Maryland Real Estate Insights

What is the difference between a mortgage broker and a bank?

According to the CFPB, mortgage loan officers often work for one specific lender, and mortgage brokers typically work with multiple lenders. A bank's loan officer can only offer that bank's programs and pricing. A broker takes one application and compares offers from several wholesale lenders, then the chosen lender funds the loan.

Credit unions and non-bank mortgage companies are direct lenders too. See our older guide, Credit Unions vs. Banks for Mortgages, and What Is a Mortgage Broker?

How do mortgage brokers and bank loan officers get paid?

The CFPB explains that the person who arranges your mortgage is usually paid a loan-specific fee or commission, paid by you or by the lender. Federal law prohibits that commission from varying based on the terms of your mortgage, though lenders can pay a salary, a fixed amount per loan, a percentage of the loan amount or a combination.

There is one more protection worth knowing. Under the CFPB's loan originator compensation rule, if you pay a loan originator directly for your loan, no loan originator may also receive compensation from another party for that same transaction. Before you apply, ask every broker or loan officer: "How are you paid on my loan, and who pays you?"

What are the pros and cons of a mortgage broker vs. a bank?

What does a 0.25% rate difference cost?

Here is why shopping matters. Take an Anne Arundel County purchase at the September 2026 median sales price of $503,000 (Maryland REALTORS) with 20% down, for a $402,400 loan. Compare Freddie Mac's 30-year average of 7.24% with a quote 0.25 point lower at 6.99%. The 6.99% figure is a hypothetical example of what shopping might find, not a quoted rate.

That savings only counts if the lower rate does not come with higher points or fees. That is why you compare the full Loan Estimate, not a quoted rate. Where rates may go next is covered in our 2026 Maryland mortgage rate outlook, and why a Fed move does not set your rate is in The Fed Raised Rates: Does That Mean Mortgage Rates Are Going Up?

How do you compare a broker's offer with a bank's?

• Get Loan Estimates on the same day for the same loan amount, term and lock period.
• Check page 1 and page 3. The CFPB notes the interest rate is on page 1 under "Loan Terms" and the APR is on page 3 under "Comparisons." The APR reflects the rate plus points, mortgage broker fees and other charges.
• Compare points and lender credits on page 2 of the Loan Estimate, and ask how each option changes your cash to close.
• Verify licensing. Look up any broker, lender or loan officer on NMLS Consumer Access before you share documents.
• Ask about timelines. In a competitive Crofton or Odenton offer, a lender that can close on time and communicate with the listing agent can matter as much as the rate.

Which is better for a VA loan near Fort Meade?

Either can work. What matters is whether the loan officer closes VA loans often and understands PCS timelines, entitlement and the VA appraisal process. Ask a broker which VA lenders they place loans with, and ask a bank whether it offers VA loans directly. Then compare VA and conventional Loan Estimates side by side. Current homeowners comparing ways to tap equity can read HELOC vs. Home Equity Loan, and owners 62 and older can review reverse mortgage pros and cons. Sellers weighing what buyers can afford should see What Higher Mortgage Rates Mean for Maryland Home Sellers.

Related reading from The Scott Smolen Team

• Will Mortgage Rates Go Down? 2026 Maryland Mortgage Rate Outlook
• Reverse Mortgage Pros and Cons for Maryland Homeowners 62 and Older
• HELOC vs. Home Equity Loan: The Difference, Pros and Cons
• The Fed Raised Rates: Does That Mean Mortgage Rates Are Going Up?
• What Higher Mortgage Rates Mean for Maryland Home Sellers

How does a remote purchase compare with buying in person?

How do virtual tours work when you cannot visit?

Photos and 3D tours are marketing; a live video tour with your own agent is due diligence. Ask your agent to:

• Walk every room, open closets and cabinets, and point the camera at ceilings, floors and windows.
• Run the faucets, check water pressure and show the age labels on the furnace, air conditioner and water heater.
• Step outside to show the yard, drainage, the roof from the ground and the view from each side.
• Stand on the street at rush hour so you can hear traffic, and drive your likely commute route to the gate.

NAR's consumer guide notes that buyers working with a REALTOR are asked to sign a written buyer agreement before touring, in person or virtually, and that its terms are negotiable.

