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Montana offers all of the typical mortgage products with adjustable rate mortgages being the preferred method of loan in the state. Montana has 3 separate adjustable rate mortgage programs that are commonly used which are 30/7/1, 30/5/2 and 30/2/1. Conventional 30 or 15 year fixed rates are also available. Montana has several special mortgage programs designed to fit the needs of its citizens. This includes an interest only program that allows you to pay interest only for the first 5 years, Educator mortgages which are designed to assist people in the teaching profession and Special Needs loans for those that have handicaps. Also available in Montana are FHA first time home buyers low interest loans, regular FHA or VA loans and USDA loans for rural properties. Poor credit programs are available through different lenders within the state.

Montana Mortgage Rates

Interest rates in Montana are comparable to the national average. Rates on adjustable rate mortgages offer the lowest of any mortgage program. However, applicants must remember that these rates increase over time. Conventional mortgages are slightly higher than the ARM’s, but are still in sync with the rest of the country. Mortgage rates will vary from lender to lender and will depend on the type of loan and down payment that has been made. Credit history, employment and other financial factors will be used to determine risk, and once risk is determined a mortgage rate will be set. Some lenders offer an option to purchase points to reduce the interest rate.

Montana Refinance Rates

Montana has very competitive refinance rates. Refinancing can be done as an interest reduction loan or as a way to consolidate bills. Lump sum payout refinancing can also be done in Montana, providing home owners a way to access their equity to make repairs or improvements to their home. Unique to the state, Montana has a loan program that is considered under the refinancing laws that will provide a 5 year loan for repairs on the home through the Montana Housing Authority.

Montana Mortgage Brokers and Lenders

Montana has a large variety of banks, credit unions and private lenders available to use for mortgage lending. The state does allow internet mortgages if the company is licensed. Private lending institutions and credit unions often offer incentives, such as no closing cost loans or reduced interest rates to encourage competition. A review of several of the offerings within the state should allow potential home owners to find the best deal on a loan.