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House hunting can be stressful, but online tools like a Montana mortgage calculator can make the process smoother. By using this mortgage calculator, you can learn the monthly payment amount and total interest cost for your home purchase. You can experiment with a variety of scenarios by plugging in different home prices, down payment amounts, and interest rates to see if the payments work for your financial situation.
Key Points
• Use our Montana mortgage calculator to help estimate the monthly payment and total cost of borrowing money to buy a home.
• In general, your monthly mortgage payment should not exceed 28% of your gross monthly income.
• Get familiar with key terms like total interest paid, and how that figure can help you compare scenarios and mortgage offers.
• Montana first-time homebuyer programs offer down payment and closing cost assistance.
• There are ways to reduce your mortgage payments, such as bundling insurance policies with your homeowners provider to get a discount.
Montana Mortgage Calculator
Calculator Definitions
• Home price: The home price is the agreed-upon purchase price with the home seller. This may differ from the listing price and your initial offer.
• Down payment: The down payment is the amount you plan to pay upfront. It’s often expressed as a percentage of the total home price, typically anywhere from 3% to 20%. A larger down payment can lower your monthly mortgage payments and eliminate the need for private mortgage insurance (PMI). Down payment assistance programs can help cover this cost.
• Loan term: The loan term is the length of time you have to repay the mortgage, typically 15 or 30 years. A 15-year fixed mortgage has higher monthly payments but costs less in interest over the loan term, while a 30-year fixed mortgage offers lower monthly payments but costs more over time. The Montana mortgage calculator can help you compare how different loan terms affect your monthly payments.
• Interest rate: The interest rate is the cost of borrowing money. It’s expressed as a percentage of the loan amount and varies based on a variety of factors, including your credit score, market trends, and the type of mortgage loan.
• Annual property tax rate: Local governments charge property tax on your land and buildings within guidelines set by your state. To find your property tax rate, go online and search for the town, county, or ZIP code where the property is located and the phrase “effective property tax rate.”
• Monthly payment: The monthly payment includes the principal and interest of the home loan. Our calculator also factors in property taxes. Some lenders also include homeowners insurance and homeowners association (HOA) fees in payments.
• Total interest paid: The total interest paid represents the entire amount of interest you will pay over the life of the loan. By making a larger down payment, having a lower interest rate, or a shorter loan term, you can reduce your total interest paid.
• Total loan cost: The total loan cost is the entire price you will pay for the loan, including the principal that you repay and the interest.
How to Use the Montana Mortgage Calculator
Step 1: Enter Your Home Price
Type the home price, which is the agreed-upon purchase price with the home seller.
Step 2: Select a Down Payment Amount
Choose the percent of the home price you will pay upfront. A larger down payment can reduce monthly payments and total interest paid. Use a down payment calculator to determine the right amount for your budget.
Step 3: Choose a Loan Term
Select the length of time you would like to repay the mortgage, anywhere from 10 to 30 years. A longer term means lower monthly payments but more interest over time.
Step 4: Enter an Interest Rate
Input your estimated interest rate to the second or third decimal point. A lower rate reduces monthly payments and total interest paid.
Step 5: Add Your Annual Property Tax Rate
Enter the home’s property tax rate as a percentage. For example, type 1.2 if the rate is 1.2%. Find your property tax rate by searching online for the town, county, or ZIP code where the property is located and “effective property tax rate.”
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator helps you estimate how much house you can afford by calculating monthly payments based on loan amount, interest rate, and term. Use this tool to compare costs, like how different interest rates affect payments. Check out different loan terms to see their impact on expenses and total interest. The calculator can also help you see how your down payment figures in.
While Montana housing prices are higher than the national average, the state enjoys relatively low property taxes on residential real estate as compared to the national property tax rate average, which is 0.90%.
In Montana, the median home sale price in mid-2025 was $534,700 — much higher than the national median of around $443,000, according to Redfin.
Working under the 28/36 rule that says your maximum mortgage payment should be 28% of your gross income, you’d need to earn an annual income of about $121,000 if you were looking to afford a $530,000 home, factoring in a 20% down payment ($106,000), a 30-year mortgage at 7.00% and an average Montana property tax rate (0.79%). Your other monthly debts shouldn’t exceed 36% of your gross income, or $808.
Use a home affordability calculator to factor in your income, debts, and other housing costs. This tool can help you ensure your home purchase aligns with your financial goals and constraints.
Another way to get a clear picture of what your budget can bear is to go through the mortgage preapproval process with a lender. You’ll provide some detailed financial information, they’ll check your credit score and assess your stats and if you qualify, you’ll be preapproved for a loan amount.
If you are purchasing a pricey property, consider something called a jumbo loan. This type of loan is designed for when your loan amount is over the conforming loan limit set by the Federal Housing Finance Agency (FHFA).