Why does a trusted local agent matter more when you buy remotely?

When you cannot see the home, your agent is your eyes and ears. Look for someone who knows the area around Fort George G. Meade, answers on video quickly, and is willing to tell you what the camera does not show, such as a smell, a slope or a busy road. The Fort Meade Housing Services Office offers off-post counseling and referrals, including listings of local real estate brokers, at 301-677-7748. Military OneSource, the Department of Defense support program, offers PCS planning help at 800-342-9647.

For local context, our Fort Meade area homes guide covers nearby towns and housing allowance basics.

How do inspections work if you cannot be there?

Keep the inspection even if you love the video. HUD's home inspection notice explains that an appraisal estimates value for the lender and does not replace an inspection, that FHA does not inspect homes, and that an inspection happens only if you arrange one. Asking early may let you make the contract contingent on the results. HUD also notes that the EPA and the Surgeon General recommend radon testing for all houses.

• Have your agent attend and join the walk-through portion by video.
• Ask the inspector for a sample report and their standards of practice before you hire them.
• Ask for photos of every defect so you can get repair estimates remotely.
• Add specialized checks when relevant, such as a sewer camera, chimney or well and septic.

Can you close on a Maryland home remotely?

Often, yes. Maryland's notary law, State Government Article, Section 18-214, allows a notary public located in Maryland to perform a notarial act using communication technology for a remotely located individual when the notary:

• knows the signer or verifies identity, for example by remote presentation of an ID, credential analysis and identity proofing;
• is reasonably able to confirm the record is the same one the signer signed; and
• creates an audio-visual recording of the notarial act.

Under Maryland regulations (COMAR 01.02.08.07), a notary must notify the Secretary of State before performing remote notarial acts and must keep each recording for at least 10 years. The Secretary of State maintains the list of authorized remote online notary vendors. Signers located outside the United States face added conditions under the statute.

The CFPB says your lender must give you the Closing Disclosure at least three business days before you close, which gives remote buyers time to review it. Protect your funds: the CFPB warns that scammers send fake wiring instructions by email, so verify the account name and number by phone with a number you already trust.

How do VA loans work for a PCS move to Fort Meade?

According to VA.gov, you may be eligible for a VA-backed purchase loan if you qualify for a Certificate of Eligibility (COE), meet VA and lender standards for credit and income, and will live in the home you buy. Active-duty service members request a COE with a statement of service signed by their commander, adjutant or personnel officer. A VA purchase loan often offers:

• No down payment, as long as the sales price is not higher than the home's appraised value.
• No private mortgage insurance or FHA mortgage insurance premiums.
• Seller-paid closing costs; VA limits seller concessions to no more than 4% of the home's reasonable value.

Unless you qualify for an exemption, such as receiving VA compensation for a service-connected disability, a VA purchase loan generally has a one-time funding fee. You can pay it at closing or finance it into the loan. The percentages below apply to the loan amount, not the purchase price. Financing the fee increases your loan balance and the interest you pay.

On a purchase loan, VA allows only the funding fee to be financed; other closing costs are paid at closing (or by the seller, within VA's limits). Before you set a closing date, ask your lender how VA's occupancy rules apply to your report date and to who will live in the home before you arrive.

A sight-unseen buyer's checklist

First purchase? Our Maryland First-Time Home Buyer Guide covers budgets, Maryland Mortgage Program assistance and Anne Arundel County payment math. Selling a home elsewhere at the same time? See buying and selling a home at the same time. Comparing lenders? Read Mortgage Broker vs. Bank: Which Is Better for Maryland Homebuyers? and our 2026 Maryland mortgage rate outlook.

What is the difference between a HELOC and a home equity loan?

The CFPB puts it simply: a home equity loan is a specific amount of money borrowed against your equity, and a HELOC is a line of credit, like a credit card, borrowed against your equity. If you already have a mortgage, either one is a second mortgage that you pay in addition to your first.

How much equity can you borrow against?

Your equity is what your home is worth minus what you owe. The amount you can borrow and your rate depend on your income, credit history and the home's market value. The FTC notes that many lenders prefer that you borrow no more than 80% of the equity in your home.

What do the payments look like?

