Maryland Mortgage Rates
Compare Maryland mortgage rates and choose the best option for your needs.
Purchase
Purchase
Purchase
Purchase
Purchase
- 0% Down VA Loans for Veterans & Military
- Secure preapproval quickly with 24/7 access
- Competitively low VA rates, no PMI required
- Over 300,000 verified 5-star reviews
- Minimum 620 credit score needed to prequalify
- 0% down USDA loan for rural homebuyers
- 97% of borrowers would recommend to friends or family
- Attention Wells Fargo customers: Special benefits and discounts available
- Get a custom mortgage rate quote in minutes with no credit impact
- As low as 3% down on a fixed-rate mortgage
- Fed finally cuts rates!
- Down payments as low as 1%
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- Rates have fallen, the time is now to move on your home purchase.
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Mortgage in Maryland: Top Lenders in 2024
Looking to purchase a home in Maryland State? The easiest way to do so is to use a mortgage loan, which is effective irrespective of what type of property you are searching for – a residential estate or an apartment. However, it's important to note that home loan terms can differ significantly among various mortgage lenders (use our mortgage calculator to estimate your expenses). In this guide, we'll explore some of the top-rated lenders and determine which ones merit your consideration.
MD Mortgage Lenders Comparison
All the lenders we've reviewed are reputable companies offering competitive rates and proven track records. To provide you with comprehensive information, we'll compare them based on several key criteria such as APR, minimum down payment, minimal requirements, and more.
First Citizens Bank
First Citizens Bank is among the oldest and largest banks in the United States serving retail customers.
Mortgages are offered with either fixed or adjustable (increasing) interest rates. The fixed APR is 6.289% for a 15-year term, 6.256% for a 20-year term, and 6.602% for a 30-year term under perfect conditions. The APR can be reduced by purchasing points, which are upfront payments equivalent to 1% of the principal. The bank requires a minimum of two years of employment, a credit score of 620 or higher, and a Debt-to-Income (DTI) ratio of no more than 43%.
| Pros: | Cons: |
|---|---|
| Extremely well-established. The bank has been around since forever, engaging in a broad variety of financial services. | The website is scanty concerning lender fees (e.g., an underwriting fee can be expected). |
| Offers variable-rate mortgages. These can be especially handy if you plan on selling or refinancing. |
Gateway Capital Mortgage
Gateway Capital Mortgage is a mortgage lender operating across multiple states. According to its website, it offers highly competitive rates, with APRs at 4.902% for a 15-year mortgage, 5.578% for a 20-year mortgage, and 5.594% for a 30-year mortgage. However, the website does not provide all the assumptions behind these calculations. The company requires a minimum credit score of 620 and a minimum down payment of 5%. Established in 2005, Gateway Capital Mortgage proudly holds an A+ rating from the Better Business Bureau (BBB).
| Pros: | Cons: |
|---|---|
| Advertises very low rates. | Information on fees charged is untransparent. |
| Tempting offers for first-time home buyers. |
AmeriSave
AmeriSave , established in 2002, has grown into a prominent nationwide lender, originally rooted in Georgia. This state connection often yields some of the most enticing offers for borrowers. The lender's reliability is underscored by its exceptional ratings from BBB (A+) and Trustpilot (4.3/5).
Their advertised rate of 4.899% necessitates a high FICO score of 740 and a 20% down payment. It's important to note that actual rates are likely to surpass the advertised figures. Generally, a credit score of 620 is required to qualify for a conventional loan, while government-insured programs may accept scores starting from 600.
| Pros: | Cons: |
|---|---|
| Highly lucrative mortgage rates. | Not all of the lender fees included in the closing costs are transparently disclosed at the lender’s website. |
| Diversity of loan types offered. This includes purchase and refinancing with fixed and adjustable rates, as well as the three main kinds of government-backed loans (FHA, VA and USDA). | |
| Easy and convenient, mobile-friendly application process. |
Average Mortgage Rate in Maryland from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in Maryland.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in Maryland
| Criteria | Amount, $ |
|---|---|
| The median home value in Maryland | $387,700 |
| The income required to buy the median priced home in Maryland | $63,523 |
| The monthly mortgage payment required to buy the median priced home in Maryland | $1,471 |
| The median household income for Maryland | $98,810 |
Things to Consider When Choosing a Mortgage Lender
A mortgage loan implies a serious commitment for a period of 15 to 30 years, so you should carefully weigh your options before signing a contract with any lender. There are a number of key aspects to consider when choosing a lending organization.
Type of Lender
There are essentially two popular options: traditional banks and online mortgage lenders. Banks often offer attractive rates, but tend to run strict credit checks. Approval times are longer, and meeting eligibility criteria can be difficult. Online lenders, on the other hand, are more responsive and have less stringent requirements for homebuyers.
APR and Fees
Every loan has its costs, and a mortgage is no exception. These costs extend beyond just the interest rate and include additional fees such as the origination fee, mortgage insurance fee, closing costs, and more. As of the time of writing, for a fixed-rate 30-year loan, the average mortgage rate in Maryland is 6.58%.
Terms and Conditions
You need to consider the minimum size of a down payment, which often varies from 0% to 20% depending on the loan type, your current status (military, employed, self-employed, etc.). Another important parameter is the lifespan of the loan, which is its total length. Common options are 15 and 30 years.
What Mortgage Lender is the Number One in Maryland?
The list of reliable MD mortgage lenders is extensive, so it's hard to give an unambiguous answer to this question. Everything depends. For example, one of the industry leaders is Rocket Mortgage with a loan volume of $11.5 billion for the year 2021. To take your pick wisely, check our list of recommended lenders.
First-Time Homebuyer Programs in Maryland
Buying a home for the first time is quite challenging. Happily, residents of Maryland can take advantage of some governmental programs aimed at raising mortgage affordability.
- Federal Housing Administration loan program. In its framework, a buyer gets insurance from the federal government. The fee for this insurance is included in the total cost of the future loan. In return for this, the homebuyer gets some serious benefits: a low interest rate and minimal credit requirements. Thus, his FICO score can be as low as 500, and the debt to income ratio – just 50%.
- USDA loan program. It is oriented toward those living in rural areas. The participants of this program can get a mortgage loan with a zero down payment. However, their annual income must not exceed 115% of the average income in this region.
- VA loan programs. They are insured by the Veteran Affairs Department. This mortgage option is available to former militaries or their spouses.
Pre-Approval: What Does It Mean?
Preliminary approval is a sort of confirmation of a prospective homebuyer’s credibility. It lets home sellers know that lenders are ready to approve a mortgage loan to the buyer. To get a pre-approval one needs to provide documentary evidence of his paying capacity. A typical document set includes earning statements, account statements, a W2 form, or an alternative proof of income for at least 2 years. Additionally, it’s necessary to fill in the Uniform Residential Loan Application form.