Point of Interest
Maryland is a wealthy state with excellent public schools, a historically low unemployment rate, and a great mortgage loan program for first-time buyers. Although there are significant taxes at closing, current prices are low, and buying a Maryland home is a good investment.
Use our mortgage calculator to find the right mortgage for your income.
|Term||Rate||Rate Last Week|
|30-year fixed jumbo||3.81%||3.93%|
If you’re looking to purchase a house in Maryland or refinance your existing mortgage loan, you’re in luck. The current mortgage rates Maryland homebuyers can secure are trending lower, making this an excellent time to tap into equity or finally become a homeowner. Although the median price of a house here is higher than the national average, the suburbs around Hagerstown, Baltimore, and Washington D.C. are thriving.
Getting a mortgage in Maryland
It’s relatively easy to find someone who will finance your mortgage loan or refinance your existing mortgage in the state of Maryland. There isn’t a lot of competition in the interest rate you will be offered from lender to lender, cutting down the need to comparison shop, and you have a lot of choices in the type of loan, including conventional, FHA and VA loans. The Maryland Mortgage Program makes homeownership more affordable for first-time buyers, offering competitive interest rates to people who meet their eligibility criteria.
It’s not all good news, though. Thanks to the transfer tax counties levy on the deed, the cost of closing on a Maryland mortgage is higher than in many states. Moreover, the median price of a home in Maryland is considerably higher than the median home price nationwide, which was $265,900 in the second quarter of 2020.
- Median home price: $305,500.
- Average 30-year fixed loan in Maryland: 3.89%.
- Median monthly mortgage cost: $1,987.
- Homeownership rate: 66.8%
Maryland mortgage rate trends
Maryland mortgage rates have been trending downward from a high in November 2018, when a 30-year fixed mortgage approached the 5.00% mark. Following a slight bump in January 2020, rates have continued to decrease steadily in reaction to cuts in the Federal rate and the recessionary climate brought on by the coronavirus.
Although there was initial volatility when the financial markets fell sharply in March 2020, mortgage rates nationwide have primarily stabilized and are now keeping pace with the Treasuries rate. Rates are expected to continue to be low and may reach historic levels.
Maryland current mortgage rates
In the last week of May 2020, the 30-year fixed mortgage rate in Maryland dropped to 3.23%. That is slightly above the national average mortgage rate of 3.04%. However, these rates are expected to continue to decline.
A 15-year fixed mortgage is currently 2.70%. You can get a 1-year adjustable-rate mortgage (ARM) for 2.68% and a 5/1 year ARM for 3.17%. Curious about what rate you can afford? Calculate your potential monthly payment using our mortgage calculator.
Most and least expensive places to live in Maryland
Maryland is a small state with a wide range. Residents can live in downtown Baltimore, suburbs of Washington D.C., on the beach or in the foothills of Appalachia. The shift from East Coast liberal to mainstream American conservative becomes apparent as one moves away from the cities.
Proximity to Washington D.C. and Baltimore is the single most significant factor in determining the cost of living in Maryland, with access to an excellent public school coming in second.
The 5 most expensive counties
- Howard County — This suburb of Baltimore has excellent public schools, diversity, employment opportunities, and nightlife.
- Montgomery County — High real estate prices, access to the nation’s capital, and excellent public school characterize this county.
- Frederick County — Located between the Potomac and the Blue Ridge Mountains, Frederick County is family-oriented, with excellent public schools.
- Anne Arundel County — There’s a high rate of homeownership, diversity, and nightlife in Anne Arundel County.
- Baltimore County — Diverse and happening, with excellent schools, this county is less expensive than Howard but has some of the same selling points.
The 5 least expensive counties
- Allegany County — Above average public schools, retirees, and lots of local parks and entertainment make this a desirable place to live.
- Garrett County — Garrett County has above-average public schools, a high percentage of homeowners, and lots of recreational opportunities. It is a good place for families.
- Somerset County — On the east coast of Maryland, Somerset County ranks high for diversity.
- Washington County — The suburbs of Hagerstown boast great public schools.
- Dorchester County — Two-thirds of the residents of this seaboard county own their own homes. A lot of young professionals make their home here.
Maryland mortgage resources and intricacies
Maryland offers special mortgage loan programs to first-time and other select buyers through its Department of Housing and Community Development. The Maryland Mortgage Program, its flagship program, is open to first-time homebuyers over 18 who have not owned residential property in the past three years and meet certain household income limits. Even people who are not first-time homebuyers may be eligible for the Maryland Mortgage Program if they purchase property within targeted areas.
Maryland has some of the most expensive recordation and transfer taxes in the United States, and this tax can add 2% to 3% to your closing costs, which, on average, run about 5% to 6% of the purchase price. Recent legislation has sought to mitigate some of that cost, raising the threshold to trigger taxability of IDOTs, or indemnity deeds of trust and exempting the transfer tax from commercial refinances.
Fortunately, refinances of primary residences have always been exempt from transfer taxes. Maryland refinance rates are favorable to allow homeowners to refinance their property to receive a better interest rate, and the state also lets homeowners “cash-out” the equity that has built up over time.
The final word
Current mortgage rates in Maryland have been trending downward as the dust settles on the financial panic that ensued when the coronavirus hit the United States. This is an excellent time to consider buying a new home or refinancing your existing loan to pay your loan down faster since both refinance and mortgage rates in Maryland are both incredibly low.