Maryland Mortgage Calculator
Calculate the true costs of the Old Line State. Factor in D.C. commuter property values, Baltimore Ground Rent, Front Foot Benefit Charges (FFBC), and the MMP.
The Tale of Two Marylands
Maryland's real estate market is heavily fractured depending on where you commute. The statewide median home price is approximately $415,000, but this number paints an incomplete picture.
If you are looking in Montgomery County, Howard County, or Prince George's County, you are in the Washington D.C. commuter zone. Here, government contractors, federal employees, and tech workers fuel an intensely competitive, high-priced market where townhomes easily eclipse $500,000. Conversely, if you look in Baltimore City or venture out to Western Maryland, you can find historic rowhomes and single-family properties for less than half that price.
The Baltimore Trap: "Ground Rent"
Out-of-state buyers flocking to Baltimore for cheap real estate frequently fall into the Ground Rent trap. Under this archaic 18th-century system, you buy the house, but you do not own the land it sits on.
Instead, you must pay an annual rent to a "ground lease holder." While usually inexpensive (often $50 to $200 a year), if you forget to pay it, the ground lease holder can legally evict you and seize your entire house. Always ask your realtor if a Baltimore property is "Fee Simple" (you own the land) or subject to Ground Rent. If it is subject to Ground Rent, negotiate to buy out the lease at closing.
Taxes and Hidden Fees (FFBC)
Maryland's effective property tax rate is moderate at 1.05%. However, Maryland is one of the few states where residents pay both a state income tax and a local county income tax, making the overall tax burden quite high.
Beware the FFBC: In newer subdivisions, you must watch out for the Front Foot Benefit Charge (FFBC). Instead of the builder paying for water and sewer lines, they pass the cost to the homeowner as an annual fee that lasts 20 to 40 years. This can add $500 to $1,500+ a year to your carrying costs and is entirely separate from your property taxes and HOA dues.
The Maryland Mortgage Program (MMP)
To combat affordability issues, the state provides the incredibly robust Maryland Mortgage Program (MMP).
- MMP 1st Time Advantage: Offers the lowest 30-year fixed interest rates available through the state for first-time buyers.
- Flex Loans (DPA): Provides either a $6,000 grant (which does not need to be repaid) or a 3% to 5% deferred, 0% interest second loan to cover down payment and closing costs.
- Maryland SmartBuy 3.0: One of the most unique programs in the country, this allows buyers with student debt to receive up to 15% of the home purchase price (max $30,000) to pay off their student loans entirely at closing.
Calculating Your Maryland Budget
Let's budget out a $415,000 home purchase in a D.C. suburb, utilizing a 10% down payment and a 6.5% interest rate:
- Mortgage Amount: $373,500
- Principal & Interest: ~$2,361/mo
- Property Taxes (1.05%): ~$363/mo
- Home Insurance: ~$100/mo
- Total Bank Payment: ~$2,824/mo
If this home has a $1,200 annual FFBC and a $150/mo HOA, your actual monthly cash outflow would be over $3,074/mo.
Frequently Asked Questions
What is Ground Rent in Maryland?
Ground Rent is an archaic property system heavily prevalent in Baltimore City and Baltimore County. Under this system, you purchase and own the physical house, but you must pay an annual or semi-annual rent to a 'ground lease holder' who owns the dirt underneath the home.
What is a Front Foot Benefit Charge (FFBC)?
In many Maryland counties, developers finance the initial installation of water and sewer lines by placing a Front Foot Benefit Charge on the property. This is an annual fee billed to the homeowner for 20 to 40 years, completely separate from your property taxes and HOA dues.
Are property taxes high in Maryland?
Maryland's property taxes are moderate, averaging an effective rate of 1.05%. However, residents also pay both State Income Tax and a local County Income Tax, making the overall tax burden in the state quite high.
How does the Maryland Mortgage Program (MMP) work?
The MMP provides 30-year fixed-rate mortgages combined with down payment assistance. Depending on the specific product, buyers can receive $6,000 grants, or 3% to 5% of the loan amount as a 0% deferred second loan.
Why are Montgomery and Prince George's counties so expensive?
These counties directly border Washington, D.C. The heavy concentration of federal government jobs, military contractors, and lobbyists drives intense demand, pushing median home prices well above the state and national averages.
Nearby Real Estate Markets
Comparing housing markets or considering a move across state lines? Check out the true cost of homeownership in neighboring states: