Maryland Mortgage Calculator

Best mortgage lenders in Maryland

The most popular mortgage lenders in Maryland operate nationwide. These include such recognizable names as Gateway Capital Mortgage, AmeriSave, Rocket Mortgage. Several lesser known but trustworthy options include Maryland-based Federal Hill Mortgage Company LLC, NFM Lending®.

How to calculate mortgage payment in Maryland

Use our simple mortgage calculator MD to assess your upcoming monthly financial commitments. Follow the detailed step-by-step instructions provided below.

Why and How to Use Our Mortgage Calculator

Use our house payment calculator Maryland for thorough planning of your future spendings. Let’s take a closer look at each field in order to gain a better understanding of the mortgage in Maryland parameters.

The initial piece of the puzzle pertains to the home price — specifically, the amount you intend to invest in your prospective property. A down payment represents the upfront portion of this price. To avoid costly insurance expenses, it is essential to provide a minimum of 20% down payment, particularly in the case of a conventional loan. The remaining amount constitutes the principal, equating to 80% of the home price when a 20% down payment is made.

The loan term denotes the period required for complete mortgage repayment through scheduled payments. Fixed-rate conforming loans typically have a maximum duration of 30 years, whereas adjustable-rate options often come with shorter terms.

The interest rate signifies a fixed or variable fraction of the principal that you must pay over the loan's duration. It's important to note that you are actually assessed an annual percentage rate (commonly abbreviated as APR), which is not precisely the same as the interest rate. While the interest rate forms the majority of the APR value, the latter also encompasses various fees, such as origination fees, closing costs, and insurance payments, among others.

For a more accurate assessment, the interest rate utilized for these calculations is based on the current mortgage rates in Maryland, considering a $400,000 home price and a 10% down payment.

Median property taxes in Maryland counties

Property taxes are another important consideration when selecting your future house. Many lenders insist on setting up a mortgage escrow account to ensure the borrower keeps up with tax and insurance costs.

Source: American Communities Survey 2016, U.S. Census

Maryland Housing Market 2024

The previous year witnessed a significant rise in the housing market's value in Maryland. This upturn continues a longstanding trend that was accentuated by the COVID pandemic. However, the rate of growth has slowed compared to the previous year, even as both purchase and refinance rates have been steadily climbing for a while and are anticipated to increase further in the near future.

How do I calculate my mortgage payment?

The most convenient method for accomplishing this is to utilize our calculator, which operates based on a straightforward formula. You can also calculate the payment amount using this formula if you prefer.

M = P*i(1 + i)^n / (1 + i)^n – 1

M – estimated monthly mortgage payment;

P – principal;

I – monthly interest rate (to determine it, divide your annual mortgage rate by 12);

N – the loan term expressed in months (in other words, the overall number of monthly payments)

Imagine you are applying for a 15-year mortgage loan with a fixed 6.99% APR (which is .0699 as a unit fraction). The house costs $500k, with 10% ($50,000) to be paid down. The principal amount (P) will be equal to 90% of the initial home cost ($500,000 – $50,000 = $450,000).

I = .0699 % / 12 = .005825%.

Finally, let’s convert the loan length from years to months: N = 15 * 12 = 180.

M ($) = 450,000*.005825(1 + .005825)^180 / (1 + .005825)^180 – 1 ≈ 4042.

So, you are going to pay about $4042 a month.

It is important to note that the calculated M value is approximate, as no extra fees are taken into account.

Tips for first-time home buyers in Maryland

To begin with, numerous federal agencies, including USDA, FHA, and VA, provide loan guarantees for specific borrowers. These agencies offer various options tailored to the financial constraints of many first-time homebuyers.

Besides these government-guaranteed programs, it is worth considering some offers from UHC (Maryland Housing Corporation) available to Marylandns. In particular, first-time home buyers can apply for FirstHome – down payment and closing costs assistance program, if they qualify for a FHA loan and their FICO score is at least 660. This option covers up to 6% of the loan amount toward down payment and/or the closing costs. It is important to note that this option comes in the form of a 30-year-fixed-rate second loan only. If you do not qualify for the FirstHome program, do not despair. Maryland Housing Score Loan is an alternative program that covers up to 4%. The minimum satisfactory credit score is 620.

In other words, here are some helpful tips for first-time homebuyers:

1. Get pre-approved in advance to boost your credibility with home sellers. It's highly recommended to obtain pre-approval letters from not just one, but at least two or three different lenders.
2. Compare different mortgage rates from multiple lenders. Aim to consider at least three lenders to get a better understanding of your options.
3. Conduct preliminary financial calculations based on the pre-approved amount to plan for your future expenses.
4. Start saving for a down payment as early as possible and set aside as much as you can. A larger down payment reduces the principal amount, which can ultimately lower your overall costs. So, it's important to begin saving in advance.
5. If you are eligible for a VA loan, give this option top priority.
6. Explore both government-backed plans and local assistance programs, as they may present enticing offers that you shouldn't overlook.
7. If feasible, work on paying off any existing debts to improve your financial standing.