CURRENT MORTGAGE AND REFINANCE RATES IN MARYLAND

Current Maryland Mortgage Rates

In Maryland, the average APR for a 30-year fixed rate mortgage is 7.354%, as of June 23, 2024. This rate represents an increase of one basis point from the previous week. Basis points refer to 1/100th of 1%—for example, a rate that goes from 5% to 5.06% would be a six point basis point increase.

The rates below come from Redfin and its partner icanbuy. They’re based on a $320,000 loan for a purchase of a single-family home and assume a 740+ credit score and a 20% down payment. If you have a lower credit score or smaller down payment, you’ll likely end up with a higher mortgage rate.

Your rate depends on other factors as well, such as your repayment term, type of rate (fixed or adjustable) and home loan product, whether a conventional loan, FHA loan or VA loan. The table also shows both interest rates and annual percentage rates, or APRs. Interest rate refers to interest charges alone, while APR is a more inclusive term that takes into account both interest and fees.

Here are the current mortgage rates in Maryland:

Refinance Mortgage Rates in Maryland

Refinance rates in Maryland are slightly higher than mortgage rates, with an average APR of 7.509% on 30-year fixed refinance loans. If your current rate is lower, mortgage refinancing may not be a financially beneficial move at this time.

Here are the current refinance rates in Maryland:

Vault’s Viewpoint: Maryland Mortgage Rates Trends in 2024

Maryland mortgage rates have stayed above 7% for most of 2024 so far. Rates on 30-year fixed-rate mortgages were around 7.3% in March and have now reached about 7.4% in June.

These rates are significantly higher than the historical lows of 2% to 3% during the COVID-19 pandemic. Rates increased across the board as the Federal Reserve hiked its benchmark federal funds rate starting in early 2022 to combat inflation.

The Fed has been holding rates for about a year now and has indicated it may start to cut them before the end of the year. Experts at the National Association of Realtors predict mortgage rates will likely stay between 6% and 7% for the rest of 2024.

Mortgage Options Available in Maryland

The majority of homeowners who take out a mortgage in the U.S. opt for a conventional home loan from a bank, credit union or other lender. However, there are other options available to prospective homebuyers, such as FHA loans, VA loans and USDA loans. Here’s a closer look at each option.

Conventional Mortgage

Conventional home loans typically require a minimum credit score of 620, a debt-to-income ratio below 50% and a down payment of at least 3%. Making a down payment of at least 20%, however, will likely score you a better rate and help you avoid private mortgage insurance (PMI). PMI can cost between 0.2% and 2% of your mortgage amount each year.

FHA Loan

Insured by the Federal Housing Administration, FHA loans offer a path to homeownership for borrowers with weak credit. You can qualify with a FICO score of just 500. Borrowers with scores between 500 and 579 will have to make a down payment of 10%, whereas borrowers with scores of 580 or higher can put down as little as 3.5%. FHA loans come with Mortgage Insurance Premiums (MIP), which you’ll have to pay on a monthly basis for 11 years or the life of the loan, depending on how much your down payment was.

VA Loan

Military servicemembers and veterans might qualify for a VA loan, which is guaranteed by the Department of Veterans affairs. These loans don’t require any down payment, nor do they charge mortgage insurance. However, you might have to pay a funding fee that costs between 1.25% and 3.3% of your loan amount.

USDA Loan

If you’re looking at a home in a rural area of Maryland, you might qualify for a USDA loan guaranteed by the U.S. Department of Agriculture. Like VA loans, USDA loans don’t have a down payment requirement. However, your home will have to be located in an eligible area and your income must fall within designated guidelines to qualify.

First-Time Home Buyer Programs Available in Maryland

Maryland’s Department of Housing and Community Development provides multiple first-time homebuyer programs through its Maryland Mortgage Program. These programs may offer a competitive interest rate, down payment assistance or both. Here are some of your options:

• 1st Time Advantage Direct: This program doesn’t offer down payment assistance, but it does provide competitive rates on 30-year fixed rate mortgages to first-time homebuyers or buyers who haven’t owned a home in the past three years.
• 1st Time Advantage 6000: This program offers $6,000 in down payment assistance in the form of a second mortgage with a 0% interest rate. You’ll have to pay back the amount once your first mortgage ends.
• 1st Time Advantage 3%, 4% and 5% Loans: This program also offers down payment assistance in the form of a deferred second mortgage with 0% interest. You might qualify for assistance equal to 3%, 4% or 5% of your mortgage’s principal amount.
• Maryland SmartBuy: This program is designed to help student loan borrowers buy a home. If you owe at least $1,000 in student loans, you could qualify for down payment assistance up to 15% of your home’s purchase price, with a maximum benefit of $20,000.

How to Find the Best Mortgage Rates in Maryland

The mortgage rate you get can have a big impact on your monthly mortgage payments and long-term costs of borrowing. Here are some tips for finding the best interest rates in Maryland.

1. Increase your credit score. Try improving your credit before you apply to qualify for the best possible mortgage rate. Paying down credit card debt and making on-time payments on your loans can help. Review a free copy of your credit report from AnnualCreditReport.com and, if you spot any errors, try disputing them to have them removed.
2. Make a bigger down payment. Increasing the size of your down payment could score you a better mortgage rate. Plus, paying 20% or more will mean you don’t have to pay PMI.
3. Explore various home loan programs. Review all your options for home loans, including conventional mortgages and FHA loans. Check out Maryland’s programs for first-time homebuyers, too, to see if you could qualify for a better interest rate or down payment assistance.
4. Check your rates with multiple lenders. Shop around with at least three lenders before choosing a loan offer. You’ll need to get preapproved for an accurate rate estimate, which involves a hard credit inquiry. However, multiple hard inquiries on your credit will be treated as a single check if you keep your mortgage shopping within a 45-day window.
5. Consider purchasing discount points. You may have the option of purchasing discount points at closing in exchange for a better interest rate. Do the math to see whether reducing your rate with discount points would be worth the extra expense you’d have to pay upfront.

How To Pick a Mortgage Lender

There are lots of mortgage lenders to choose from, so it can be tough to pick one. As you start your search for the best mortgage lenders, consider what kind of loan you’re looking for. For instance, think about whether you want a conventional loan or FHA loan, a fixed or adjustable rate or a 30-year or 15-year term.

You can further narrow down your list of lenders by asking for recommendations from friends and family. Read online reviews as well to see what customers had to say about their borrowing experience.

Contacting lenders directly can help you get a sense of the quality of customer service. Ask how long it takes to fund a loan, what documentation you must provide and anything else you need to know about the process.

You can also get preapproved with multiple lenders to view your rates and terms. Taking the time to shop around can help you find a mortgage with the best interest rate.

Mortgage Statistics in Maryland

Home prices in Maryland vary by location, but the median sales price was $460,000 as of April 2024, according to real estate data provider ATTOM. Here are some other statistics you might want to know if you’re thinking about buying a home in Maryland:

• Median down payment: $61,675
• Number of homes sold: 5,951
• Number of purchase loans: 4,694
• Number of refinance loans: 3,915
• Total residential properties: 1,953,519
• Average age of single-family homes: 49 years

The post Current Mortgage and Refinance Rates in Maryland first appeared on Newsweek Vault.

2024-06-27T18:08:50Z dg43tfdfdgfd