Maryland Mortgage Calculator (with Maryland Property Taxes & Insurance)

Maryland's effective property tax rate sits close to the national average, but the state layers on something most other states don't: a recordation tax and a transfer tax due at closing, separate from the ongoing annual property tax modeled in a monthly PITI payment. This calculator focuses on the recurring monthly cost, principal, interest, an annual property tax estimate of 1.09% of purchase price, and a flat insurance placeholder, so it answers "what will I pay every month," while closing-cost items like recordation and transfer tax are one-time costs paid at settlement rather than monthly obligations.

This calculator combines a standard 30-year fixed-rate amortization schedule with a Maryland-specific property tax estimate and a flat monthly insurance placeholder to produce a full PITI (principal, interest, taxes, insurance) monthly payment rather than just the loan-only figure a bare mortgage calculator would show.

1. Down payment and loan principal. The down payment percentage is applied to the home price, and the remainder becomes the loan principal: $\text{Principal} = \text{Price} \times (1 - \text{Down\%})$.
2. Principal and interest. The loan principal is amortized over a fixed 360-month (30-year) term using $A = P \times \frac{i(1+i)^n}{(1+i)^n - 1}$, where $i$ is the monthly rate (annual APR divided by 12) and $n = 360$.
3. Property tax estimate. Maryland's statewide effective property tax rate is modeled at 1.09% of the home's purchase price, applied annually and divided by 12: $\text{Monthly Tax} = \text{Price} \times 0.0109 / 12$.
4. Insurance estimate. A flat $125 monthly placeholder represents a typical homeowners insurance premium.
5. Total monthly PITI. Principal and interest, monthly property tax, and monthly insurance are summed for the full housing payment.

The amortization schedule runs period by period across all 360 monthly payments using decimal-precision arithmetic, so the cumulative principal and interest figures reconcile exactly to the reported totals rather than drifting from rounding error over the full 30-year horizon.

Using the default scenario: a $380,000 home, 20% down, and a 6.5% APR 30-year fixed loan.

1. Down payment: $380,000 \times 20\% = \$76,000$.
2. Loan principal: $380,000 - \$76,000 = \$304,000$.
3. Principal and interest: amortizing $304,000 at 6.5% over 360 months yields a monthly payment of approximately $1,921.48.
4. Property tax: $380,000 \times 1.09\% / 12 = \$345.17$ per month.
5. Insurance: a flat $125 per month.
6. Total PITI: $1,921.48 + \$345.17 + \$125 = \$2,391.65$ per month.
7. Total interest over 30 years: amortizing $304,000 at 6.5% for 360 months produces roughly $387,700 in cumulative interest over the full term.

This monthly PITI figure does not include Maryland's one-time closing costs. At settlement, Maryland buyers typically also pay a state recordation tax and, depending on the county, a local transfer tax, both calculated as a percentage of the sale price or loan amount and due once at closing rather than as part of any monthly payment.

• County-level property tax variation. Maryland property tax rates and assessment practices differ by county, from Baltimore City's relatively high combined rate to lower rates in some suburban and rural counties. The 1.09% figure here is a statewide effective-rate approximation, not a county-specific number.
• The Maryland Homestead Tax Credit. This program caps the annual increase in taxable assessment for owner-occupied principal residences, which can meaningfully reduce the property tax bill for long-tenured homeowners in rising markets compared to a flat price-times-rate estimate.
• Recordation and transfer taxes at closing. Maryland charges a state recordation tax and, in many counties, an additional local transfer tax, both due once at settlement based on the sale price or loan amount. These are real, often substantial closing costs that are separate from the recurring monthly PITI figure shown here.
• PMI (private mortgage insurance). Down payments below 20% typically require PMI, which is not included in this calculator's output.
• HOA dues, ground rent (a distinct Maryland real property arrangement in some older jurisdictions), and other recurring costs specific to certain Maryland properties.

• Forgetting Maryland's recordation and transfer taxes when budgeting for closing. These one-time charges at settlement can add thousands of dollars beyond the monthly PITI payment modeled here and are frequently the single largest closing cost surprise for Maryland buyers.
• Assuming 1.09% applies evenly across every Maryland county. Actual county tax rates and municipal add-ons vary, so a home in one jurisdiction can carry a meaningfully different tax bill than an identically priced home elsewhere in the state.
• Ignoring PMI on lower down payments, which adds real monthly cost not captured in this calculator's base PITI output.
• Not checking for ground rent. Some older properties, particularly in and around Baltimore, are subject to a separate ground rent payment tied to historical land ownership arrangements, which is neither property tax nor part of a standard mortgage payment.
• Comparing Maryland PITI directly against a state with no comparable closing tax structure without separately budgeting for Maryland's recordation and transfer taxes as a one-time cash requirement at settlement.

• Maryland Department of Assessments and Taxation: County-level property tax rate data and the Homestead Tax Credit program.
• Comptroller of Maryland: State recordation tax and transfer tax rules applicable at real estate settlement.
• Consumer Financial Protection Bureau: PITI and mortgage disclosure guidance under Regulation Z and RESPA.
• Tax Foundation: Comparative state and local effective property tax rate rankings.