A Montana mortgage payment starts with the same formula as anywhere in the country, then picks up two costs that vary sharply by state: property tax at an effective 0.69% and homeowners insurance near $1,500 a year. On a typical Montana home of $465,000, those two add $393 to every monthly payment before the loan costs anything. The tool below is preloaded with that home, 10% down, and a 30-year fixed rate of 6.25%.
The Montana housing market at a glance
| Typical home valueZillow Home Value Index, statewide | $467,000 |
|---|---|
| Effective property tax rate$3,210 a year on the example home | 0.69% |
| Typical homeowners insurance$125 a month in escrow | $1,500 |
| Median household income$6,278 a month before tax | $75,340 |
| Example payment, share of median incomeAbove the 28% housing guideline | 50.1% |
Home values: Zillow, September 2026. Income, rent, and property tax: U.S. Census Bureau ACS, 2024. Insurance is an estimate. Sources · How every state compares
A Montana mortgage, line by line
| Home price | $465,000 |
|---|---|
| Down payment (10%) | $46,500 |
| Loan amount | $418,500 |
| Principal & interest at 6.25% | $2,577 |
| Property tax | $268 |
| Homeowners insurance | $125 |
| PMI at 0.5%Ends after 8 yrs 10 mo | $174 |
| Total monthly paymentHeadline result | $3,144 |
| Interest over 30 yearsHeadline result | $509,140 |
| Income for a 28% housing ratioMedian Montana household: $75,340 | $134,728 |
What changes the payment in Montana
Property taxes in Montana
With no sales tax, Montana leans on property tax; recent reforms reclassified second homes and commercial property upward while protecting the owner-occupied homestead rate. At the statewide effective rate of 0.69%, the example home pays $3,210 a year, $268 of every monthly payment. Local rates inside Montana vary well beyond the statewide figure, so take the number from the county assessor or the listing for any home you consider.
Homeowners insurance in Montana
Budget roughly $1,500 a year. Wildfire is the fast-growing cost in the Mountain West. Homes in the wildland-urban interface increasingly face non-renewals or sharply raised premiums even at moderate rebuild values. Lenders require coverage before closing, and the premium is collected monthly in escrow, so get a quote before you make an offer.
How far a Montana income goes
The median Montana household earns about $75,340 a year. Under a 28% housing limit that supports a payment of $1,758, $1,386 short of the example. The Montana edition of the home affordability calculator solves for the price that income supports.
How to estimate your Montana mortgage payment
- Replace the example price with the home you are considering. The property tax figure won't update by itself; recalculate it from the listing or the county's rate.
- Enter your real down payment. Under 20% on a conventional loan, PMI is added until the balance reaches 78% of the price.
- Use a rate from a current loan estimate rather than an advertised rate, which often assumes points paid up front.
- Replace the $1,500 insurance estimate with a quote for the specific address.
- Add HOA dues if the home has them, then try extra principal to see how much interest an early payoff saves.
Methodology
Principal and interest use the standard fixed-rate amortization formula, M = L × r ÷ (1 − (1 + r)^−n). Property tax is the statewide effective rate applied to the example price; insurance is a typical statewide premium. PMI is charged at the stated annual rate until the balance first reaches 78% of the original price, when the Homeowners Protection Act requires it to be cancelled.
Montana figures are sourced statewide values, listed under Sources: Zillow's typical home value and Census income, rent, and property tax data. Insurance is an estimate. They are not quotes or appraisals; substitute your own numbers for a decision.
Sources
- Typical home value: Zillow Home Value Index (all homes, mid tier, seasonally adjusted), September 2026.
- Median household income: U.S. Census Bureau, American Community Survey 1-year estimates, table B19013, 2024.
- Median gross rent: U.S. Census Bureau, American Community Survey 1-year estimates, table B25064, 2024.
- Effective property tax rate: Median real estate taxes paid (B25103) ÷ median home value (B25077), Census ACS 1-year, the Tax Foundation's method, 2024.
- Homeowners insurance: Keystone estimate of a typical annual premium. Replace it with a quote for the address, 2026.
Read the full methodology, worked example, and caveats in the national Mortgage Calculator guide.
Montana FAQ
- What is the average mortgage payment in Montana?
- On a typical Montana home of $465,000 with 10% down and a 30-year fixed rate of 6.25%, the full payment comes to about $3,144 a month: $2,577 of principal and interest, $393 of taxes and insurance, and $174 of PMI. Your payment depends on the price, rate, and local tax bill.
- How much are property taxes on a Montana mortgage?
- Montana's effective property tax rate is about 0.69%, which adds $268 a month to the payment on a $465,000 home. With no sales tax, Montana leans on property tax; recent reforms reclassified second homes and commercial property upward while protecting the owner-occupied homestead rate.
- How much income do I need to buy a home in Montana?
- To keep the example payment of $3,144 within the 28% housing guideline, a household needs about $134,728 a year of gross income, compared with a Montana median of $75,340. Other debts lower what a lender will approve.
- Does homeowners insurance raise my mortgage payment in Montana?
- Yes. Lenders collect it monthly in escrow alongside property tax. At a typical $1,500 a year, insurance adds $125 a month in Montana. Premiums vary by address and have risen quickly in many states, so quote it before you commit to a price.
Other state editions
Every state gets its own edition of the Mortgage Calculator, preloaded with that market's typical values, tax rates, and insurance costs: