Best HELOC Rates in Montana

Key Takeaways

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Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Montana with an 80% LTV is 8.5%, compared with 8.6% for a 90% LTV.

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HELOC rates vary by city in Montana. Ekalaka has an average APR of 5.5%, whereas Lakeside's is 10.3%.

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Different lenders offer varying rates for the same loan types. Community 1st Federal Credit Union's average APR is 5.5%, whereas First Interstate Bank's is 10.3%.

Current HELOC Rates in Montana

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Best HELOC Rates in Florida

HELOC rates in Montana have risen from 4.5% in 2020 to 8.6% in 2024. If this trend persists, homeowners may encounter higher costs, making it wise to consider locking in a rate now.

HELOC Rates in Montana by LTV Ratio

HELOC rates in Montana vary depending on your loan-to-value (LTV) ratio and line limit. A lower LTV ratio means more equity in your home, making lenders view you as less risky. For instance, an 80% LTV is less risky than a 90% LTV, reducing the chances of default on your HELOC.

The following table lets you filter between different loan amounts, offering a clearer view of what you may qualify for:

Data filtered by:Results filtered by:
Line Limit:
Line Limit:$100,000

HELOC Rates in Montana by City

HELOC rates in Montana vary by city due to differences in local housing markets and lender competition. For instance, cities with robust real estate markets might see lower rates.

Use the table below to filter by your city and see average APRs for $50k and $100k HELOCs.

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City:
City:Billings

HELOC Rates in Montana by Lender

HELOC interest rates in Montana vary among lenders based on pricing strategies and risk assessments. Comparing rates can help you find the best deal. The table below highlights the five lenders in Montana offering the lowest average APRs, aiding your decision-making process.

Community 1st Federal Credit Union5.5%
Bank of the Rockies7.5%
Altana Federal Credit Union7.8%
Billings Federal Credit Union8.3%
Grasslands Federal Credit Union8.3%

HELOC rates today can differ significantly among lenders in the same city. Use the table below to filter by city and compare APRs, helping you find the most competitive rate in your area.

Data filtered by:Results filtered by:
City:
City:Billings
COMPARING HELOC RATES IN MONTANA: BANKS VS. CREDIT UNIONS

HELOC rates in Montana vary between banks and credit unions due to their different operational models. Commercial banks typically have higher rates, with the best HELOC rate in Montana at 8.7%. In contrast, credit unions offer slightly lower rates, averaging 8.5%, as they are not-for-profit institutions.

When choosing between the two, consider more than just rates. Banks might offer more convenience, whereas credit unions often provide better customer service and lower fees. It's important to check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.

Ask the experts:

What are the common fees or costs associated with HELOCs that borrowers should be aware of, and how do these affect the overall cost of borrowing?

Credit & Mortgage Expert

Most banks and credit unions charge little to no fees when getting a HELOC. Typically, you will pay the cost of the appraisal — anywhere from $150 to $450 depending on the type of appraisal done. But closing costs are usually covered by the bank or credit union. This is why it’s best to shop around with at least three different lenders when applying for a HELOC to compare not only the rates but also any costs involved. Getting a rate that is 0.25% lower but having to pay a couple thousand dollars in costs may not make financial sense.

HELOC Payment Calculator

HELOCs have become a popular tool for homeowners across the U.S. looking to tap into their home's equity. Use our Montana HELOC payment calculator to determine your monthly payments based on amount draws, loan terms, and APR.

It also provides an amortization schedule, detailing the division of payments between principal and interest over time. Understanding these aspects can help you manage your HELOC more effectively and plan your finances.

Montana HELOC Payoff Calculator

This HELOC payment calculator assumes that you take out one lump sum at the start of your interest-only period. Your actual payoff schedule will vary depending on your interest rate and market conditions.

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How to Get the Best HELOC Rates in Montana

Finding the best HELOC rates in Montana can save you thousands over the loan's duration. For example, securing a rate that's 1% lower could reduce your monthly payment significantly. Consider these five strategies to find the most competitive rates:

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    Maintain a strong credit score

    The average credit score in Montana is 732. Improving it can help you secure better rates from lenders.

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    Compare offers from multiple lenders

    Shopping around can help you find competitive rates and use offers to negotiate better terms.

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    Reduce your debt-to-income (DTI) ratio

    Lower debt-to-income (DTI) ratios show financial stability. Pay off credit card debt to improve your ratio.

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    Increase your home equity

    More equity means less risk for lenders. Consider paying down your mortgage or making home improvements.

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    Review closing costs and rate caps

    Closing costs can affect expenses. Knowing rate caps helps manage HELOC adjustments.

HELOC Loan Rates vs. Home Equity Loan Rates in Montana

HELOC interest rates in Montana average 8.5%, higher than the 7.7% for home equity loans. This difference stems from HELOCs having variable rates, which can rise over time.

  • HELOCs offer a revolving credit line with variable rates that adjust with market conditions. In rising interest rate environments, this can lead to higher costs, impacting homeowners' long-term finances.
  • By contrast, home equity loans provide a lump sum with a fixed rate, ensuring consistent payments. They are preferable for those who prioritize financial certainty.

When deciding between these options, consider your financial goals and stability. Evaluate whether you need the flexibility of a HELOC or the predictability of a home equity loan, and assess how changes in interest rates might affect your budget. Both allow you to borrow against your home's equity, so choose based on your financial needs and risk tolerance.

CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE

Cash-out refinance is an HELOC alternative, replacing your existing primary mortgage with a larger loan for cash access. Unlike HELOCs or home equity loans, it creates a new primary mortgage.

For example, with a Federal Housing Administration (FHA) mortgage valued at $300,000 and a $150,000 balance, an FHA cash-out refinance for $200,000 provides $50,000 cash, with payments based on $200,000.

FAQ: Best HELOC Rates in Montana

What are the current HELOC rates in Montana and how do they compare to national rates?
What fees are commonly associated with HELOCs in Montana?
How do HELOC rates in Montana compare to home equity loan rates?
How do HELOC Rates in Montana vary between banks and credit unions?
What's the best HELOC rate in Billings? How does it compare to the current HELOC rate in Montana?

MoneyGeek examined 26 different banks and credit unions in Montana using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity line of credit rates.

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This data is accurate as of October 16, 2024.

26Lenders Analyzed

About Zachary Romeo, CBCA


Zachary Romeo, CBCA headshot

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.