Should I Refinance? Calculate Your Savings
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Full Loan Comparison
| Metric | Current LoanCurrent | New LoanNew | DifferenceDiff |
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| Monthly Payment (P&I) | — | — | — |
| Loan Term Remaining | — | — | — |
| Total Interest Cost | — | — | — |
| Total Cost (Interest + Balance) | — | — | — |
| Year | Principal | Interest | Balance |
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Disclaimer: Results are estimates for educational purposes only and do not constitute financial advice. Actual savings depend on your credit score, lender fees, prepaid interest, and local costs. Consult a licensed mortgage professional before refinancing.
Maryland Refinance Breakdown
Refinancing a mortgage in Maryland presents unique tax considerations that set it apart from neighboring states, but the state's strong home values and proximity to Washington DC make it a compelling market for homeowners looking to improve their loan terms. Average Maryland mortgage balances reached approximately $285,000 in 2024. Markets in Montgomery County, Howard County, and Anne Arundel County remain among the most expensive in the region, with many homeowners sitting on substantial equity after years of steady appreciation.
Refinance Closing Costs in Maryland
Maryland refinance closing costs typically range from 2% to 4% of the loan amount, averaging around $5,500. Maryland imposes a recordation tax on new mortgages, but under Maryland Tax-Property Code Section 12-108, the recordation tax is generally not due on the portion of the refinanced loan equal to the unpaid principal of the existing mortgage, meaning only the new money, such as cash-out amounts, is taxed. Maryland law also requires that deeds and mortgages be certified by an attorney, though title companies may conduct other aspects of the closing.
Cash-Out Refinance Rules in Maryland
Maryland homeowners follow standard national guidelines for cash-out refinances, with conventional loans capped at 80% LTV. Importantly, Maryland's recordation tax exemption applies only to the portion of the refinance that mirrors the existing unpaid principal. Any new money borrowed, such as in a cash-out refinance, is subject to the full recordation tax, which varies by county and can run from 0.5% to 1.0% or higher in some jurisdictions. Factoring this tax into the cash-out cost comparison is essential for Maryland homeowners.
Local Refinance Assistance Programs
The Maryland Department of Housing and Community Development (DHCD) administers the Maryland Mortgage Program, which offers competitive below-market interest rates for eligible homebuyers and in some cases can be accessed for refinance scenarios through approved lenders. The Maryland SmartBuy program helps homeowners with student debt through incentivized financing. Local housing authorities in Montgomery and Prince George's counties also offer homeowner assistance programs worth exploring for income-qualified Maryland residents.