Montana Mortgage Rates

October 13, 2015 12:43 PM Eastern

Refinance rates now in BILLINGS, MT [Change this]

Home Price (Purchase)
When you get a mortgage to purchase a home, the lender uses the lower of the agreed-upon purchase price or the property's appraised value to determine your maximum loan amount. The loan amount divided by the property home price equals your loan-to-value ratio, or LTV. That ratio is one of the major factors that lenders use to set your mortgage rate. If your LTV exceeds 80 percent, you'll probably be required to pay mortgage insurance, which increases your monthly payment. If the property appraises for less than the agreed-on purchase price, you are not usually required to complete the purchase.
Home Value (Refinance)
This is your estimate of the current value of your property. When you refinance, your home is almost always evaluated by a licensed appraiser. The refinance loan amount divided by the property's appraised value equals your loan-to-value ratio (LTV), and that number is one of the major factors that determine your mortgage rate. To get an accurate refinance rate quote, your home value estimate must be reasonably accurate.
Down Payment
The down payment is the amount you pay upfront when you finance property. Your purchase price minus your down payment equals your mortgage amount. The higher your down payment, the more likely you are to be approved for a home loan. If your down payment is less than 20 percent of the purchase price, you'll probably be required to pay for mortgage insurance, which increases your monthly payment.
Credit Score
Your credit score is a number designed to measure your credit-worthiness. It's based on a formula that combines many factors, including your payment history, amount of credit used and number of accounts. This number is used by lenders to calculate the probability that you'll default on your mortgage. Most lenders won't approve mortgages to applicants with credit scores lower than 620. Your credit score is one of the most important factors that determines your mortgage rate - applicants with higher scores are offered better mortgage rates.

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Mortgage rate quotes displayed on LendingTree LoanExplorer℠, including loan pricing data, rates and fees, are provided by third party data providers including, but not limited to, Mortech®, a registered trademark of Zillow®, LoanXEngine, a product of Mortgage Builder Software, Inc., and LoanTek, Inc.

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Montana Mortgage Rates and the Housing Market
The big sky country of Montana can be a great place to settle down and raise a family, or to explore the wonders of the great American wilderness. 

Cities like Billings, Missoula, and Bozeman represent the state's more metropolitan areas, while Evergreen, Laurel, and Helena Valley offer a more pristine view of Montana's natural beauty.  Big city or big sky, you can find a perfect home to fit your needs with current MT mortgage rates.

The Single Family Program Offers Lower Montana Mortgage Rates
The Montana Department of Commerce has been helping homeowners find and finance the home of their dreams since 1977 with The Single Family Program. Its purpose is to assist low-income and moderate-income Montanans purchase homes in the State of Montana. The program features below-market MT mortgage rates to allow buyers to purchase and existing house or to build a new one.

The Single Family program is primarily for first-time homebuyers. However, those living in specially designated target areas can be past or current owners and still take advantage of the special financing.

Mortgage Rates and Loans for Montana Seniors
Seniors on fixed incomes often have trouble meeting monthly payment obligations, though their often homes have significant equity that has not been tapped.

In response to these situations, The Department of Commerce offers a reverse annuity mortgage (RAM) program which enables seniors in Montana 68 years or older to borrow the equity in their homes and benefit from the fixed monthly income it provides. The program is offered through lending partners around Montana and requires the senior borrower attend counseling sessions before they can be approved. Income limits and other requirements apply.

Jumbo Mortgage Loans in Montana
Those seeking loans above the conventional conforming loan limits set by the Federal Housing Administration (FHA) will likely need a jumbo loan to finance the purchase of their home. Jumbo loans are riskier loans for lenders, and as a result, they typically carry higher mortgage rates than conventional loans. Higher mortgage interest rates combined with larger loan amounts can mean much higher monthly mortgage payments.  To estimate your monthly loan payments use one of the mortgage calculator tools found here.

Before deciding on whether a jumbo loan is the way to go, make sure you've thoroughly researched all the loan options available to you. You can start by speaking to lenders found right here at about current MT mortgage rates, application procedures, and required documentation.