Down Payment & Closing Costs - Live Baltimore (2024)

FAQs

What are the average closing costs in Baltimore Maryland? ›

Average closing costs for Maryland range from 2.5% to 4% of the total loan amount. The average amount is about $3,864 for a $200,000 mortgage. That is just less than 2% of the loan amount and slightly more than the national average of $3,160.

Mortgage lenders in Maryland generally ask home buyers to contribute 20% of the purchase price as a down payment. However, if you qualify for Veterans Affairs (VA) loan or a Federal Housing Administration (FHA) loan, your down payment may be as low as 3.5% or even 0%.

Yes — both buyers and sellers pay closing costs in Maryland, as is the case in any state. Most of a homebuyer's costs typically relate to the mortgage loan, including fees for things like loan application and origination, a credit check and a professional appraisal.

Baltimore First Time Homebuyers Incentive

Baltimore City's Housing Department's First Time Homebuyer Incentive is a $10,000 five-year forgivable loan to first-time homebuyers to assist with downpayment and settlement expenses. Homebuyer's family income must be 80 percent or below the area median income.

Many Homebuyers In The State Pay For A Property Within That Price Range. A Buyer Of A Home Within The $300,000 To $400,000 Price Range Should Be Prepared To Pay Closing Costs Between $10,018 And $17,810 After Taxes. In General, The Percentage Of The Closing Cost To Home Sale Price Is From 3.34% To 4.4%.

There's no set number when it comes to closing costs. Typically, homebuyers pay around 2 percent to 5 percent of the home's sale price in closing fees, while sellers pay slightly more — between 6 percent and 10 percent of the home's price — when you factor in real estate agent commissions.

A $3,500 per month mortgage in the United States, based on our calculations, will put you in an above-average price range in many cities, or let you at least get a foot in the door in high cost of living areas. That price point is $550,000.

To purchase a $200,000 house, you need a down payment of at least $40,000 (20% of the home price) to avoid PMI on a conventional mortgage. If you're a first-time home buyer, you could save a smaller down payment of $10,000–20,000 (5–10%). But remember, that will drive up your monthly payment with PMI fees.

If you bring the national average down payment of 6% to closing and have a 7.69% rate on a 30-year fixed mortgage, that's just shy of $1,700 a month in principal and interest. What does $1,500 buy with those same terms? About $225,000 worth of house, give or take.

The real estate agent commissions are paid by the home seller. Sellers account for this commission in the selling price. If a seller wants to sell their home for $400,000 and must pay a 6% real estate commissions in Maryland, they'll list it for $424,000 as 6% of $24,000 is real estate agent commission in Maryland.

What are the disadvantages of the seller paying closing costs? ›

Lower Net Proceeds: The most apparent disadvantage for the seller is the reduction in net proceeds from the sale. Closing costs can include a variety of fees, taxes, and other expenses, which can add up to a significant amount. By covering these costs, the seller receives less money from the transaction.

Who pays for title insurance? Most often the home buyer pays for both the owner's policy and the lender's policy. The premium is included as part of the closing costs. In many states (MD included) the cost for a loan policy is a nominal fee added to the owner's policy premium.

The Settlement Expense Loan Program (SELP) provides assistance to low and moderate income, first-time homebuyers. The County can lend up to $10,000 to income-eligible purchasers to help pay closing costs required in the purchase of an existing home within the designated Community Conservation Areas of Baltimore County.

That's why the Department of Housing and Community Development (DHCD) is requiring applicants to its newly approved “Fixed Pricing Program” to provide proof they can spend at least $90,000 to renovate a home after purchasing it for just a dollar. The goal is to rehab some of the city's thousands of vacant homes.

Purchase Information: Properties purchased for use as a primary residence will sell for $1!! Applicants must provide proof of available funding of no less than $90,000 to complete the renovations and are subject to the application vetting process. Applicants are required to pay a $100 application fee.

Baltimore, MD housing market

In May 2024, the median listing home price in Baltimore, MD was $224.9K, trending up 14.2% year-over-year. The median listing home price per square foot was $165. The median home sold price was $174.4K.

Seller closing costs: Closing costs for sellers can reach 8% to 10% of the sale price of the home. It's higher than the buyer's closing costs because the seller typically pays both the listing and buyer's agent's commission — around 6% of the sale in total.

Closing costs for FHA loans usually vary by state and lender. In Maryland, closing costs range between 2% and 5% of the loan amount. For a typical homebuyer in Maryland, FHA loans average $14,721 in closing costs.