Montana Has the 4th Smallest Increase in Mortgage Interest Rates

Missoula, MT (KGVO-AM News) - The increase on mortgage interest rates in Montana is among the smallest in the nation, according to a report from the financial website WalletHub.

I spoke with analyst Chip Lupo about the rather surprising good news for Montanans who are working hard to pay off their mortgages.

Montana has the Fourth Smallest Increase in Mortgage Interest Rates

“Montana had the fourth smallest increase in average mortgage interest rates,” began Lupo. “Now this is between the first quarter 2024 and the second quarter of 2024 at negative .14 percent according to our data. So basically, Montana is bucking an overall nationwide trend as being one of six states that actually saw its average mortgage interest rate decrease during that time frame.”

All Montana property owners have been very vocal about the increase in property tax rates due to the meteoric rise in property values. Lupo said Montana’s property tax rates are fairly standard in the U.S.

Lupo Said Montana Has a 'Fairly Moderate' Property Tax Rate

“Despite the fact as you mentioned, property taxes are going up, Montana still maintains nationwide a fairly moderate property tax rate,” he said. “They're somewhere in the middle of the pack, so I think they still have that going for them compared to other states. But Montana seemed to be just doing well overall in other areas when it pertains to mortgage and real estate.”

He said Montanans are doing well when it comes to keeping up with mortgage debt.

“Montana did very well in our mortgage delinquency rate study at 4.83 percent which was 37th overall, which is a good number, and fifth best among the states with adding the most mortgage debt to kind of tie all those things together,” he said. “And that's again, the interest rates and how they're doing. They're sort of a microcosm. Montana seems to be doing the right things when it comes to their mortgages.”

READ MORE: Montana Offers Reverse Annuity Mortgage Program to Seniors

Suggestions for Paying Off Your Mortgage Early

Lupo said making a priority of paying off your mortgage as quickly as possible will go a long way to bringing increased financial security.

“Things like making extra payments, even switching to bi-weekly payments, of course, refinancing and another key thing that people don't take into account is to use your windfalls strategically,” he said. “If you get a tax refund, a work bonus or inheritance, apply that towards your mortgage, because you won't even miss it. But you'd be surprised at how much your payments will go down if you take any extra income and apply that towards the principal you owe.”

The Montana Legislature will convene in January, and property tax relief will be one of its highest priorities.

Find out more about the WalletHub study here.