Mortgage lender closing cost rankings in Maryland (2025)

Maryland is an attorney state for real estate closings, meaning a licensed attorney must be present or oversee the settlement process. The state uses deeds of trust as the primary security instrument, though mortgages are also used. Foreclosure in Maryland is primarily judicial, requiring court involvement, which generally extends the timeline compared to non-judicial states. Maryland imposes a recordation tax and a state transfer tax on home sales; the transfer tax rate is 0.5% of the purchase price, with first-time homebuyers receiving a partial exemption. Counties also levy their own recordation and transfer taxes, which vary significantly and can meaningfully affect total closing costs. Title insurance in Maryland operates under a prior-approval rate system, meaning insurers must file rates and receive approval from the Maryland Insurance Administration before using them. Maryland does not have broad statutory prepayment penalty prohibitions beyond federal rules for most loan types. The Maryland Commissioner of Financial Regulation oversees state-chartered lenders and mortgage brokers, providing a consumer complaint channel for borrowers.

Conventional loans dominate Maryland's purchase market, accounting for 65.9% of 2024 originations (35,510 loans) at a median rate of 6.625%, reflecting the state's relatively high home prices and concentration of higher-income borrowers. FHA loans represent a meaningful 20.7% share (11,132 loans), consistent with demand from first-time and lower-down-payment buyers in more affordable corridors. VA loans make up 12.7% of volume (6,857 loans), driven by proximity to major military installations including Fort Meade, Joint Base Andrews, and the Naval Academy. USDA loans are minimal at 0.6% (350 loans), reflecting Maryland's largely suburban and urban character.