MARYLAND MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Maryland.
Current mortgage refinance rates in
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Maryland.
Key Points
• Mortgage refinance rates shift due to economic factors such as Federal Reserve policies, inflation, bond market performance, and housing inventory levels, as well as a person’s credit score.
• Even a 1% reduction in your mortgage refinance rate can translate to substantial monthly savings, adding up to a considerable amount over the loan’s lifetime.
• Options for refinancing a mortgage include conventional, ARM, cash-out, FHA, and VA, among others.
• Those who qualify for VA or FHA loan refinancing in Maryland may qualify for some of the most competitive mortgage refinance rates around.
• Refinancing from a 30-year to a 15-year mortgage could slash your total interest payments, even with the higher monthly costs. On a $1 million loan, that could mean savings of nearly $900,000.
Introduction to Mortgage Refinance Rates
What exactly is mortgage refinance? Simply put, it’s the process of replacing your existing mortgage with a new one. The new loan comes with updated terms and a different interest rate.
Whether you want to lower your monthly payments, shorten your loan term, or take cash out of your home, the type of refinance you choose will play a big role in the interest rate you’re offered. This guide will help you understand how mortgage refinance rates work and how you can get the best rate for your refi in Maryland.
💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.
Where Do Mortgage Refinance Interest Rates Come From?
Up and down they go: Mortgage refinance interest rates are typically in motion, reflecting various economic factors and your unique financial profile.
Key economic considerations include Federal Reserve policies, inflation trends, the bond market’s performance, and current housing inventory levels. Typically, higher inflation rates and increases in federal funds rates tend to lead to higher mortgage refinance rates. A hot housing market, in which inventory is low and prices soar, can have a similar impact.
Conversely, when there is an upward trend in bond prices, interest rates generally experience a decline. By closely monitoring these factors, you can anticipate potential rate changes and make informed decisions about the optimal time to refinance a home loan, securing the best possible rates for your financial situation.
Don’t overlook the impact of your credit score on the rates you will be offered. If, say, you weren’t punctual about paying bills, that will likely lower your credit score. This tells lenders that you could be a risky borrower, so they may charge you a higher APR, or annual percentage rate, than someone with a loftier score.
If current mortgage rates are holding steady, you might work on building your credit score for a number of months to qualify for a lower interest rate vs. refinancing right away.
How Interest Rates Affect Home Affordability
Interest rates play a pivotal role in the affordability of your refinance payment. Your monthly payment hinges on the loan amount, repayment term, and the mortgage refinance rate.
Picture this: A $200,000 loan at 6.00% over 30 years results in a $1,199 monthly payment. Now, the same loan at 8.00%? That’s a $1,467 monthly payment. Over the life of the loan, a lower interest rate could potentially save you nearly $100,000. That’s a significant chunk of change.
Why Refinance in Maryland?
Refinancing your mortgage can be a strategic financial move for several reasons. Obviously, lowering your monthly payment (and putting the savings toward debt or other uses) is a key motivation. But there are plenty of other forces that could be at work. Here’s a closer look.
Common Reasons to Refinance a Mortgage
Here are some common reasons why Maryland homeowners may refi their home loan. Keep in mind, though, that in terms of how soon you can refinance your mortgage, you typically need at least 20% equity.
• You qualify for a lower mortgage refinance rate because of market conditions or having built your credit score. That can mean more money in your pocket.
• You’re looking to adjust your repayment term to better fit your budget or to become debt-free sooner.
• You want to cash out home equity to cover expenses like college tuition.
• Your adjustable rate is about to change, and you want to lock in a fixed rate.
• You have an FHA loan and have reached at least 20% equity in your home, so you’re ready to eliminate your FHA mortgage insurance premium.
How to Get the Best Available Mortgage Refi Interest Rate
If you’re interested in securing the best mortgage refinance rate in Maryland, there are a few important steps to take:
• Check your credit score, and build it as much as possible prior to applying for a mortgage refi. Timely bill payments are the single largest factor contributing to your score.
• Maintain a debt-to-income ratio under 36%.
• Compare interest rates and fees from multiple lenders. Many prospective borrowers are surprised to see how big an impact fees can have on mortgage refinancing costs.
• Think about purchasing mortgage points for lower rates. While this will increase the amount of cash you need upfront, it can lower the overall price you pay to borrow.
