If you’re thinking of purchasing a home in Maryland, you’ll have some of the Old Line State’s 2.4 million housing units from which to choose. With a homeownership rate of 67%, according to the U.S. Census Bureau’s 2019 American Community Survey, a majority of Maryland’s 6 million residents own homes.
The state’s median housing value is $378,124, which is close to the national median price of $404,700. Home values vary by region, and some counties in Maryland have average home prices that are much greater.
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AmeriSave Mortgage Corp. is an online lender that has been in business since 2002. It was one of the first to offer an offsite digital mortgage experience for customers. The company says it has financed more than 664,000 borrowers since it began operating. With headquarters in Atlanta, AmeriSave services loans in 49 states and Washington, D.C.
Pentagon Federal Credit Union, widely known as PenFed, offers borrowers access to many types of mortgages: conventional, adjustable rate, jumbo and Department of Veterans Affairs, plus refinancing loans and home equity lines of credit. The financial institution, which serves 2.8 million members, was established in 1935 and is based in McLean, Virginia.
Best for low APR
New American Funding is a mortgage lender offering a variety of home loan options to homebuyers and homeowners nationwide except for Hawaii. The company, founded in 2003 and based in Tustin, California, has originated $64.2 billion in mortgages to date.
PNC Bank is one of the largest banks in the United States, serving more than 9 million customers in all 50 states. A full-service mortgage lender, PNC offers most mortgage loan product types.
Bank of America serves roughly 67 million customers in all 50 states. The lender offers conventional, Federal Housing Administration, Department of Veterans Affairs and jumbo loans as well as home equity lines of credit and mortgage refinancing.
Guaranteed Rate, founded in 2000 and based in Chicago, offers mortgage options including conventional loans, FHA loans, jumbo loans and interest-only loans to customers in all 50 states and Washington, D.C. Borrowers can take advantage of specialized loan products and Guaranteed Rate’s online application, documentation and loan payment options.
Wells Fargo offers a variety of mortgage products nationwide. Options include conventional, government-backed and jumbo loans. You can also refinance an existing mortgage with Wells Fargo.
SoFi is an online lender founded in 2011 and headquartered in San Francisco that offers fixed-rate mortgages. Refinance, jumbo and home equity loans are also available.
Best for customer service
Rocket Mortgage, the largest mortgage lender in the nation, was founded in 1985. The Detroit-based company is best known for its fully digital experience of buying or refinancing a home. Rocket Mortgage changed its name from Quicken Loans in the summer of 2021.
Chase, one of the world’s largest banks, was founded in 1799 in New York and offers fixed-rate, refinance and other mortgage loans.
The average mortgage rate in Maryland is currently 3.9% for the 30-year fixed loan term.
Here are the interest rates offered to Maryland residents looking to buy or refinance a home as of 02/07/2023:
- 30-year fixed purchase: 3.9%
- 30-year fixed refi: 3.49%
- 15-year fixed purchase: 3.52%
- 15-year fixed refi: 4.62%
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Mortgage rates spiked this week, with the average 30-year fixed rate jumping to nearly 7% for the first time since last November. Most fixed and adjustable rates are trending much higher in recent weeks following hawkish warnings from Federal Reserve officials.
Mortgage interest rates are nearly twice as high as they were at the beginning of 2022, which continues to have a tangible impact on mortgage affordability and consumer housing sentiment. Mortgage rates are widely expected to fall throughout the course of 2023, but this recent surge comes just ahead of the busy spring homebuying season. Here are the current mortgage rates, without discount points unless otherwise noted, as of Feb. 23:
- 30-year fixed: 6.96% (up from 6.73% a week ago).
- 20-year fixed: 6.93% (up from 6.77% a week ago).
- 15-year fixed: 6.21% (up from 6.02% a week ago).
- 10-year fixed: 6.31% (up from 5.97% a week ago).
- 5/1 ARM: 5.54% (up from 5.43% a week ago).
- 7/1 ARM: 5.67% (down from 5.7% a week ago).
- 10/1 ARM: 6% (up from 5.9% a week ago).
- 30-year jumbo loans: 6.98% (up from 6.78% a week ago).
- 30-year FHA loans: 6.2% with 0.05 point (up from 5.98% a week ago).
- VA purchase loans: 6.28% with 0.05 point (up from 6.08% a week ago).
Maryland homebuyers can get mortgage interest tax credits and help with down payments and closing costs from these programs.
- Available to: First-time homebuyers, buyers purchasing in a targeted area or honorably discharged veterans who have not previously used the first-time homebuyer exemption.
- Income limits: Vary by county (See MMP income limits).
- First-time homebuyers only?: No.
- Loan options: 30-year fixed-rate mortgages.
- Down payment and closing cost assistance: 1st Time Advantage 5000 comes with a $5,000 loan for down payment and closing costs. This second lien has a 0% interest rate and payment is due when the first mortgage ends. Another option is the 1st Time Advantage 3% Loan, which comes with a DPA loan equal to 3% of the first mortgage in a 0% deferred second mortgage due when the first mortgage ends.
- Available to: Homebuyers in Maryland.
- Income limits: Vary by county (See MMP income limits).
- First-time homebuyers only?: No.
- Loan options: 30-year fixed-rate mortgages.
- Down payment and closing cost assistance: While the Flex Direct loan does not offer assistance, you may be eligible for Flex 5000, a $5,000 loan for down payment and closing costs. This second lien has a 0% interest rate, and payment is deferred until the first mortgage ends. There is also the Flex 3% Loan, a DPA loan equal to 3% of the first mortgage in a 0% deferred second lien. Finally, the Flex 3% or 4% Grant offers a grant equal to 3% or 4% of the mortgage that does not have to be repaid.
- Available to: First-time homebuyers, buyers purchasing in a targeted area or honorably discharged veterans who have not previously used the first-time homebuyer exemption. The home must also be the borrower’s primary residence.
- Income limits: Vary by county (See MMP income limits).
- First-time homebuyers only?: No.
- Loan options: 30-year fixed-rate mortgages.
- Benefit: Claim an annual federal tax credit equivalent to 25% of mortgage interest payments in a given tax year.
- Available to: Homebuyers with qualifying student debt (a minimum balance of $1,000) who purchase program-eligible homes in Maryland. Maryland SmartBuy financing provides up to 15% of the home purchase price for the borrower to pay off his or her outstanding student debt.
- Income limits: Vary by county (See MMP income limits).
- First-time homebuyers only?: No.
- Loan options: 30-year fixed-rate mortgages.
- Down payment and closing cost assistance: Buyers can combine this program with Maryland down payment assistance programs.
U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.
To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. For mortgage lenders, we take into account each company’s customer service ratings, interest rates, loan product availability, minimum down payment, minimum FICO score and online features.
The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.
To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.
To recap, here are the picks:
Best Maryland Mortgage Lenders of 2023
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does not include all loan companies or all loan offers available in the marketplace.
