Overview of Maryland Mortgages
Though small in size, Maryland has played a large role in U.S. history. As one of the 13 original colonies, its towns have American charm and historical trappings that add appeal on the real estate market. Maryland mortgage rates have traditionally been just above the national average. The state’s counties’ conforming loan limits and FHA limits show significant variation. The highest limits are in counties close to Washington D.C.
|30 year fixed||4.53%||4.63%||-0.09|
|15 year fixed||4.00%||4.08%||-0.08|
|30 yr fixed mtg refi||4.56%||4.67%||-0.10|
|15 yr fixed mtg refi||4.00%||4.08%||-0.08|
|7/1 ARM refi||3.75%||3.75%||0.00|
|15 yr jumbo fixed mtg refi||4.00%||4.00%||0.00|
National Mortgage Rates
Historical Mortgage Rates in Maryland
Maryland Mortgage Rates Quick Facts
- Median Home Value: $296,500 (U.S. Census Bureau)
- Loan Funding Rate: 47.9% (CFPB)
- Average Mortgage Rate: 4.66% (FHFA)
- Homeownership Rate: 66.6% (St. Louis Fed)
- Median Monthly Homeownership Costs: $1,987 (U.S. Census Bureau)
Well-known for its Chesapeake Bay and Atlantic coastlines, Maryland is a hub for sailing, U.S. history and blue crabs, a state specialty. From historic Baltimore to the mountain views of Frederick, Maryland, it's rich in culture and natural beauty and a great place to own a home. Maryland mortgage rates are typically a little above national averages.
A financial advisor in Maryland can help you plan for the homebuying process. Financial advisors can also help with investing and financial plans, including tax, retirement and estate planning, to make sure you are preparing for the future.
Maryland Historic Mortgage Rates
|Year||Maryland Rate||U.S. Rate|
Maryland Mortgages Overview
Property in Maryland is right on par with the national average. The median home sale price is $237,000, which is the same as the nation’s median, according to Zillow data.
The average real estate prices are reflected in the average conforming limit in many Maryland counties. For most of the country, the conforming loan limit is $510,400. That means if you take out a loan larger than that, it will be considered a jumbo loan and will therefore have a higher interest rate.
In some more expensive areas, however, the conforming limit is higher, as an acknowledgment of the higher-than-average home prices there. In those areas, you have a little more leeway to take out a bigger loan before it will be considered a jumbo loan.
Seven Maryland counties have conforming limits of $520,950. Those counties are Anne Arundel, Baltimore, Baltimore City (not technically a county), Carroll, Harford, Howard and Queen Anne’s. In five Maryland counties, the conforming limit is a whopping $765,600. Those counties are Calvert, Charles, Frederick, Montgomery and Prince George’s. Expect high real estate prices in these areas.
The FHA limits for Maryland counties vary widely, ranging from $331,760 to $765,600 across the state.
Maryland Conforming and FHA Loan Limits by County
|County||Conforming Limit||FHA Limit|
Maryland homebuyers do have some protections. Whether a seller works through an agent or goes the "for sale by owner" route, disclosure laws apply. Most sellers will be required to fill out either a disclosure or a disclaimer. Regardless, a home inspection is still the best way to feel confident in a property purchase.
30-Year Fixed Mortgage Rates in Maryland
Applying for a mortgage in the Old Line State? Fixed-year mortgages are reliable choices, especially for buyers who plan to stay in their new homes for a long time. With fixed-rate mortgages, your interest rate remains the same for the duration of the loan, so you know exactly how much your monthly payment will be.
A 30-year fixed-rate mortgage is the most popular home loan. You can have a long time to pay off the loan (30 years), unless you made prepayments or decide to refinance. Fixed-rate mortgages are also available in 15-year and 40-year terms.
The average Maryland rate for a fixed 30-year mortgage is 3.64%.
Maryland Jumbo Loan Rates
Maryland loan limits vary widely, with many of the state’s counties going well above the conforming loan limit. This reflects the more expensive real estate prices throughout Maryland. As previously mentioned, the conforming limit in some Maryland counties is $510,400 and in others it’s $765,600. If you need to take out a home loan that is larger than the conforming limit in the county in which you’re looking to buy, you will have what is known as a jumbo loan. Keep in mind that jumbo loans come with higher interest rates.
The average jumbo loan rate in Maryland is 3.86%.
Maryland ARM Loan Rates
An ARM, or adjustable-rate mortgage, is exactly what its name implies. It’s a home loan that has an interest rate that changes over time. Usually an ARM will have a lower interest rate upfront compared to a fixed-rate mortgage. This lower rate lasts for a certain period of time between one and 10 years. When that time is up, the interest rate can change once a year. Typically, the rate will increase. It’s crucial that you understand the terms of an ARM from the get-go, as that will specify how often the rate can change and how high it can reach.
The average rate for a 5/1 ARM in Maryland is 3.52%.
Maryland Mortgage Resources
Do you need assistance with the homebuying process in Maryland? There are resources out there to help you in your mortgage process.
The Department of Housing and Community Development Maryland Mortgage Program offers down payment assistance and partner matching. This program provides funding via zero-interest deferred loans, forgivable loans or outright cash grants for down payments, closing costs and prepaid/escrow expenses. There are also classes through this program that help buyers make the right decisions when they’re buying a home.
|Resource||Problem or Issue||Who Qualifies|
|Maryland Mortgage Program||Down payment assistance and partner match program.||First-time homebuyers.|
|USDA Rural Development - Single family loans||Offers payment assistance to increase an applicant’s repayment ability.||Applicants must be without decent, safe and sanitary housing; Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet; Agree to occupy the property as your primary residence; Have the legal capacity to incur a loan obligation; Meet citizenship or eligible noncitizen requirements; Not be suspended or debarred from participation in federal programs.|
Rural homebuyers in Maryland are eligible for a program offered by the United States Department of Agriculture Rural Development. The program provides loans and grants to buy a home or repair a current home located in select rural areas. If you’re interested, check with the USDA to see if you qualify. Income restrictions apply.
Maryland Mortgage Taxes
Maryland is one of the states that charges transfer taxes on real estate transactions. Deed taxes are 0.25% for first-time buyers and 0.5% for repeat buyers. County transfer taxes and recordation taxes vary by county. In Maryland, the seller pays this fee for first-time homebuyers. Otherwise the fee can be negotiated among the parties.
Maryland is one of the states where homeowners are allowed to deduct the mortgage interest they pay from their taxable income on both federal income taxes and state income taxes. This might be an important factor to consider if you’re deciding whether to itemize deductions.
Maryland Mortgage Refinance
Old Line State homeowners who want to refinance can no longer look to The Home Affordable Refinance Program (HARP) as an option for refinancing, as it ceased to exist at the end of 2018. It may be worth looking into an alternative: the High Loan-to-Value Refinance Option from Fannie Mae.
Best Places To Get A Mortgage
SmartAsset’s interactive map highlights the best counties in the U.S. (and in each state) for securing a home mortgage. Hover over states and counties to see rankings and data points for each region, or use the map’s tabs to view the top counties for each of the factors included in our analysis.
Methodology In order to determine the best places in the country to get a mortgage, our study compared four factors, including overall borrowing costs, likelihood of securing a mortgage, property taxes and annual mortgage payments.
To calculate the overall borrowing costs, we analyzed the expected costs throughout the first five years for a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to mortgage originations (secured mortgages) in each county. Annual mortgage payments are a measure of the annual principal and interest payments for a $200,000 loan in that location using average mortgage rates in each county.
Finally, we ranked locations based on these four factors, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.
Sources: Mortgage Bankers Association, US Census Bureau 2018 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset