Current 30-year fixed mortgage refinance rates are averaging: 7.38%
The current average rate for a 15-year fixed mortgage refinance is: 7.02%
See whether refinancing makes sense for you using our mortgage refinance calculator.The current mortgage rates forecast is for rates to remain between 6% and 7% for most of 2024. However, our senior economist Jacob Channel notes that if the Federal Reserve lowers the federal funds rate later on this year, mortgage rates could fall below 6%.
No matter what interest rates do, though, housing is very likely to remain expensive. The housing affordability crisis is rooted in high prices, low housing stock and low home sales in addition to high mortgage rates.
Some of the factors determining mortgage rates are out of your control, but there are a few steps you can take today to get the best mortgage rate:
When should I lock in my mortgage rate?Once you’ve received a loan estimate with an offer that looks promising, you should request that the lender lock your mortgage rate. If you skip this step, your interest rate could increase before you make it all the way through the closing process.
The Montana Board of Housing (MBOH) offers a 30-year home loan program for first-time homebuyers and those purchasing in targeted areas. The loans come with low interest rates and can be FHA, USDA, VA or Section 184 Indian home loans.
Borrowers must:
Be a first-time homebuyer or qualified veteran, or purchase in a targeted area
Meet the program’s income and purchase price limits
Complete a homebuyer education course (borrowers with a credit score over 680 in addition to low DTI ratios may qualify for an exemption)
People who have never owned a home
People who haven’t owned a principal residence in the last three years
Montana’s targeted areas include Blaine County, Deer Lodge County, Flathead County, Hill County, Mineral County, Missoula County, Sanders County, Silver Bow County, as well as several specific Census tracts in Gallatin and Lincoln counties and the City of Great Falls.
Borrowers who qualify for the regular bond loan program described above may also qualify for a set-aside loan, which comes with lower interest rates. This program connects borrowers with down payment assistance through a nonprofit organization that will pay up to $45,000 toward the purchase price of the home.
Borrowers must:
Be a first-time homebuyer or qualified veteran or purchase in a targeted area
Meet the program’s income and purchase price limits (the nonprofit you work with may have lower limits than MBOH)
Complete a homebuyer education course
This program offers up to $15,000 to help you cover a down payment and closing costs. The funds will come through a second mortgage loan, but you won’t have to make any monthly payments on the loan. In fact, you won’t have to repay those assistance funds until you either pay off the home’s first mortgage, or sell, refinance or transfer ownership of the home.
Borrowers must:
Use the program in conjunction with a 30-year loan through a MBOH program
Have a 620 minimum credit score
Complete a homebuyer education course
Contribute at least $1,000 toward the home purchase (funds can be gifted to the borrower)
Get the full details about each of these programs at Montana Housing’s website.→ Montana conventional loans. Conventional loans are a common choice for borrowers with good credit, since they frequently offer the best annual percentage rates (APRs) around. The minimum requirements for these loans are set by Fannie Mae and Freddie Mac.
→ Montana FHA loans. FHA loan requirements can be a welcome alternative to conventional loans for borrowers with lower credit. You can qualify with a score as low as 500 if you’re able to make a 10% down payment. If your down payment fund isn’t quite that large, don’t worry — you can still qualify, but you’ll need at least a 580 score for a minimum 3.5% down payment.
→ Montana VA loans. VA loan requirements give veterans and other qualified military borrowers a lot of flexibility when it comes to qualifying for a home loan. Borrowers with full VA entitlement can purchase or refinance without making a down payment at all. They also won’t have to pay for mortgage insurance the way they would with other common loan types.
→ Montana streamline refinances are for those looking to refinance using either an FHA streamline refinance loan or VA interest rate reduction refinance loan (IRRRL). They’re known as “streamline” loans because they require less paperwork and less hassle than other common refinance types. However, you can only use this faster track if you’re refinancing from an FHA loan into an FHA loan, or from a VA loan into another VA loan.
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