Mortgage Calculator in Maryland (November 2024)

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Updated: November 12, 2024

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In Maryland, Allegany County has the lowest median monthly mortgage payment at $930, compared to Montgomery County's highest at $4,130. These differences in monthly mortgage payments can significantly impact your short-term budget and long-term financial health, influencing your ability to save and invest for the future.

Using MoneyGeek's mortgage calculator in Maryland can help you estimate your monthly mortgage payment, determine which loan term suits your financial situation better, and see how much interest you will pay over your loan's lifetime. Input your purchase details into the calculator to clearly understand your financial commitment.

Mortgage Calculator

Simply estimate your Maryland loan payments, taxes and PMI.

Updated: Sep 4, 2024

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Get personalized mortgage rates from Maryland.

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Key Takeaways

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Maryland counties with the lowest and highest median monthly mortgage payments are Allegany County at $930 and Montgomery County at $4,130.

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Using a mortgage calculator in Maryland helps find a monthly payment that fits your budget and estimate total interest over the loan's life.

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The average APR for a 30-year mortgage in Maryland is 6.8%, and for a 15-year mortgage, it is 6.0%.

MoneyGeek uses publicly available data from Zillow for the rates on this page. Mortgage rates shift daily, and we take a snapshot to analyze rate information for Maryland. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless otherwise stated, all rates are annual percentage rates (APRs).

See the sources cited for more details about data related to median mortgage payments, home prices, down payments and local tax rates.

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Interest rate data was last updated in September 2024.

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SEE MORTGAGE CALCULATORS IN NEIGHBORING STATES

How to Use Our Maryland Mortgage Calculator

MoneyGeek's mortgage calculator in Maryland can help you calculate your monthly mortgage payments and determine your mortgage's affordability. You'll also gain a clear understanding of your amortization schedule, paving the way for informed financial planning.

Calculate Your Monthly Mortgage Payment

Understanding your monthly mortgage payment involves considering the home's sale price, down payment, and other factors.

  1. 1
    Home Price

    The home price directly influences your monthly mortgage payment in Maryland. A lower home price in Allegany County, at a median of $159,440, means lower monthly payments than in Montgomery County, where the median is $707,950, according to the National Association of Realtors.

  2. 2
    Down Payment

    The size of your down payment influences your monthly mortgage payment by reducing the loan amount. Maryland's median down payment is $77,000, according to ATTOM data from June 2024.

  3. 3
    Annual Percentage Rate

    Your annual percentage rate impacts your monthly mortgage payment, with a lower APR resulting in lower payments. The current mortgage rates in Maryland change over time and vary between loan types. For example, the average APR for a 15-year fixed mortgage is 6.0%, and for a 30-year fixed mortgage, it's 6.8%.

  4. 4
    Loan Terms

    Shorter terms, like 15 years, often have higher monthly payments but result in less interest paid over the life of the loan. Conversely, a 30-year term typically has lower monthly payments but accrues more interest over time. Choosing the right term depends on your financial situation and goals.

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SAMPLE MONTHLY PAYMENT CALCULATION IN MARYLAND

Using the mortgage calculator in Maryland, you can see that the monthly payment for a 30-year fixed rate mortgage on a $275,000 house in Maryland, after a 20% down payment, is $1,434. This figure is based on an average APR of 6.6% and does not include additional expenses such as HOA fees and property tax.

Choosing a 15-year repayment term will change your monthly mortgage payment to $1,856. This decision increases your short-term expenses but could reduce your total interest paid over the life of the home loan by $182,157, providing substantial long-term savings.

Determine Your Mortgage's Affordability

Buying a home is one of the most significant expenses you'll have, and your mortgage payments will take a substantial portion of your monthly income. Understanding your mortgage's affordability is crucial to managing your finances effectively. MoneyGeek's mortgage calculator for affordability can help you determine how much you can afford by simply inputting your monthly income and other monthly debts, such as car loans and student loans.

The calculator also shows your debt-to-income ratio, a critical metric for borrowers. This ratio helps you understand how much of your income goes toward debt payments, which is essential when planning to secure a mortgage. According to Experian, the average debt in Maryland is $131,948, which translates to an average monthly debt of $10,996.

See Your Amortization Schedule

Mortgage amortization is the process of paying off a loan over time through regular payments. Key terms are:

  • Principal: The loan amount you borrow. Understanding this helps you see how much you owe.
  • Interest: The cost of borrowing the principal. Knowing this shows the total cost of your loan.

MoneyGeek's mortgage calculator allows you to see your amortization schedule and estimate the total interest you'll pay over the life of your loan in Maryland. You can also see when your monthly payments begin to go more toward your principal versus your interest, which helps you understand your payment allocation over time.

Additional Mortgage Fees in Maryland

Home buyers in Maryland should consider additional mortgage fees that can impact your budget. For example, mortgage insurance and HOA fees could increase your monthly payment. Property taxes and homeowners insurance are other costs to keep in mind.

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    Homeowners Insurance

    Homeowners insurance protects your property and personal belongings from damage or theft. It also provides liability coverage if someone is injured on your property. The average homeowners insurance in Maryland is $1,916 per year.

