Maryland Mortgage Guide 2026

Buying a Home in Maryland

Maryland is one of the more expensive states to buy into, full stop. The median sale price in April 2026 sat around $433,000 statewide — and that number blurs a wide range, from row homes in Baltimore City under $200,000 to single-family houses in Montgomery County that routinely clear $700,000. Add the state's layered transfer and recordation tax structure, and buyers here carry higher upfront costs than in most of the country.

The good news: Maryland runs one of the more substantive state mortgage assistance programs in the country. The Maryland Mortgage Program has been lending since 1980 and currently offers multiple products that combine below-market rates with real down payment money. If you qualify, skipping it would be leaving thousands on the table.

This guide covers the numbers that matter most: property tax rates by county, the exact transfer and recordation tax mechanics, current MMP loan products, and a sample payment estimate so you can see what these costs look like combined.

Maryland Property Taxes

Maryland's average effective property tax rate is 0.92% of assessed home value, according to the Tax Foundation's 2026 data. That puts the state in the middle of the national pack — well below Illinois or New Jersey, but higher than much of the Southeast.

The state levies its own real property tax, currently set at $0.112 per $100 of assessed value by the Board of Public Works. Counties then add their own rates on top. What you actually pay depends almost entirely on which county you're in and your home's triennial assessment from the State Department of Assessments and Taxation (SDAT).

Estimates based on Tax Foundation 2026 data and Maryland DLS county rate tables. Assessed value may differ from purchase price. Verify your county rate at dat.maryland.gov.

One wrinkle worth knowing: Maryland reassesses properties on a three-year cycle. When your home is sold above its current assessment, the phased-in increase means your first tax bill may look low — then climb over the following two years as SDAT phases in the new value. Budget for that ramp.

Closing Costs, Transfer & Recordation Taxes in Maryland

Maryland buyers should budget 2%–5% of the purchase price for closing costs. On the April 2026 median home price of roughly $433,000, that's approximately $8,660–$21,650 out of pocket at the table. Maryland's layered tax structure is the main reason costs run above the national average.

State Transfer Tax

The state charges a 0.5% transfer tax on the sale price, split evenly between buyer and seller by convention (0.25% each). First-time homebuyers purchasing a primary residence pay a reduced rate of 0.25% total on the first $500,000 — saving up to $1,250 compared to a standard buyer's share. Above $500,000, the standard rate applies to the excess.

Note: Senate Bill 582, effective July 1, 2025, made additional changes to how transfer and recordation taxes are structured at the state level. Confirm the current rates for your settlement date with your title company.

County Transfer Tax

Most Maryland counties add their own transfer tax, typically ranging from 0% to 1.5% of the sale price depending on jurisdiction. Montgomery County charges 1% of the full sale price; Baltimore City adds 1.5%. Some counties, like Carroll, charge no county transfer tax at all. Ask your title company for the current schedule specific to your county before finalizing your cash-to-close estimate.

Recordation Tax

Recordation taxes — charged when deeds and mortgage documents are filed with the circuit court — run from approximately $3.30 to $7.00 per $500 of consideration, again varying by county. On a $430,000 purchase, recordation taxes alone can add $2,800–$6,000 to your closing tab. Unlike transfer taxes, recordation taxes are typically paid by the buyer.

Other Standard Buyer Costs

• Lender origination fee: 0.5%–1% of loan amount
• Appraisal: $450–$650
• Home inspection: $350–$600
• Title insurance (owner's policy): ~0.5% of purchase price
• Prepaid interest, escrow setup, and homeowners insurance: varies

First-Time Buyer & Down Payment Assistance Programs

The Maryland Mortgage Program (MMP), administered by the Maryland Department of Housing and Community Development (DHCD), is the state's flagship homebuyer assistance platform. It pairs a 30-year fixed-rate first mortgage at below-market rates with optional down payment and closing cost assistance. Loans are originated through a network of approved private lenders, not directly through the state.

1st Time Advantage Series

Designed for buyers who haven't owned a home in the past three years (or who are purchasing in a federally designated Targeted Area), the 1st Time Advantage products are the lowest-rate mortgages MMP offers.

• 1st Time Advantage 6000: A $6,000 zero-interest deferred loan for down payment and closing costs. No payments until the first mortgage is paid off, refinanced, or the home is sold.
• 1st Time Advantage 3% / 4% / 5%: Down payment assistance equal to 3%, 4%, or 5% of the primary mortgage amount, structured as a zero-interest deferred loan.
• HomeStart: For buyers at or below 50% of area median income, HomeStart provides a deferred DPA loan up to 6% of the first mortgage amount.

Flex Loans

The Flex products are available to both first-time and repeat buyers on any residential property purchase. They use the same 30-year fixed structure and offer the same DPA tier options (Flex 3%, 4%, 5%, or a $6,000 deferred loan). If you've owned before and don't qualify for the 1st Time Advantage series, Flex is the entry point.

Maryland SmartBuy 3.0

SmartBuy is one of the more unusual state programs in the country. It addresses the intersection of student debt and homeownership directly: eligible buyers can receive up to 15% of the home purchase price — now capped at $25,000 (increased as of June 1, 2026) — to pay off qualifying student loan debt at closing. The assistance comes as a zero-interest loan forgiven entirely after five years in the home. A 720 middle credit score is required, and borrowers must carry at least $1,000 in outstanding student debt.

Partner Match

MMP's Partner Match program allows employers, nonprofits, and local governments to contribute down payment funds that the state matches dollar-for-dollar, up to $2,500. If your employer or county participates, this can stack on top of a 1st Time Advantage loan.

Sample Monthly Payment Estimate

The table below uses a purchase price close to Maryland's April 2026 median. All figures are estimates for illustration only — actual rates, taxes, and insurance premiums will vary based on your lender, county, credit profile, and coverage choices.

Assumptions: $430,000 purchase price, $50,000 down (roughly 11.6%), 30-year conventional loan, 6.75% interest rate, statewide average effective property tax rate. PMI drops once you reach 20% equity. Use our calculator below for your actual numbers.

That $3,127 estimate covers principal, interest, taxes, and insurance — but not HOA fees (common in Maryland condo and planned developments), flood insurance (required in FEMA-designated zones in parts of Southern Maryland and the Eastern Shore), or PMI on FHA loans, which follows a different calculation.