Montana Mortgage Refinance

Home owners in Montana can receive big tax savings when they refinance their home mortgage. The IRS allows Montana home owners to deduct annual property taxes, interest and points paid on their mortgage loan. Lenders in Montana are offering competitive mortgage refinance rates too. Home owners can receive rates as low as 5.28% APR on a 30 year fixed product or 4.55% APR to 4.79% APR on a 15 year fixed. Knowing the difference between a fixed and adjustable rate mortgage (ARM) is vital to making an informed decision. A fixed rate product provides security for a more conservative borrower because the rate remains the same throughout the life of the loan. Home owners in Montana may also be interested in an ARM because it offers a lower interest rate, but the rate changes with fluctuations in the market. Currently, lenders are offering a rate of 3.92% APR on a 5/1 ARM. Also, before deciding on a mortgage refinance product and lender, “Big Sky” homeowners should be wary of mortgages that have little principal reduction during the first few years. Although the payments will be lower, slow debt pay off also means slow home equity growth. Also, every home owner should know his or her home’s value before refinancing. Homes throughout the state, (population 944,632) have home values ranging from $222,094 to $260,720. The average property price in Montana is $217,243. Homes in Billings (59101), for example are selling for anywhere from $80,000 to $116,000. In Helena (59601) homes are selling for $149,900 to $379,900.