• You might also consider a shorter-term loan for a lower rate. Due to the shorter term, your monthly payment may be higher, but over the life of the loan, you could pay significantly less. It’s worth doing the math to see what suits your situation best.
Understand Trends in Maryland Mortgage Interest Rates
Americans have seen a lot of movement in mortgage rates in the past few years, from historic lows to rates that have prospective homeowners and refinancers feeling the pinch. If you’re thinking of refinancing in Maryland, understanding historical precedents and current trends can help you decide when and how to refinance your mortgage.
Historical U.S. Mortgage Interest Rates
In the United States, mortgage refinance rates have seen some wild swings over the years. In 2021, interest rates dropped, and the average 30-year fixed rate was about 3.15%. But by 2023, it had shot up to 7.00%. While the forecast in 2024 was that rates might fall, as of early 2025, rates remain higher than some would like.
Mortgage rate changes are driven by a variety of factors, including Federal Reserve policies and market conditions. By keeping an eye on these trends, you can make an informed decision about when to refinance your mortgage and get the best deal for your financial situation. Here’s a snapshot of the last few decades’ mortgage rates to give you a bird’s-eye view.
Historical Interest Rates in Maryland
In Maryland, mortgage refinance rates generally follow national trends. By looking at these historical rates, you can get a sense of what future rates may look like and decide when to lock in your rate. (Why does the chart stop at 2018? That’s when the Federal Housing Finance Agency stopped compiling state by state data.)
| Year | Maryland Rate | National Rate |
|---|---|---|
| 2000 | 8.00 | 8.14 |
| 2001 | 7.05 | 7.03 |
| 2002 | 6.58 | 6.62 |
| 2003 | 5.91 | 5.83 |
| 2004 | 5.81 | 5.95 |
| 2005 | 6.05 | 6.00 |
| 2006 | 6.67 | 6.60 |
| 2007 | 6.49 | 6.44 |
| 2008 | 6.12 | 6.09 |
| 2009 | 5.03 | 5.06 |
| 2010 | 4.72 | 4.84 |
| 2011 | 4.55 | 4.66 |
| 2012 | 3.65 | 3.74 |
| 2013 | 3.91 | 3.92 |
| 2014 | 4.14 | 4.24 |
| 2015 | 3.98 | 3.91 |
| 2016 | 3.79 | 3.72 |
| 2017 | 4.15 | 4.03 |
| 2018 | 4.66 | 4.57 |
Choose the Right Mortgage Refi Type
Each person’s goals and needs will be unique when looking to refinance in Maryland. One person might want a shorter loan term so they can be done with payments sooner and retire early. Another might want to cash out to put funds toward a child’s college education.
You’ll want to review your situation and options to find the right features and advantages. Consulting with a mortgage professional could make sense, too. Here’s a closer look at some of the mortgage refi types to consider.
Conventional Refi
Conventional refinancing, or rate-and-term refinancing, can adjust your interest rate or loan term. These refinance options generally come with higher mortgage refinance rates than government-backed loans (which you may or may not qualify for).
Conventional refinances in Maryland may be a good fit if you’re looking to lower your monthly payment or shorten your loan term. To qualify for a conventional refinance, you’ll typically need a good credit score and at least 20% equity in your home.
15-Year Mortgage Refi
The decision to refinance from a 30-year to a 15-year mortgage can be a game-changer, slashing your total interest payments over the loan’s lifetime, even if it means higher monthly payments.
Here’s an example that shows the dramatic impact this move can have.
• If you have a 30-year, $1 million loan at a 7.50% rate, you would pay around $6,992 per month and total interest of $1,517,167.
• If you refinance to a 15-year term at 7.00%, the monthly payment jumps to about $8,988, which could put the squeeze on your cash flow. However, if you can afford it, know that the total interest paid plummets to roughly $617,891. That will save you close to $900,000, which you might even think of as a kind of financial windfall.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with a lower initial mortgage refinance rate than fixed-rate loans. However, the rate can go up after the initial fixed period and may be higher than a fixed rate. If you plan to move before the rate adjusts, refinancing into an ARM may be a good choice because you could get a lower initial monthly payment and save money on interest. By considering your financial situation and future plans, you can make an informed decision about whether this type of refinance would suit you.
