Montana is an amazing state. It is home to wildlife, mountains, prairies, lakes, rivers, and the "Big Sky". Living in Montana isn't always easy. We have to deal with weather, travel, wildlife and more. It also isn't easy to live in Montana because it is expensive. The cost of living in Montana is higher than you may think. Being able to afford a house in Montana is not an easy feat. Being able to afford a house in Missoula is even more difficult.

Missoula House Buying Numbers

I spoke with Matt Gehr from Mann Mortgage about purchasing a home in Missoula. One of the main factors that lenders consider when issuing a loan is the percentage of "mortgage debt to income ratio". Matt helped me with the figures. According to Fannie Mae, Missoula's median income is $80,200. According to Missoula Real Estate, the 2022 Median Sales Price for a home in Missoula was $519,900. Here are the figures that Matt helped me work through.

If someone were to purchase a $520,000 house with 5% down ($494,000 loan amount) with a 7% rate and mortgage insurance that assumes good credit, you could be looking at a monthly payment north of $4,000 once you factor in the insurance, taxes, and mortgage insurance.

$80,200 annual income comes out to $6,683.33 per month. Assuming ZERO other debt, a $4,000 mortgage payment would put debt ratio, per our standards, at roughly 60%.

Your Numbers May Vary

This is just a example of what purchasing a house in Missoula may take. The numbers can always change. Incomes change, a bigger down payment can happen. Interest rates can change. There are a lot of variables involved. In the conversations I have had with people who have purchased a home over the past couple years, there is one word that continues to be mentioned and that word is "luck"

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As with any renovation project, we ran into a few mishaps when we began renovating the 1952 ranch-style home we bought in Missoula, but some of the changes we made were easy and immediately rewarding.

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