Mortgage Payment in Maryland

Market Overview: Maryland Housing Mid-Range

Maryland ranks as a mid-range housing market, with a median home price of $425,692. The state's effective property tax rate of 1.10% is higher than the national average of 1.00%, and annual homeowners insurance averaging $1,671 falls below the US median of $2,201.

These three factors — price level, tax burden, and insurance costs — combine to shape the true monthly cost of homeownership in Maryland. Below we break down a realistic purchase scenario using state-specific data.

🏡 Purchase Example: Buying a $425,692 Home in Maryland

Using the state's median home price of $425,692, a 20% down payment, and a 6.5% 30-year fixed rate, here is the complete picture of what it costs to buy in Maryland:

Cost Component	Amount
Home Price	$425,692
Down Payment (20%)	$85,138
Loan Amount	$340,554
Estimated Closing Costs (3.5%)	$14,899
Total Cash Needed at Closing	$100,037

Monthly Payment (20% Down)

Item	Monthly
Principal & Interest	$2,153
Property Taxes (1.10%)	$390
Homeowners Insurance	$139
PMI (not needed at 20% down)	$0
Total Monthly Payment	$2,682

Annual income needed (28% DTI): $115,000/yr

PMI Scenario: What If You Put Only 10% Down?

With a 10% down payment ($42,569), you'd have a loan of $383,123 and would need to pay Private Mortgage Insurance (PMI) at roughly 0.7% of the loan annually:

Item	10% Down	20% Down (savings)
Principal & Interest	$2,422	$2,153
Monthly PMI	$223	$0
Total PITI+PMI	$3,175	$2,682

The lower down payment costs you an extra $493/month (P&I + PMI). You would need $137,000/yr to qualify under the 28% DTI rule. PMI can typically be canceled once you reach 20% equity.

First-year interest: In year one, $22,024 of your payments go to interest alone. Over the full 30-year term, you'll pay $434,357 in total interest.

💰 State-Specific Cost Notes for Maryland

Property taxes in Maryland are 1.10%, meaning about $4,683/year ($390/month) on the median-priced home.

Homeowners insurance in Maryland averages $1,671/year ($139/month).

Closing costs in a mid-range market like Maryland typically run 2%–4% of the purchase price — roughly $14,899 on a $425,692 home. This includes loan origination, appraisal, title insurance, escrow fees, and prepaid taxes/insurance.

Monthly Payment on a $425,692 Home in Maryland

With a standard 20% down payment ($340,554 loan) and a 6.5% interest rate on a 30-year fixed-rate mortgage, your estimated total monthly payment comes to $2,682.

Monthly Payment Breakdown (PITI)

Component	Monthly Cost	Annual Cost
Principal & Interest	$2,153	$25,836
Property Taxes (1.10% est.)	$390	$4,680
Home Insurance	$139	$1,668
Total Monthly Payment	$2,682	$32,184

Income Required in Maryland

Using the standard 28% front-end DTI rule, you'd need a gross annual income of approximately $115,000 to comfortably afford the median-priced home in Maryland with 20% down at 6.5%.

How Interest Shapes Your Payments

In your first year, approximately $22,024 goes toward interest alone. Over the full 30-year term, you'll pay a total of $434,357 in interest.

Amortization Schedule — First 10 Years

* Full 30-year amortization available in our interactive calculator.

❓ Frequently Asked Questions — Buying a Home in Maryland

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