. Eligible clients must demonstrate a credit score of at least 620.
| Pros: | Cons: |
|---|---|
| Covers all 50 states and Washington D.C. | Construction loans restricted to Kansas City. |
| Free rate lock-in for 75 days. | USDA loans are not available. |
| Closing cost guarantee. |
AmeriSave
AmeriSave established in 1999 and based in Kansas City, operates across all 50 states and the District of Columbia. Their mortgage offerings cover a wide range of options, including conventional mortgages with APRs of 7.125% for 30- or 25-year terms, 7% for 20 years, and 6.145% for 15 years. Additionally, there's a flat $250 fee that encompasses all stages of the loan process.
Beyond conventional mortgages, NBKC Bank provides jumbo loans, refinancing, construction loans (limited to Kansas City), FHA and VA loans, and an exclusive program for pilots. Clients have the flexibility to choose between fixed and floating rates for conventional mortgages. Eligible clients must demonstrate a credit score of at least 620.
| Pros: | Cons: |
|---|---|
| Highly lucrative mortgage rates. | Not all of the lender fees included in the closing costs are transparently disclosed at the lender’s website. |
| Diversity of loan types offered. This includes purchase and refinancing with fixed and adjustable rates, as well as the three main kinds of government-backed loans (FHA, VA and USDA). | |
| Easy and convenient, mobile-friendly application process. |
Average Mortgage Rate in Montana from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in Montana.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in Montana
| Criteria | Amount, $ |
|---|---|
| The median home value in Montana | $334,133 |
| The income required to buy the median priced home in Montana | $54,746 |
| The monthly mortgage payment required to buy the median priced home in Montana | $1,268 |
| The median household income for Montana | $62,546 |
Things to Consider When Choosing a Mortgage Lender
A mortgage loan entails undertaking a serious commitment for a term of 15 to 30 years. Therefore, you need to think twice before signing an agreement with any lender. There are some core aspects to consider when choosing a lending entity.
Type of Lender
Essentially, there are two popular options: banks and online mortgage lenders. Banks often offer attractive rates, but they tend to conduct strict credit checks. The approval process takes longer, and the eligibility criteria are relatively stringent. On the other hand, online lenders work much faster, and their requirements for homebuyers are not as strict.
APR and Fees
Every loan incurs costs, and a mortgage is no exception. These costs go beyond just the interest rate and include additional fees such as the origination fee, mortgage insurance fee, closing costs, and more. As of the current writing, in Montana, the average mortgage rate for a fixed-rate 30-year loan stands at 6.58%.
Terms and Conditions
Here, you need to consider the minimum size of a down payment, which can range from 0% to 20% depending on the loan type and your current status (such as military, employed, self-employed, etc.). Another crucial parameter is the lifespan of the loan, which refers to its total length. Common options include 15 and 30 years.
What Mortgage Lender is the Number One in Montana?
The list of reliable MT mortgage lenders is extensive, making it challenging to provide a definitive answer to this question. It all depends on various factors. For instance, one industry leader is Rocket Mortgage, which recorded a loan volume of $11.5 billion in 2021. To make an informed choice, consider reviewing our list of recommended lenders.
First-Time Homebuyer Programs in Montana
Buying a home for the first time can be quite challenging. Fortunately, residents of Montana can take advantage of several governmental programs aimed at enhancing mortgage affordability.
- Federal Housing Administration (FHA) loan program: Under this program, buyers receive insurance from the federal government, with the fee for this insurance included in the total loan cost. In return, homebuyers enjoy benefits such as a low interest rate and minimal credit requirements. For instance, the FICO score requirement can be as low as 500, and the debt-to-income ratio can be as high as 50%.
- USDA loan program: This program is targeted towards individuals living in rural areas. Participants can obtain a mortgage loan with a zero down payment. However, their annual income must not exceed 115% of the average income in their region.
- VA loan programs: These programs are insured by the Department of Veterans Affairs and are available to former military personnel or their spouses.
Pre-Approval: What Does It Mean?
Preliminary approval serves as confirmation of a prospective homebuyer's credibility, informing home sellers that lenders are prepared to approve a mortgage loan for the buyer. To obtain pre-approval, individuals need to provide documentary evidence of their paying capacity. A typical document set includes earning statements, account statements, a W2 form, or alternative proof of income for at least 2 years. Additionally, it is necessary to fill out the Uniform Residential Loan Application form.