Maryland Mortgage Rates

November 29, 2015 07:49 PM Eastern

Refinance rates now in BALTIMORE, MD [Change this]

Home Price (Purchase)
When you get a mortgage to purchase a home, the lender uses the lower of the agreed-upon purchase price or the property's appraised value to determine your maximum loan amount. The loan amount divided by the property home price equals your loan-to-value ratio, or LTV. That ratio is one of the major factors that lenders use to set your mortgage rate. If your LTV exceeds 80 percent, you'll probably be required to pay mortgage insurance, which increases your monthly payment. If the property appraises for less than the agreed-on purchase price, you are not usually required to complete the purchase.
Home Value (Refinance)
This is your estimate of the current value of your property. When you refinance, your home is almost always evaluated by a licensed appraiser. The refinance loan amount divided by the property's appraised value equals your loan-to-value ratio (LTV), and that number is one of the major factors that determine your mortgage rate. To get an accurate refinance rate quote, your home value estimate must be reasonably accurate.
Down Payment
The down payment is the amount you pay upfront when you finance property. Your purchase price minus your down payment equals your mortgage amount. The higher your down payment, the more likely you are to be approved for a home loan. If your down payment is less than 20 percent of the purchase price, you'll probably be required to pay for mortgage insurance, which increases your monthly payment.
Credit Score
Your credit score is a number designed to measure your credit-worthiness. It's based on a formula that combines many factors, including your payment history, amount of credit used and number of accounts. This number is used by lenders to calculate the probability that you'll default on your mortgage. Most lenders won't approve mortgages to applicants with credit scores lower than 620. Your credit score is one of the most important factors that determines your mortgage rate - applicants with higher scores are offered better mortgage rates.

Searching for offers

Mortgage rate quotes displayed on LendingTree LoanExplorer℠, including loan pricing data, rates and fees, are provided by third party data providers including, but not limited to, Mortech®, a registered trademark of Zillow®, LoanXEngine, a product of Mortgage Builder Software, Inc., and LoanTek, Inc.

Mortgage Rate Trends

Monthly | Daily

Maryland Loan Options and Mortgage Rates
The state of Maryland, nicknamed The Old Line State, sits atop the list of states with the highest median income, and has done so for several of the last few years. Because of this Mid-Atlantic state's proximity to our nation's capital, it has become the home of many politicians. Cities like Baltimore and Bethesda house government installations and enclaves for government workers. 

Millions of non-politicos also call Maryland their home, and enjoy access to affordable loan options at attractive MD mortgage rates. Among these are programs offered through the Maryland Department of Housing and Community Development.

Loan Programs and Down Payment Assistance for MD Residents
The Department of Housing and Community Development (DHCD) has an innovative program to work with certain employers to match down payment funds for the borrower. Buyers get a "dollar-for-dollar" match, up to a certain limit, toward down payment and closing costs from these participating employers.  This program, entitled the "House Keys 4 Employees" comes in the form of a zero percent deferred loan that is repayable at the time of payoff or refinance, or upon the sale or transfer of the house.

Another program, The CDA Maryland Mortgage Program, provides low Maryland mortgage interest rates to eligible homebuyers with low-income to moderate-income households through private lending institutions state-wide. This program was developed mainly with first-time homebuyers in mind.

Other available programs are targeted toward seniors 55+, who need to renovate their principal residence. Loans for this group start at current MD mortgage rates, or slightly below, and are based on certain eligibility criteria, including credit and family income levels.  They are setup as 30-year amortizing loans with a maximum loan to value ratio, combined with all other junior or senior loans.

Renovation Loans and Maryland Mortgage Rates
The Maryland Housing Rehabilitation Program (MHRP) provides funds for owners to preserve and improve their single family homes. Available money can be used to bring properties that may have fallen into disrepair up to code.  

Applicants pay a low MD mortgage interest rate on the loan, and must pass eligibility requirements, including proving their ability to repay the loan over time. The amount of the home that can be financed is capped, and loans over a certain amount are considered to be in "second position."  

Once necessary safety and code repairs are made, the homeowner can use additional money to install other general improvements, including in the following areas:

• bathroom
• carpeting
• closet
• fences and landscaping
• kitchen
• other small additions.