Mortgage and Refinance Rates in Maryland

Today's Rates In Maryland

Thinking of buying a home in Maryland? Refinancing a home loan? Maybe getting a home equity loan or line of credit? Then you'll want to know about Maryland mortgage rates and how to find the best rate for someone in your situation.

Today's Maryland mortgage rates for some of the most popular loan types are listed at the top of the page. But just as current mortgage rates can vary from day to day, individual mortgage interest rates can vary from borrower to borrower – even from the same lender for the same type of loan. That's because the rate you get depends not only on what current rates are, but also your profile as a borrower – your credit score and down payment can affect your rate, as well as the size of your loan and your loan type, among other factors.

Regardless of the type of home loan you're looking for – a purchase, refinance or home equity loan – you can use the forms at the top and bottom of this page to get current Maryland mortgage rate quotes tailored specifically for you, based on your borrower profile, from mortgage lenders doing business in your state. There's no obligation or charge, so give it a try.

About Maryland mortgage rates

Many people assume that finding the best mortgage rates is just about comparing what lenders are offering. That's part of it, but you also have to find the right type of home loan for you and your situation. The rates and fees on a conventional mortgage are structured differently from those on a Maryland FHA loan, and may be best suited to different types of borrowers.

Similarly, borrowers will find that Maryland home equity loan rates and HELOC rates are very different from each other, not only in raw numbers but how the loans work – they're two quite different creatures, for borrowers with different needs.

So what sort of loan do you need? Here's a look at some of the more common types of Maryland home loans.

Conventional loans

This is the term generally used to describe mortgages that are backed by Fannie Mae or Freddie Mac, which are available through most lenders and are the most common type of U.S. mortgages. These offer attractive Maryland mortgage rates to borrowers with good to excellent credit, though borrowers with lower credit scores may find them a good choice as well.

Down payments can be as small as 3 percent of the loan amount, though you'll find you'll get a better mortgage rate with a larger down payment. Private mortgage insurance (PMI) is required on any loan where you put less than 20 percent down, though it can be canceled once you reach 20 percent equity.

FHA loans

Maryland FHA loan requirements are less stringent than those for conventional loans. Many FHA lenders will approve borrowers with credit scores as low as 600 and some will go even lower than that. Borrowers with weaker credit scores may also find they can get better rates on a Maryland FHA loan than they can on a conventional mortgage. Down payments can be as little as 3.5 percent. It’s not surprising, then, that FHA loans are a popular option for Maryland borrowers who are first-time homebuyers or have weaker credit.

FHA loans do charge an upfront fee for mortgage insurance equal to 1.75 percent of the loan amount (as of 2018), but that is often outweighed by the lower rates available to borrowers with weaker credit and lower down payments. Borrowers who put down less than 20 percent also have to pay a monthly mortgage insurance premium, similar to PMI on a conventional loan. Borrowers who put down less than 10 percent must carry this insurance for the life of the loan, though it can be eliminated by refinancing when one reaches 20 percent equity.

Refinancing a mortgage

Any mortgage than can be used to buy a home can also be used to refinance one. So you can use a conventional or FHA loan, a VA loan if you're eligible, or any other type of home purchase mortgage.

When you refinance a mortgage in Maryland, all you're doing is replacing the old mortgage with a new one, one that presumably has better rates or some other advantage the current one lacks. You don't have to go through the same lender; the new mortgage simply pays off the old one and from then on you make your payments to your new lender.

Mortgage refinance rates in Maryland are little different from those for buying a home – there's not much difference between the two from a lender's perspective. The big difference is that your home equity replaces the down payment as the money you bring to the table, and since most people have gained equity since they first bought the home, they can often qualify for a better rate that way. Borrowers who refinance often opt for a shorter loan as well, which can get them a better rate – 15-year mortgage rates are often half a percentage point or more lower than the equivalent 30-year Maryland mortgage rates.

Adjustable mortgage rates

Often, when applying for a home loan, you have a choice of two different types of rates: Fixed rates, which are unchanged for the duration of the loan, and adjustable rates, which vary over time with market conditions.

Fixed-rate mortgages offer predictability, but are priced higher than comparable adjustable-rate mortgages (ARMs). You get a lower initial rate on ARMs, but there's a risk the rate could rise over the life of the loan if current mortgage rates increase (thought it could also decline).

For home loans, ARMs are often hybrid loans, starting out with a fixed-rate for a certain number of years before they start to adjust. The initial rate may be fixed for the first five or seven years, for example, then adjust every year after that. This is why these loans are described with names like 5/1 or 7/1 ARMs – the first number is how long the rate is fixed, the second is how often it adjusts after that. Hybrid ARMs are often a good choice for people who expect to move or refinance within a certain number of years – there's no need to lock in a 30-year mortgage rate if you only plan to own the home for seven years.

Home equity loans

Home equity loans are a special type of mortgage that allow you to borrow against the value of your home to raise cash. They come in two main types: standard home equity loans and home equity lines of credit (HELOCs).

With a standard home equity loan, you borrow a sum of money and begin repaying it almost immediately. With a HELOC, you get a line of credit you can draw against as you wish for a certain length of time, often 5-10 years. HELOCs are often interest-only loans during the draw period, though you can repay loan principle during that time if you wish.

Standard home equity loan rates for Maryland borrowers are usually fixed, though you can get them as adjustable-rate loans as well. Maryland HELOC rates are always adjustable during the draw period, though you can often convert them to a fixed-rate once the draw is over and you need to repay what you've borrowed.