mortgage refinance rates maryland planning guide for homeowners

What shapes your rate

In Maryland, refinance pricing hinges on national bond markets, local lender competition, credit score, loan-to-value, property type, and whether you choose a 15- vs 30-year term. Always compare APR, not just the note rate, and weigh points, lender credits, and third‑party fees.

When a refi pays off

Refinancing can shine when you cut your rate by at least 0.5% to 1%, shorten the term, or swap an ARM for a fixed loan. Use a break‑even estimate: total costs divided by monthly savings. In Maryland, many counties reduce recordation tax on the amount that simply replaces your existing balance-ask your title company.

• Pros: Lower interest expense, faster equity build with shorter terms, potential cash‑out for improvements.
• Cons: Closing costs, resetting the clock, possible PMI if equity is thin, and rate lock risk if markets jump.

How to shop smart

Get same‑day quotes from banks, credit unions, and brokers; request identical scenarios; verify discount points vs lender fees; consider a 30–60 day lock with a float‑down; keep documentation ready to prevent delays.