Maryland Mortgage

Maryland has many mortgage programs to select from when looking for home financing. Because of its relatively small size and dense population, Maryland has a very competitive housing and mortgage market. The most popular mortgages are:

  • 30 or 15 year fixed rate mortgage
  • 3/1 or 5/1 Adjustable rate mortgage program
  • Jumbo loans for homes over $417,000
  • USDA rural mortgage program
  • FHA and VA backed mortgages
  • Two-Step mortgages. This program is similar to an adjustable rate mortgage. With this product low interest rates are paid during the “first step” for about 7 years and than higher rates during the “second step”.
  • Graduated Payment Loan. This type of loan steadily increases the monthly payment amount over a specific period of time
  • Buy Down Loan. This loan allows the lender or the builder to pay a portion of the interest on the loan for a specific period of time at the beginning of the mortgage


Maryland Mortgage Rates

Mortgage rates in Maryland are about the same as the national average with the tendency to be a bit higher. Interest rates will depend on the area of purchase as well as the qualifications of the buyer. Type of loan program and type of institution issuing the loan can also affect the mortgage rates. Borrowers will be subject to credit and employment review as well as verifying other financial data. Loan to value ratio, cost of the property and other considerations will all be used to determine final interest rate.

Maryland Refinance Rates

Maryland has comparable refinance rates to that of other states in the area. In addition to refinancing with either a cash option or a non cash option, Maryland also offers a Wrap Around loan as part of refinancing. The Wrap Around loan is where the bank issues a second mortgage on the property that envelope the first. The interest rate is determined by the average of the two loan rates. So, if the initial rate was 10% and the Wrap around loan is 5% your interest will sit at 7.5% on the loan. As with any type of mortgage product, income and credit verifications will be required.

Maryland Mortgage Brokers And Lenders

Maryland has a large market of lenders to select from when searching for a mortgage. Private companies offering financing, banks and credit unions are all authorized to grant mortgages in the state. Borrowers who wish to utilize the internet for a mortgage are open to do so if the lender complies with Maryland law.