Refinance Calculator – Maryland

Maryland homeowners refinance to lower interest rates, reduce monthly payments, or adjust loan terms in a state with higher-than-average home prices and competitive lending markets.

This Maryland refinance calculator helps you determine whether refinancing creates real savings after accounting for closing costs.

Maryland Mortgage Refinance Calculator

Why Refinancing in Maryland Is Different

Maryland has relatively high median home prices compared to many states, which increases the potential impact of interest rate reductions.

Proximity to Washington, D.C. and Northern Virginia creates strong competition among lenders, often benefiting borrowers with good credit.

Many homeowners refinance to manage larger loan balances more efficiently.

Maryland Refinance Examples

Example 1 – Monthly Savings:
A $360,000 balance refinanced from 6.8% to 6.0% with $5,800 in closing costs may save ~$185 per month, breaking even in ~31 months.

Example 2 – Term Reduction:
Switching from a 30-year to a 20-year loan increases monthly payments but saves tens of thousands in interest.

Example 3 – High-Balance Loans:
Homeowners with larger balances benefit most from small rate reductions.

Is Refinancing Worth It in Maryland?

Situation Refinancing Impact
Rate drop ≥ 0.75% Often worthwhile
High loan balance Greater savings potential
Short-term ownership Usually not beneficial
Long-term residence Higher savings potential

Frequently Asked Questions – Maryland Refinance

Are refinance closing costs high in Maryland?

They can be higher due to larger loan balances and local fees.

Does refinancing change Maryland property taxes?

No. Property taxes are determined by local assessments.

Is refinancing common in Maryland?

Yes, especially in the D.C. metro region.

Are refinance rates higher than purchase rates?

Refinance rates are typically slightly higher.

Can I refinance more than once?

Yes, but repeated refinancing increases total borrowing costs.

Does refinancing affect credit score?

A small, temporary dip is normal.

Is cash-out refinancing popular in Maryland?

Yes, often used for renovations or consolidating high-interest debt.

Should I refinance if I plan to move soon?

Only if the break-even period occurs before selling the home.

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Disclaimer

This refinance calculator provides estimates for educational purposes only and does not constitute financial, legal, or tax advice.