Home Equity Loan Rates in Montana (November 2024)

The equity in your home that you can access and borrow is known as tappable equity. A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.

Montana's home equity loan rates are slightly below national averages — 7.6% APR for a 10-year term compared to 7.7% nationally, and 8.2% APR for a 15-year term compared to 7.9% nationally. We've compiled detailed insights on current home equity loan rates in Montana, including city-specific rates, top lenders, and tips on securing the best rates for using your home's equity.

The current average APR for a 15-year home equity loan in Montana is 8.2%, but several factors might affect what lenders offer. For instance, a higher credit score can lead to a lower APR, while a larger loan amount might result in a higher rate. Repayment terms also play a significant role in determining your APR. Below is a table comparing the current home equity loan rates in Montana across different loan terms.

Interest rates for a home equity loan change daily. Keeping track of these changes means you could pay less in interest over the life of the loan, saving you money. If you have high-interest debts, a home equity loan at a lower rate can help you consolidate those debts and reduce your overall interest payments.

For example, in Montana, a 15-year home equity loan with an 8.2% APR results in a monthly payment of $484 and a total interest of $37,051. In contrast, a 10-year loan with a 7.6% APR has a monthly payment of $596 and a total interest of $21,535.

The rate you qualify for depends on your loan-to-value ratio, which measures how much you owe on your mortgage compared to your home's appraised value. To calculate your LTV ratio, divide your current mortgage balance by your home's appraised value and multiply by 100. For instance, if your home is valued at $300,000 and you owe $240,000 on your mortgage, your LTV ratio is 80%.

A higher LTV ratio presents a higher risk to lenders, resulting in higher rates. In Montana, the average APR for a 15-year equity loan with an LTV ratio of 80% is 8.3%, while it is 8.0% for an LTV ratio of 90%. Use the table to see what rates you might qualify for based on your LTV ratio.

Average APRs vary between cities in Montana. Factors such as local job markets and differences in property taxes or local fees contribute to this variation. Cities with stronger job markets often have better rates, while differences in property taxes can also influence borrowing costs.

In Montana, Cut Bank has an average APR of 5.7%, while Missoula's average APR is 9.5%. Below is a table showing the average home equity loan rates for different terms across cities in Montana.

Home equity loan rates in Montana can vary significantly between lenders due to differences in individual policies and market strategies. For instance, 1st Liberty Federal Credit Union offers the lowest average APR at 5.7%, while Horizon Credit Union has the highest at 11.0%.

Comparing rates and terms from different lenders is essential for securing the lowest home equity loan rates. Explore the interactive table to see which lenders offer the best rates in your city.

Securing the best possible home equity interest rates can significantly enhance your borrowing experience by reducing monthly payments and overall loan costs, freeing up funds for other financial goals. Imagine using these savings to renovate your home or invest in education. To achieve the best home equity loan rates in Montana, consider these strategies:

MoneyGeek addresses common questions Montana homeowners have about home equity loan rates. By providing precise and reliable information, it ensures residents can access the details they need. This approach helps homeowners better understand their options and navigate the financial landscape with confidence.