Montana variant. This is a Montana-specific version of the Refinance Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Refinance Calculator.
Refinancing a Montana mortgage makes sense when the monthly interest savings recover your closing costs before you sell or move. On the state's $470,000 median home, even a small rate drop moves real money.
When refinancing pays off in Montana
Closing costs typically run 2-5% of the loan balance. On a $376,000 loan (80% of the $470,000 median home), that's roughly $11,280 at 3%.
Your break-even point is closing costs ÷ monthly savings. Drop your rate enough to save $200/month and you'd recover $11,280 in about 56 months - refinance only if you'll stay past that point.
About taxes and housing in Montana
Montana levies a state income tax with a top marginal rate of roughly 5.9%, but it imposes no general statewide sales tax.
Montana property taxes are relatively low at an effective rate near 0.74%, with median home values around $470,000.
Montana's economy leans on agriculture, ranching, energy, and a growing tourism sector centered on its national parks and public lands.
Worked example: break-even in Montana
Loan $376,000, closing costs ≈ $11,280 (3%). If a refinance cuts your payment by $250/month, break-even ≈ 45 months. Use the calculator above with your actual rates and balance.
Quick reference
- State income tax: 4.7-5.9% across 2 brackets
- State sales tax: 0% (plus 0.00% avg local)
- Median home value: $470,000
- Median household income: $66,341
- Effective property tax rate: 0.74%
- Avg auto insurance: $1,471/yr
Frequently Asked Questions
Is it worth refinancing in Montana?
It depends on your break-even: closing costs divided by monthly savings. If you'll keep the home past break-even, refinancing usually pays off.
What are typical closing costs in Montana?
Refinance closing costs generally run 2-5% of the loan, or roughly $11,280 on a median Montana loan.