Cash-Out Refi
Cash-out refinances can be a great way for Maryland homeowners to access the equity in their homes. You can potentially refinance your mortgage for more than you currently owe by tapping into the equity you have already built up. You’ll receive a lump sum of cash that can be used for a variety of purposes. This could include home renovations, debt consolidation, or any other financial needs you might have.
Obviously, calculating your home equity is a key step in this process. Your equity is defined as your property’s value minus the amount you owe on your home loan (the outstanding balance on your mortgage). Worth noting: Cash-out refis typically come with higher mortgage refinance rates than traditional refinances.
FHA Refi
FHA loans, backed by the Federal Housing Administration, often come with lower refinance rates, sometimes as much as a full percentage point lower than conventional loans. But (and it’s a major one) FHA Simple Refinances and FHA Streamline Refinances are available only to homeowners who currently have FHA loans.
However, if you don’t have an FHA loan, you may still be eligible for an FHA cash-out refinance or an FHA 203(k) refinance, which is specifically designed for home renovations and repairs.
VA Refi
VA loans, backed by the United States Department of Veterans Affairs, consistently offer some of the most competitive mortgage refinance rates available in the financial market. To qualify for a VA refinance, officially known as an Interest Rate Reduction Refinance Loan (IRRRL), you must currently have an existing VA loan. This specific type of refinance can be particularly helpful as it can result in decreased monthly payments and substantial interest savings over the duration of the loan.
Compare Mortgage Refi Interest Rates
Now that you’re well-versed in the different refi options you’ll find in Maryland, turn your attention to snagging the most favorable rate possible. Doing so may take a bit of time and energy, but it can save you thousands of dollars over the life of your loan. Here are some tips:
• Do shop around and get preapproved with multiple lenders to compare rates and fees. The first offer you find may not be the best.
• Make sure to compare each loan’s annual percentage rate (APR), which includes the interest rate and fees, vs. just zeroing in on the interest rate.
• You might also want to look into buying discount points to lower your interest rate. You’ll fork over more money upfront, but doing so can pay off with big savings in interest over the loan’s term.
• Crunch the numbers on the break-even point (which is the moment when the cumulative savings from your new home loan equals the total cost of refinancing) to see if the savings are worth it.
• Keep an eye on rate changes to snag the best deal for your refinance.
• Make sure the refinance aligns with your financial goals and long-term plans.
Use an Online Refinance Calculator
You’ve heard about crunching and comparing numbers a couple of times now. Online refinance calculators can make this process so much easier. They can help you estimate your new monthly payment and compare different refinance options. By playing with the mortgage refinance rate, loan term, and loan amount, you can see how your choices will affect your finances.
This can help you make a more informed decision and choose the best option for your situation. Making smart financial decisions now can help you stay on track to meet your long-term financial goals.
Run the numbers on your home loan.
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Home affordability calculator
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Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage can be a smart financial move, but it requires some careful consideration. By learning about the different types of refinances available, including cash-out, FHA, VA, and 15-year mortgages, you can make an informed decision that will help you reach your long-term financial goals. Whether you want to refinance to lower your monthly costs or to pull some cash out of your home equity, it’s important to compare mortgage refinance offers from multiple lenders to find the best fit for your needs.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
Should I refinance when rates drop?
Yes, that’s often why people refinance: to access a lower rate and reduce their mortgage payments. However, before you decide to refinance, it’s important to carefully assess the financial implications. You’ll need to compare the interest rate reduction, the closing costs, and any other fees associated with the refinance to the interest you would pay on your current loan over the remaining term. By taking the time to weigh the costs and benefits, you can make a well-informed decision that’s in your best interest.
When is the right time to refinance your home loan?
It’s a savvy financial move to refinance your mortgage when you have the chance to lock in a lower interest rate. This could potentially save you a significant sum over the long haul, making the initial costs of refinancing a sound investment. But it’s crucial to weigh all the variables, like closing costs, potential prepayment penalties, and the break-even point, to ensure that refinancing is the right call for your financial situation.
Will refinancing lower your credit score?
Refinancing might cause a small hit to your credit score, but the benefits of a lower mortgage refinance rate can outweigh that. Lenders typically conduct a hard credit inquiry, which can lower your credit score by several points for a few months, which is a minimal impact. If you’re able to get a lower interest rate, you could save a significant amount of money over the life of your loan, which may be worth dinging your score slightly for a brief period of time.
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¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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How to Refinance a Home Mortgage Loan
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7 Signs It’s Time for a Mortgage Refinance
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