Montana Mortgage Calculator: Estimate Your Monthly Payment

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Updated: January 18, 2024

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On average, mortgage payments in Montana cost $24 less than the national average. Lenders often compute mortgage payments by evaluating several key factors such as the state’s property tax, your home’s purchase price and your household income. For instance, a Montana homebuyer is expected to pay $1,135 on their monthly mortgage. With the average household income at $5,913, mortgage payments already account for about 19% of this total.

Use MoneyGeek’s research-backed Montana mortgage calculator to get an overall picture of how much your mortgage payment will cost, and compare the offerings of multiple lenders. This comprehensive guide will instruct you on how to use the calculator and provide you with strategies to keep your payments low.


Start Here: Plug In Your Mortgage Factors

The cost of your monthly mortgage payment will depend on several key factors, which are all included in MoneyGeek’s Montana mortgage calculator. You can find descriptions of these factors below.


Why and How to Use Our Mortgage Calculator

A home is one of the biggest investments that an individual can make. That is why creating a well-planned budget is a must for obtaining your goals and avoiding financial pitfalls. This includes determining which type of mortgage is right for you and how much you can actually afford.

The average home in Montana costs $242,100, while the average monthly mortgage payment is $1,135. The state also ranks at the top half nationally in terms of mortgage rates.

To find out how much your mortgage could cost, use MoneyGeek’s Montana mortgage calculator by providing the following information.


Home Price:

Input either the maximum price you can afford or the loan amount you are aiming for.


Down Payment:

You can enter your initial upfront payment either as a percentage of the home price or as a dollar amount.


Interest Rate:

Enter the loan’s interest rate offered by the mortgage lender. Use MoneyGeek’s daily mortgage rates report to guide you.


Loan Terms:

This is the length of time you need to pay off your loan. The most common terms last for 15 and 30 years.


Payments per Year:

Borrowers could choose how many times they will pay their mortgage in a year, with most going for the monthly option.


Property Tax:

It is the annual tax that you pay to the local government of Montana. Property values are reappraised every two years.


HOA Fees:

If your property has a homeowners association (HOA), you will be required to pay annual or monthly dues.


Principal & Interest:

The principal is the amount of money that you borrow and the interest is the amount you pay in exchange for the loan.


Monthly Payment:

It is the total payment due per month, which includes your principal and interest, property taxes, homeowners insurance premiums and possible HOA dues.


Principal Payment:

This goes toward paying off the original amount owed. You will reduce the loan balance and interest payments by making larger principal payments.


Interest Payment:

It covers the interest that your lender charges for giving you the loan.


Total Cost with Interest:

This is the total amount that you need to pay the lender based on the factors outlined above.

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MoneyGeek has outlined a few ways to keep your monthly mortgage payments at a minimum. Here are some tips that might help you make your dream home yours.

  • A less expensive house will require lower mortgage payments.
  • Save up more to make a larger down payment. This reduces your principal, interest and the time it will take you to pay off your loan.
  • Shop and compare rates from different lenders to ensure you are getting the lowest possible rates.
  • Check if you qualify for mortgage assistance programs. For most Montana home buyers, the state offers down payment assistance programs that can be used to cover the down payment and closing costs.

Next Steps: What to Do After You Have Estimated Your Mortgage Payments

Most people looking for the best mortgage deals are easily discouraged by the technical terms associated with home buying. Let MoneyGeek’s resources guide you in getting all the necessary information.

  1. Shop & Compare Rates - Find the right plan for you by comparing the various offerings of different competing lenders in Montana.
  2. Not Ready to Buy? - Take a closer look at your finances to see if it is best to buy or rent a house.
  3. Learn More - Take advantage of loan assistance programs such as FHA loans and VA home loans, as well as reverse mortgages to get lower mortgage payments.

Frequently Asked Questions About Mortgages in Montana

You must first determine how much you could comfortably set aside for payments. Most lenders prefer a debt-to-income (DTI) ratio of 43%.

The average outstanding mortgage amount in Montana is $180,711.

Current down payment rates are at 2%-3.75%. Fortunately for Montana home buyers, the state offers several down payment assistance programs that can cover the down payment and closing costs.

If you cannot pay a down payment of 20% upfront, you will almost always be required to take private mortgage insurance (PMI).

The average annual property tax in Montana costs $1,818. This places the state at the top 20 nationally in terms of affordability.

The average monthly mortgage payment in Montana is $1,135, which is $24 less than the national average.

The median home price in Montana is $242,100.