Components of a Mortgage Payment
The main components of a mortgage payment are the principal amount borrowed and the interest charged. This home mortgage calculator also factors in property taxes, which are often included in the monthly payments. Your payment could also include PMI, homeowners insurance, and homeowners association (HOA) fees, depending on your situation.
If you’re looking into a home loan guaranteed by the Federal Housing Administration (FHA), then use an FHA mortgage calculator, which factors in both the loan’s upfront and ongoing mortgage insurance premiums.
A VA mortgage calculator is the right tool if you’re seeking a loan backed by the U.S. Department of Veterans Affairs.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Cost of Living in Montana
The cost of living in Montana is comparable to the average cost of living nationally. When you think about purchasing a home, look at the cost of living, which reflects how much you can afford in a certain area. Higher cost of living states — like California and New York — typically have higher average home prices, utilities, home maintenance, transportation, and other necessities. A dollar spent in Billings, Montana, for example, would go a lot further than a dollar spent in a major city like New York.
The cost of living index (COLI) helps you figure out how much money it takes for you to maintain a basic standard of living in a given place. A COLI higher than 100 means the region is more expensive than the national average, while a COLI below 100 indicates it is less expensive.
Montana’s 2024 COLI was 95.5, according to the Council for Community and Economic Research’s Cost of Living Index, similar to nearby states like Idaho (99.9) and Wyoming (93.7).
To further consider living costs, Billings had a 2024 COLI of 99.8 and Great Falls was 90.0, much less expensive cities than Seattle (145.1) or Chicago (115.1). Overall, living in Montana is much more affordable than most places around the U.S. California (142.3), Massachusetts (141.2) and New York (125.1) have some of the highest standards of living in the U.S.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Tips on Reducing Your Mortgage Payment
Your mortgage payment is probably your largest recurring expense, so reducing this monthly payment, even slightly, could free up resources to tackle other debts or help you build that emergency fund. Here are some tips to help you lower your mortgage payment:
• Once you’ve built 20% equity in your home, request that your lender cancel PMI payments to save on unnecessary costs.
• Make additional payments toward the principal to decrease both the term of your loan and the total interest paid over its lifetime.
• Take a closer look at your property taxes. If you think you’re paying too much in property taxes, go to the Montana Department of Revenue or your county tax appeal board to ask about the appeals process.
• Look into bundling with your insurance provider. Sometimes if you purchase more than one policy with them — both a homeowners and auto policy, for example — they may offer a discount.
• If mortgage rates have dropped since you made your purchase, consider a mortgage refinance.
• If you are experiencing financial difficulties, consider a loan modification. A modification changes the terms of a loan, like having a new repayment timetable, a lower interest rate, or a switch from an adjustable rate to a fixed rate. Be prepared to show proof of financial hardship with bank statements or tax returns.
For first-time homebuyers in Montana, there are state-based programs that offer low-interest mortgage loans and assistance with closing costs and down payments. Many are income-based, so you may need to meet income limits and other criteria to qualify. One condition to qualify as a first-time homebuyer is that you must not have owned a primary residence within the past three years.
The Montana Board of Housing administers programs for first-time homebuyers including the Bond Advantage Down Payment Assistance Program to help cover a down payment. Check with the Montana Department of Commerce for details and eligibility.
The Takeaway
The Montana mortgage calculator is a valuable tool to help you in the home-buying process. You can use it to estimate monthly payments, understand the impact of different down payment amounts, and compare various loan terms and interest rates. This tool can provide a clearer picture of your financial obligations and help you make informed decisions about your home loan. Whether you’re a first-time homebuyer in Montana or looking to refinance, the mortgage calculator can be a helpful resource in planning your homeownership journey.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
How does my credit score affect my mortgage loan interest rate?
Your credit score significantly affects your mortgage interest rate. A higher score often leads to better loan terms and lower interest rates, while a lower score may result in higher rates and more stringent lending requirements.
How much should my down payment be on a mortgage?
How much you put down should be what you feel comfortable with, taking into account your financial situation. A 20% down payment can help avoid private mortgage insurance (PMI) and could reduce monthly payments and overall loan cost. A first-time homebuyer can sometimes put down as little as 3% toward the purchase price of a home, while a repeat buyer may be able to contribute just 5%. To determine how much your down payment should be, review your financial picture and figure out what makes sense for you.
Should I choose a 30-year or 15-year mortgage term?
When choosing a mortgage term, consider that a 30-year term offers lower monthly payments but costs more in interest over time, while a 15-year term has higher monthly payments but costs less in interest overall. Assess your financial goals and budget when opting for a certain term.
How can I secure a lower interest rate?
Improve your credit score to 700 or higher for the most competitive rates (you will need a 620 credit score to qualify for a home loan). Go through the prequalification process with a variety of lenders and compare rates. If you can afford it, consider putting down a larger down payment. If you already own a home, you can explore a mortgage refinance and compare the cost of your old loan versus a new one (plus closing costs) at a new, lower rate.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
