Overview of Maryland Mortgages
Though small in size, Maryland has played a sizable role in U.S. history. Maryland was one of the original 13 colonies and the site of the Battle of Antietam. Maryland mortgage rates have traditionally stuck close to the national average. Its counties’ conforming loan limits and FHA limits show significant variation, some reaching into the $600,000s.
National Mortgage Rates
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Maryland Mortgage Rates Quick Facts
Historical Mortgage Rates in Maryland
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 is rich in culture and natural beauty. Maryland mortgage rates are typically even with the national average. The 2016 Maryland mortgage rates are continuing to follow that trend.
Maryland Historic Mortgage Rates
|Year||Maryland Rate||U.S. Rate|
Maryland Mortgages Overview
Property in Maryland is pricier than the nation’s average. The average home sale price is $290,250, which is above the nation’s average of $236,450, according to Zillow.
Maryland Mortgage Rates
|Percentage of Homes||78.50%|
|Average Property Value||$241,244.86|
|Percentage of Homes||10.80%|
|Average Property Value||$175,490.81|
|Percentage of Homes||4.10%|
|Average Property Value||$147,910.43|
|Percentage of Homes||6.50%|
|Average Property Value||$169,710.58|
The high real estate prices are reflected in the higher than average conforming limit in many Maryland counties. For most of the country, the conforming loan limit is $417,000. If you take out a loan larger than that it will be considered a “jumbo loan” and will have higher interest. In some more expensive areas, the conforming limit is higher than $417,000 as an acknowledgment of the higher-than-average home prices. 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 $517,500. Those counties are Anne Arundel, Baltimore, Baltimore City, Carroll, Harford, Howard and Queen Anne’s. In five Maryland counties the conforming limit is a whopping $625,500. 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, bouncing from $271,050 to $625,500 across the state.
Conforming and FHA Loan Limits by County
|County||Conforming Limit||FHA Limit|
In Maryland, whether a seller works through an agent or goes the “For Sale by Owner” route, the 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
Do you need 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 mortgage rate for fixed-rate 30-year mortgages is 4.12%.
Maryland Jumbo Loan Rates
Maryland loan limits vary widely, with many of the state’s counties going well above the typical $417,000 conforming loan limit. This reflects the more expensive real estate prices throughout Maryland. As previously mentioned, the conforming limit in some Maryland counties is $517,500 and in others it’s $625,500. 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 3.96%.
Maryland ARM Loan Rates
An ARM (or adjustable-rate mortgage) is exactly what its name implies. It is a home loan that has an interest rate that changes over time. Usually an ARM will have a lower interest rate upfront as 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 and it typically goes up. It is especially crucial to make sure 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 an ARM in Maryland is 3.38%.
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||Website|
|Maryland Mortgage Program||Down payment assistance and partner match program.||First-time homebuyers.||http://mmp.maryland.gov/Pages/Downpayment.aspx|
|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.||http://www.rd.usda.gov/programs-services/all-programs/single-family-housing-programs|
|Home Affordable Refinance Program||Refinancing.||Single family homes and condos that fit within lending loan limits.||http://www.harp.gov/|
Rural communities in Maryland are eligible for a program offered by the United States Department of Agriculture Rural Development. Through the program, residents in rural areas can obtain loans and grants to help them buy a home or repair their current home. Check at the start of your home search to see if you qualify for the USDA rural development offers.
Maryland Mortgage Taxes
Keep in mind that Maryland 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. Discuss this tax with your lawyer or accountant before buying. In Maryland transactions, 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. So if you are deciding whether itemized deductions are the best fit for you or not, this is an important factor to consider.
Maryland Mortgage Refinance
Old Line State homeowners who want to refinance can look into the Home Affordable Refinance Program of Maryland, which offers low closing costs as well as interest and principal payment reductions.
See Mortgage Rates in These Other States
Best Places To Get A Mortgage
SmartAsset’s interactive mortgage map highlights the best counties in the country (and in each state) for securing a mortgage. Hover over counties and states to see data points for each region, or use the map’s tabs to view the top counties for each of the factors driving our analysis.
Methodology For many people buying a house means securing a mortgage. To determine the best places in the country to get a mortgage we looked at four factors: overall borrowing costs, ease of securing a mortgage, cheap property taxes and cheap annual mortgage payments.
To calculate the overall borrowing costs, we looked at the expected costs over the first five years of 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 actual mortgage originations (secured mortgages) in each county. We based annual mortgage payments on 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, and then averaged those rankings, 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 2015 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset