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HELOCs in Montana: how much you can borrow and the state rules that apply

Own a home in Montana and want cash without giving up the rate on your current mortgage? A home equity line of credit can do that, and Montana homes carry a lot of value: the median is $425,400. Montana has no special HELOC borrowing cap, but a state law on future advances fits a credit line well. Here is what that means for you.

Median value of an owner-occupied Montana home
$425,400
Montana homeowners with no mortgage at all
45.9%
For a lender to release your paid-off lien after you ask
90 days
Minimum from a recorded notice of sale to a trustee's sale
120 days

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HELOC rates in Montana right now

Most HELOCs have a variable rate based on the prime rate plus a margin set by the lender. Your margin depends mostly on your credit and how much of your home's value you borrow.

In 2025, the median HELOC in Montana opened at 7.75%, and half opened between 7.25% and 8.50%, across 2,440 lines reported under federal HMDA data. The national median was 7.50%. Leaving out lines with a 3 to 12 month introductory rate, the Montana median was 7.95%. Home equity loans in Montana, which usually have a fixed rate, closed at a median of 8.49%. HELOC rates in every state.

Prime rate, unchanged since September 17, 2026 (Federal Reserve)
7.00%
Median Montana HELOC rate at opening, 2025 (HMDA)
7.75%
Average 30-year fixed mortgage rate, week of October 29, 2026 (Freddie Mac)
7.24%

The Federal Reserve raised rates on September 16, 2026, which moved prime to 7.00%. Its October 27 and 28 meeting is more recent than the prime rate data shown here, which runs through October 27, 2026. Its next meeting is December 8 and 9. With 30-year mortgage rates above 7%, a HELOC lets you borrow against your equity without refinancing a lower rate you already have.

How much can you borrow in Montana?

Montana law doesn't set a home equity borrowing cap. Each lender sets its own limit on all the loans on your home combined, your current mortgage plus the new line.

Montana homes are valued well above the national median, $425,400 against $360,600, and 45.9% of owners have no mortgage at all.

Home value ×80% −what you owe now =a likely maximum line

Example
Home value (the Montana median for owner-occupied homes)
$425,400
80% of value (a common lender limit, not a Montana law)
$340,320
Current mortgage balance
$230,000
Maximum line of credit
$110,320

Example only. Lenders set their own limits and the final amount after an appraisal, and many approve less than the maximum based on credit and income.

Run your own numbers in our home equity calculator

Montana home prices more than doubled from 2014 to 2025

Montana House Price Index by year, 2014 to 2025Column chart. The index rises from 320.3 in 2014 to 730.2 in 2025, with the largest yearly gains in 2021 and 2022.0200400600800Index (1991 = 100)2014: index 320.3020143202015: index 332.81, up 3.9% from 20142016: index 347.38, up 4.4% from 20152017: index 366.40, up 5.5% from 201620172018: index 386.76, up 5.6% from 20172019: index 407.42, up 5.3% from 20182020: index 450.84, up 10.7% from 201920202021: index 551.73, up 22.4% from 2020+22.4%2022: index 648.32, up 17.5% from 2021+17.5%2023: index 676.65, up 4.4% from 202220232024: index 715.78, up 5.8% from 20232025: index 730.19, up 2.0% from 20242025730 Montana House Price Index by year, 2014 to 2025Column chart. The index rises from 320.3 in 2014 to 730.2 in 2025, with the largest yearly gains in 2021 and 2022.0200400600800Index (1991 = 100)2014: index 320.3020143202015: index 332.81, up 3.9% from 201420152016: index 347.38, up 4.4% from 201520162017: index 366.40, up 5.5% from 201620172018: index 386.76, up 5.6% from 201720182019: index 407.42, up 5.3% from 201820192020: index 450.84, up 10.7% from 201920202021: index 551.73, up 22.4% from 20202021+22.4%2022: index 648.32, up 17.5% from 20212022+17.5%2023: index 676.65, up 4.4% from 202220232024: index 715.78, up 5.8% from 202320242025: index 730.19, up 2.0% from 20242025730

On the FHFA House Price Index, Montana home prices rose 128.0% from 2014 to 2025 and went up every single year, with the biggest jumps in 2021 (+22.4%) and 2022 (+17.5%). Growth has been slower since: up 2.0% in 2025 and 2.78% in the year to mid-2026, 25th of the 50 states and DC.

Source: FHFA House Price Index, Montana, purchase-only, through 2026 Q2.

Chart data as a table
Montana House Price Index, annual average (1991 = 100)
YearIndex (1991 = 100)
2014320.30
2015332.81
2016347.38
2017366.40
2018386.76
2019407.42
2020450.84
2021551.73
2022648.32
2023676.65
2024715.78
2025730.19

The Montana rules that affect a HELOC, in plain English

Montana has no special HELOC limits like a borrowing cap or a waiting period. These Montana laws (the Montana Code Annotated) still shape your HELOC.

Your line of credit

The mortgage states the maximum.
A mortgage that secures future advances must state the most that can be owed at any one time. Your balance can rise and fall, and the lien keeps its priority even when you owe nothing.
You can ask for a statement.
On your demand, the lender must give you a statement of all advances and the principal you have paid.
You can stop further draws.
Send the lender a signed, acknowledged notice that you want no further advances, and record it in the county. From then on the lien only covers what you already owe, plus interest and charges.
You can ask for a release at a zero balance.
Montana law keeps your right to demand that the mortgage be satisfied any time the balance is zero.
The lien must come off within 90 days.
Once the debt is paid and you ask, the lender must release the mortgage within 90 days, or the trustee must reconvey a trust indenture. Missing that deadline can cost the lender $500 plus your actual damages.

