Read This Before Buying a House in Montana

Montana. It is one of the largest states in the country and one of the most interesting housing markets in the United States. 

In 2021, the median value for a family home in Montana was nearly $375,000. 

If you are looking at buying a house in Montana, you may want to consider that. However, you may need to think about other things before buying a home in this state. 

What should you consider? Read on to find out more details. 

Houses Cost More 

If you are relocating from another state, be prepared for houses to be slightly more expensive in Montana than in the rest of the country. You saw the median home value above but what you may not know is that Montana is ranked 15th in the United States in that category. 

The majority of states ahead of Montana on this list either come from the west coast or the northeast. What this means is that unless you are coming from one of those areas, prepare to spend more money on a home in Montana than you would in your own state. 

Some people may be fine with this and enjoy the other benefits of this state, while others may consider it a deal breaker. Nevertheless, just keep this in mind. 

Fewer Neighbors 

One thing you may have to get used to in Montana is the fact that you are less likely to have neighbors live right next to you than in other states. 

Why is this? Because Montana is ranked 48th in the country when it comes to population density. This means that only two states average fewer people per square mile than Montana does. 

So, depending on what part of Montana you buy a house in, you could end up being somewhat isolated from the rest of society. This can be a good or a bad thing, depending on what type of person you are. 

Some may see it as a good thing that Montana gives you more opportunities to live with just you and the land. Others may see it as lonely and also a burden when it comes to access to resources and conveniences. 

This is because when you live that much farther away from other people, you are likely going to have to take longer trips in town to get resources. These can be things such as going to the grocery store, visiting a doctor, going to your bank, and more. 

Think about how important it is to have your own space versus being farther away from resources before you buy a home in this state. 

Property Taxes 

Something else that you should be aware of in Montana is what the property taxes are. Luckily, the property taxes you pay in this state are not nearly as bad as in some other states. 

It is in the middle of the pack at about .84%. Still, this is only about one-third of the highest property tax states in the country, which can be over 2.4%. 

Property taxes go by what your house is valued at during any given year. So, let’s say that the house you own in Montana is worth $370,000. This means that you would owe $3,108 in property taxes for that year. 

It is an expense that you are going to incur every year so make sure that you can afford the likely property taxes that go along with your home. 

Understand Mortgage Options 

Next, you are going to need to consider what your mortgage options are. For example, if you are a veteran, you can qualify for a VA loan. That can be a big advantage for those that lack capital because you could buy a home with 0% down with this loan. 

Then, there is a conventional loan that lets you buy a house with as little as 3.5% down. Keep in mind with this option that you have to have a certain credit score to qualify for certain down payments. 

Regardless, you do have multiple types of mortgages that you can go with. This includes choosing ones with a fixed rate or ones that vary. Do you want to pay your mortgage for 15 years or for 30 years? 

Have an idea of what type of mortgage you are trying to get before buying a house here. 

Consider Mortgage Payments 

Finally, consider the mortgage payments that you will have to make with each option. At the time of writing, mortgage rates are not getting any cheaper for prospective buyers. 

This means that you are going to be paying more interest than in years past. On top of this, that number could be even higher if you take longer to pay your mortgage off. 

For this reason, you have to make sure that you can afford the mortgage payments that you may have to make every month. What percentage of your monthly income does it take up? Is it sustainable? Do you expect to get a raise in income soon? 

Consider all of this before buying a home. 

Get Help Buying a House 

These are some of the things that you should think about when buying a house in Montana. There is less population density in this state and the property tax rate is reasonable here. 

However, you need to be aware that houses cost more here than in most states. So, make sure you pick out the right mortgage for you to afford payments monthly. 

Do you need help buying a home? Message us today with your questions.