Find the Best Mortgage Lenders in Baltimore, MD

Different types of home loans in Baltimore

Buying a house is a complicated process, but partnering with a reputable lender can save you a lot of time, money and headaches. Your lender plays a huge role in the homebuying process by deciding how much you pay over the course of your mortgage. Because lenders are able to set their own rates and terms for approval and not all offer the same mortgage types, it’s important to compare a few lenders before settling on one.

Your lender can help you navigate your mortgage options to find one that not only makes sense for your situation but offers you the right terms and conditions, as well. Here are the most common types of mortgages that Baltimore residents use:

• Conventional mortgages are a fairly common option here. Conventional home loans are typically offered by private lenders and often have higher interest rates and stricter lending requirements because they are not backed by a government agency.
• Government-insured mortgages are backed by government entities to protect the mortgage lender in case you fail to repay them. These are usually given to people who need help qualifying for conventional loans. Common examples include FHA loans from the Federal Housing Administration, USDA loans from the U.S. Department of Agriculture and VA loans from the Department of Veterans Affairs. Given Baltimore’s close proximity to Fort George G. Meade Army Base, VA loans are more common here than in some areas.
• Fixed-rate mortgages have a standard interest rate that never changes throughout the course of the loan. With fixed-rate home loans, your monthly payments stay pretty much the same throughout the loan’s term, except for when property taxes or insurance fluctuate.
• Adjustable-rate mortgages have interest rates that can change over time, usually increasing over the course of the loan. Each lender sets its own terms and conditions, so interest rate maximums and fees can vary greatly from mortgage to mortgage. While introductory rates are typically affordable, your total cost over the course of the loan can be hard to predict.
• Jumbo loans are a type of home loan for more expensive houses that can’t be purchased with conventional loans. At the time of publishing, jumbo mortgages are required for homes in Baltimore over $520,950. These types of loans are likely necessary in neighborhoods like Homeland or The Orchards.

Baltimore house prices

The median house price in Baltimore is $210,000, according to Redfin. Neighborhoods closest to Inner Harbor or near Loyola University Maryland and Notre Dame of Maryland University are more expensive than suburbs like Middle River or Dundalk, which have lower property costs. Some parts of Baltimore are still undergoing revitalization, so those areas are often more affordable, too.

Take a look at average prices in some Baltimore neighborhoods for reference:

• Dundalk: $143,315
• Homestead: $248,857
• Wyman Park: $279,165
• Ellicott City: $543,913

With a relatively low cost of living compared to other big cities, plus world-famous museums and attractions, Baltimore is becoming an attractive destination for many young families. Neighborhoods like Wyman Park and Homeland are popular with families who want to live in the city but still maintain a quaint neighborhood feel. For families who want to live outside city limits, Ellicott City and Highland are popular suburbs with good highway access and excellent school districts.

Baltimore home loan FAQ

Should I get a mortgage from a credit union in Baltimore?

Getting a mortgage through a credit union usually comes with lower fees and easier approval, but credit unions often have fewer options than larger, traditional lenders. Some credit unions may require membership, too.

How does mortgage refinancing work?

Refinancing is the act of taking out another loan to cover your current mortgage. Homeowners do this when rates are currently lower than when they took out their mortgage. Signing up for another loan with lower rates can save you money over the course of your mortgage.

Can you negotiate the interest rate on a mortgage?

Yes, you can negotiate the interest rate on a mortgage. Often, there’s not a lot of wiggle room on rates, but you may be able to get them lower just by talking to the lender. This is especially true for borrowers with good credit histories and solid finances.

What credit score do you need to get a mortgage in Baltimore?

It depends on the type of mortgage, but most home loans require a credit score of around 620. FHA loans are the biggest exception to this, with credit requirements as low as 500.

What is the average mortgage rate in Baltimore?

According to S&P Global, the average mortgage rates in Maryland fall between 2.6% and 3.22%. Your interest rate depends on a variety of factors, including your:

• Credit score
• Neighborhood
• Lender
• Type of loan

To find low rates, compare a variety of lenders and loan options to see which fit your needs. If you still can’t find a favorable rate, consider building your credit or finding a co-signer for your loan.