Spouses and homestead

A recorded homestead needs both signatures.
If you are married and have recorded a declaration of homestead, the home can't be mortgaged unless both spouses sign and acknowledge the document.
Homestead protection doesn't cover a HELOC.
Montana's homestead exemption shields part of your home's value from some creditors, but not from a mortgage you and your spouse signed.

Costs and licensing

Recording the mortgage.
The county clerk and recorder charges $20 for the first page and $10 for each additional page.
Use a licensed lender.
Mortgage lenders, brokers, servicers and loan originators must be licensed or registered through the national NMLS system. Banks and other depository institutions are exempt from the license, and their loan originators register instead.

If you can't pay

Trust indentures can be sold without a court case.
If your line is secured by a trust indenture, which Montana allows on property of 40 acres or less, the trustee can sell the home at a public auction after notice.
At least 120 days of notice.
The sale must be at least 120 days after the notice of sale is recorded, and you get a copy by certified mail at least 120 days ahead. The notice is also posted on the home and published for 3 weeks.
You can catch up before the sale.
Any time before the sale you can pay the past-due amount plus costs and reasonable fees, and the loan is reinstated as if nothing happened.
No shortfall suit after a trustee sale.
If the trustee's sale doesn't cover the debt, the lender can't get a judgment against you for the rest. There is also no right to buy the home back afterward.
Court foreclosure is different.
If the lender forecloses a mortgage through a court instead, it can get a judgment for any shortfall, and you have 1 year after the sale to redeem the home.

Property tax basics

A lower rate for your primary home.
From tax year 2026, a primary residence that qualifies for the homestead reduced rate has its taxable value figured at 0.76% of market value up to the state median of $378,000, with higher rates above that, against 1.9% for homes that don't qualify. Local levies then apply to that taxable value.
You have to apply.
Apply with the Montana Department of Revenue between December 1 and March 1. Owners who got the 2024 property tax rebate qualify automatically.
Revalued every 2 years.
Montana homes are reappraised every 2 years.

Montana homeowners by the numbers

Median value of an owner-occupied Montana home
$425,400
U.S.: $360,600
Montana homeowners with no mortgage at all
45.9%
U.S.: 40.3%
Montana households that own their home
68.6%
U.S.: 65.3%
Median yearly property tax paid in Montana
$2,939
U.S.: $3,211

Source: U.S. Census Bureau, American Community Survey 2024 1-year estimates.

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Frequently asked questions

Can I stop further draws on my Montana HELOC?

Yes. Montana law lets you give the lender a signed, acknowledged notice that you want no further advances and record it in the county. The lien then covers only what you already owe, plus interest and charges.

How fast must a Montana lender release my HELOC lien?

Within 90 days after you ask once the debt is paid. A lender or trustee that misses that deadline can owe you $500 plus your actual damages.

Does my spouse have to sign my Montana HELOC?

If you are married and have recorded a declaration of homestead, yes: Montana law says the homestead can't be mortgaged unless both spouses sign and acknowledge it. Lenders may also set their own signing rules.

Can a Montana lender sue me for a shortfall after foreclosure?

Not after a trustee's sale under a trust indenture; Montana law bars a deficiency judgment then. After a court foreclosure of a mortgage, the lender can get a judgment for the balance.

How long does foreclosure take in Montana?

A trustee's sale can't happen until at least 120 days after the notice of sale is recorded, and you can catch up and reinstate the loan any time before the sale.

How much have Montana home prices risen?

On the FHFA House Price Index, Montana prices rose 2.78% in the year to mid-2026, 25th of the 50 states and DC, and 40.6% over 5 years. From 2014 to 2025 they rose 128.0%.

Does checking my options with LenderMatch affect my credit?

No. LenderMatch never pulls your credit. A lender you choose to work with may check it, with your permission.

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Sources

  • Montana Code Annotated 71-1-206, future advances (leg.mt.gov)
  • Montana Code Annotated 71-1-211, 71-1-212 and 71-1-307, releasing a mortgage or trust indenture
  • Montana Code Annotated 71-1-304 to 71-1-317, Small Tract Financing Act
  • Montana Code Annotated 71-1-222, 71-1-228 and 25-13-802, foreclosure and redemption
  • Montana Code Annotated 70-32-105, 70-32-202 and 70-32-301, homestead
  • Montana Code Annotated 32-9-102 to 32-9-104, Montana Mortgage Act; 7-4-2632, recording fees
  • Montana Code Annotated 15-6-134, 15-6-405 and 15-7-111, property tax; Montana Legislative Fiscal Division, Property Tax 201 (June 2026)
  • FHFA House Price Index, state data through 2026 Q2
  • U.S. Census Bureau, American Community Survey 2024
  • Federal Reserve H.15 release, October 27, 2026
  • Freddie Mac Primary Mortgage Market Survey, October 29, 2026
  • Federal Financial Institutions Examination Council, Home Mortgage Disclosure Act data, 2025 (HELOC and home equity loan rates at opening, LenderMatch analysis)

Last reviewed October 22, 2026. General information, not legal advice. LenderMatch is not a lender and makes no loans.