Maryland variant. This is a Maryland-specific version of the Refinance Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Refinance Calculator.
Refinancing a Maryland mortgage makes sense when the monthly interest savings recover your closing costs before you sell or move. On the state's $425,000 median home, even a small rate drop moves real money.
When refinancing pays off in Maryland
Closing costs typically run 2-5% of the loan balance. On a $340,000 loan (80% of the $425,000 median home), that's roughly $10,200 at 3%.
Your break-even point is closing costs ÷ monthly savings. Drop your rate enough to save $200/month and you'd recover $10,200 in about 51 months - refinance only if you'll stay past that point.
About taxes and housing in Maryland
Maryland combines a state income tax with mandatory county income taxes, so the combined rate varies significantly by where you live.
Maryland's property taxes are near the national average and include both state and county components.
Maryland consistently ranks among the highest in median household income, driven by federal government, biotech, and defense employment near Washington, D.C.
Worked example: break-even in Maryland
Loan $340,000, closing costs ≈ $10,200 (3%). If a refinance cuts your payment by $250/month, break-even ≈ 41 months. Use the calculator above with your actual rates and balance.
Quick reference
- State income tax: 2-5.75% plus county tax (up to 3.2%)
- State sales tax: 6% (plus 0.00% avg local)
- Median home value: $425,000
- Median household income: $98,461
- Effective property tax rate: 1.02%
- Avg auto insurance: $1,640/yr
Frequently Asked Questions
Is it worth refinancing in Maryland?
It depends on your break-even: closing costs divided by monthly savings. If you'll keep the home past break-even, refinancing usually pays off.
What are typical closing costs in Maryland?
Refinance closing costs generally run 2-5% of the loan, or roughly $10,200 on a median Maryland loan.