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    Property Tax

    Property tax is a levy on real estate that homeowners must pay to the local government. It funds public services like schools and infrastructure. According to the Tax Foundation, Maryland's effective property tax rate is 1.05%, ranking it 20th in the nation.

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    HOA Fees

    HOA fees are payments to homeowners associations for property management, maintenance, and community amenities. These fees are typically paid monthly or annually.

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    Private Mortgage Insurance

    Private mortgage insurance (PMI) protects lenders if a borrower defaults on a loan. It applies to conventional mortgages when the down payment is less than 20%. Borrowers must request cancellation once they reach 20% equity, or it will only be automatically removed at 22%.

How Much Is Private Mortgage Insurance in Maryland?

The average APR for a 30-year fixed loan in Maryland is 6.8%, while a 15-year fixed loan is 6.0%. Using MoneyGeek's PMI calculator, you can see that for a $275,000 home with a 10% down payment, borrowers with a credit score between 680 and 719 pay PMI worth $117 per month for a 30-year loan. The cost of private mortgage insurance becomes $115 if they opt for a 15-year loan instead.

MoneyGeek's Maryland mortgage calculator allows you to see your amortization schedule and determine when you can stop paying for PMI:

  1. 1
    Calculate your monthly mortgage payment

    Input the necessary information, such as the home's price, down payment, and mortgage rate in Maryland. If you already know some fees you need to cover, such as property tax or HOAs, include these. If not, leave them blank but know that you'll still have to pay for these. Run the calculator and get your total monthly payment.

  2. 2
    Calculate for your target equity

    You can request that PMI be canceled when you've accumulated at least 20% equity in your home — this will be your target equity. To calculate your target equity, multiply your home's price by 20%.

  3. 3
    Determine the remaining equity required

    Your down payment already contributes towards the 20% equity you need to request your PMI's cancellation. Deduct your down payment from your target equity to get the remaining amount.

  4. 4
    Establish a timeline

    Go to the third tab of the mortgage calculator. Move the slider until the 'Principal Paid' exceeds your remaining equity required — that'll be the year you can stop paying for PMI.

Private Mortgage Insurance Calculator

Calculate your monthly private mortgage insurance (PMI) premium based on your credit score and down payment.

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WHEN CAN YOU CANCEL YOUR PMI?

Let's say you put in an 8% down payment for a home in Maryland priced at $350,000. With an average APR of 6.8% for a 30-year fixed-rate loan, your monthly mortgage payment is $2,099.

20% of $350,000 is $70,000 — that's how much you need in total to request your PMI's cancellation. Subtracting $28,000 (8% of $350,000) from $70,000 gives you $42,000 — that's how much you still need to pay to hit 20% equity. Assuming that your home's value remains the same over the years and that you consistently pay your mortgage, you can request your lender to cancel your PMI before the end of Year 11.

How to Lower Your Monthly Mortgage Payment in Maryland

Your mortgage is likely your largest monthly expense. For a $225,000 loan in Maryland at 6.8% interest, you'll pay $1,434 each month. If you reduce your APR by 0.25%, your new payment drops to $1,398. That $36 difference each month adds up — over a 30-year fixed-rate mortgage, you'll save $13,120 in total interest.

This example shows the value in learning how to lower monthly mortgage payment. Here are some strategies to consider:

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    Improve your credit score

    Credit score affects your mortgage. In Maryland, with a down payment between 5% to 20%, the average APR for a 30-year fixed rate mortgage is 7.2% if your credit score is above 740. If your score is below 680, the APR rises to 7.8%. This increases your monthly payments from $1,493 to $1,584.

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    Save for a bigger down payment

    Putting a bigger down payment may result in lower monthly mortgage payments. For a $225,000 loan in Maryland, putting 8% down makes your APR 7.4%, resulting in a monthly mortgage of $1,752. Increasing your down payment to 25% puts your APR at 7.0% and a monthly mortgage of $1,372.

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    Choose a longer loan term

    A longer loan term affects your monthly mortgage payment. A 15-year fixed rate mortgage in Maryland has an APR of 6.0%. A 20% down payment makes your monthly mortgage payment $1,856. Compare this to $1,434, which you'll pay each month if you change loan terms to 30 years, even if your APR increases to 6.8%.

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    Explore homeownership assistance programs

    You can find homeowners assistance programs in Maryland that may help with your mortgage costs. Institutions like the Maryland Department of Housing and Community Development and the Housing Authority of Baltimore offer various forms of assistance to eligible homeowners.

FAQ: Mortgage Calculations in Maryland

Understanding how to use a mortgage calculator can raise questions for potential borrowers, particularly in Maryland's housing market. We've addressed commonly asked questions to help you better understand your mortgage options.

How much mortgage can I afford in Maryland?
What is the average mortgage debt in Maryland?
How much down payment do I need to purchase a house in Maryland?
Do you really need private mortgage insurance in Maryland?
What's the effective tax rate in Maryland?
What is the median home price in Maryland?

About Zachary Romeo, CBCA

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Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

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