Maryland Refinance Rates & Programs 2026

Maryland homeowners benefit from a strong housing market and proximity to DC, but refinancing comes with state-specific taxes and fees. From Baltimore to Montgomery County and the Eastern Shore, here's what you need to know.

Current Maryland Refinance Rates

As of March 2026:

| Loan Type | Average Rate | |-----------|--------------| | 30-Year Fixed | 6.22% | | 15-Year Fixed | 5.54% | | FHA 30-Year | 6.17% | | VA 30-Year | 5.50% |

Montgomery and Howard Counties may see lower rates. Use our refinance calculator.

Maryland-Specific Refinance Programs

Maryland Department of Housing and Community Development (DHCD)

Maryland Mortgage Program:

• Down payment assistance for purchases
• If you used MMP assistance, check subordination before refinancing

Mortgage Credit Certificate: MCCs provide up to $2,000 annual tax credits.

High-Cost Counties

Several Maryland counties have higher conforming limits:

• Montgomery, Howard, Anne Arundel, Charles, Frederick: Higher limits
• Loans below these qualify for conventional vs. jumbo rates

VA Loans

Maryland has significant military presence (Fort Meade, Naval Academy, Andrews AFB). VA IRRRL available for streamline refinancing.

Cost of Refinancing in Maryland

Maryland has moderate-to-high costs:

| Cost Item | Typical Amount | |-----------|---------------| | Lender origination fee | $0 - $2,500 | | Appraisal | $500 - $750 | | Title insurance | $800 - $1,500 | | Recording fees | $100 - $200 | | Maryland recordation tax | See below | | Total typical closing costs | $4,500 - $8,000 |

Maryland Recordation Tax: Maryland charges recordation tax on refinances:

• State rate: 0.25% of loan amount
• County rate: Varies (0.25%-1.75% depending on county)
• Total: Typically 0.5%-2.0% combined

Example (Montgomery County):

• $400,000 loan
• State tax: $1,000 (0.25%)
• County tax: $2,000 (0.5%)
• Total tax: $3,000

This is a significant cost. Factor it into break-even calculations.

Use our break-even calculator.

When to Refinance in Maryland

Consider refinancing if:

Rates dropped 1.0%+ — Maryland's recordation tax means you need a bigger rate drop to justify refinancing.

You're doing a rate-and-term refi with lower balance — The tax is based on new loan amount, so paying down principal first reduces the tax.

You're a veteran using VA IRRRL — Veterans may receive recordation tax exemptions. Verify with your lender.

See our cash-out guide.

Types of Refinance Available

Conventional, FHA Streamline, VA IRRRL, Cash-Out all available.

Maryland Refinance FAQ

1. How long does refinancing take? 35-45 days. Maryland title work can be complex.

2. Can I avoid Maryland's recordation tax? Not entirely, but:

• Pay down principal before refinancing to reduce loan amount
• Veterans may qualify for exemptions
• Don't refinance repeatedly

3. Will property taxes change? No. Maryland property taxes vary widely by county but refinancing doesn't trigger reassessment.

4. What credit score needed? 580 FHA, 620 conventional, 740+ best rates.

5. Can I keep my DHCD MCC? Yes, with participating lender.

Bottom Line

Maryland's recordation tax (0.5%-2.0%) makes refinancing more expensive than most states. If rates dropped 1%+ and you plan to stay 3+ years, refinancing likely makes sense.

Get quote: See rates here.

---

About the Author: Bill McCoy, licensed mortgage broker, 15 years experience.