Freddie Mac does not publish average HELOC or home equity loan rates. To show the math with a published number, we use its 15-year fixed average of 6.68% (October 22, 2026). Home equity quotes are set by each lender and will differ, and a HELOC rate can change over time.

What are the pros and cons of each?

Should you use home equity or a cash-out refinance?

A cash-out refinance replaces your whole first mortgage with a bigger one at today's rate. The MBA reports that only 23% of borrowers hold mortgage rates over 6%, so for most owners a refinance at a rate in the 7% range would raise the rate on their entire balance. A second loan leaves the low-rate first mortgage alone and charges today's pricing only on the new money. Veterans near Fort Meade and Odenton can ask a lender to compare a home equity loan with a VA cash-out refinance before deciding.

Wondering whether rates will fall soon enough to change the math? See our 2026 Maryland mortgage rate outlook. For why Fed moves can matter for short-term borrowing, read The Fed Raised Rates: Does That Mean Mortgage Rates Are Going Up? Owners 62 and older should also weigh reverse mortgage pros and cons.

What protections do you have when you open one?

• Three-day right to cancel. When your main home is the collateral, the FTC explains that you can generally cancel a home equity loan or HELOC within three business days, for any reason and without penalty. It does not apply to a vacation or second home.
• HELOC disclosures. The lender must disclose the APR, the payment terms for the draw and repayment periods, its fees, other parties' fees, any variable-rate features, and give you a HELOC brochure.
• Stability if you pay as agreed. The lender generally may not close your HELOC, demand faster repayment or change its terms, though it can freeze or reduce the line in specific situations.
• Housing counseling. If you are struggling with your mortgage, the CFPB suggests talking with a HUD-approved housing counselor first; call (855) 411-2372.

Planning to sell in the next few years? A home equity loan or HELOC balance generally has to be paid off from your proceeds at settlement. Our seller guide covers how today's rates affect pricing, and Mortgage Broker vs. Bank explains how to shop the loan itself.

Related reading from The Scott Smolen Team

• Will Mortgage Rates Go Down? 2026 Maryland Mortgage Rate Outlook
• Reverse Mortgage Pros and Cons for Maryland Homeowners 62 and Older
• Mortgage Broker vs. Bank: Which Is Better for Maryland Homebuyers?
• The Fed Raised Rates: Does That Mean Mortgage Rates Are Going Up?
• What Higher Mortgage Rates Mean for Maryland Home Sellers

What are the steps to buying a home in Maryland?

Every purchase is different, but most first-time buyers move through these eight steps in roughly this order.

1. Set your budget and check your credit

Add up your savings, monthly debts and income. Lenders look at your debt-to-income ratio, which the CFPB defines as all of your monthly debt payments divided by your gross monthly income. Different loans and lenders set different limits.

2. Take a homebuyer education class

If you plan to use the Maryland Mortgage Program, an approved class is required before approval, and the certificate must be issued within 12 months before settlement. Classes can also point you to assistance you did not know about.

3. Get preapproved and compare lenders

A preapproval tells you what a lender is willing to lend and makes your offer more credible. After you apply, a lender must give you a Loan Estimate within three business days, so you can compare rates and costs side by side. Our guides to the 2026 Maryland mortgage rate outlook and Mortgage Broker vs. Bank: Which Is Better for Maryland Homebuyers? can help you prepare.

4. Choose a buyer's agent

Since August 17, 2024, buyers working with a REALTOR are asked to sign a written buyer agreement before touring a home, in person or virtually. NAR notes these agreements, including compensation, are negotiable. Read it carefully and ask questions before you sign.

5. Tour homes and make an offer

Your agent pulls comparable sales, helps you set a price and terms, and explains deposits and contingencies. In a competitive pocket, terms can matter as much as price.

6. Inspect the home and complete the appraisal

HUD reminds buyers that an appraisal estimates value for the lender and is not a home inspection. A home inspection happens only if you arrange one, and asking early may let you make the contract contingent on the results.

7. Get final loan approval and review your Closing Disclosure

Your lender must give you the Closing Disclosure at least three business days before you close. Compare it with your Loan Estimate and ask about anything that changed.

8. Do a final walkthrough and settle

Confirm the home's condition, then sign at settlement. Before wiring any money, verify the instructions by phone with a number you already trust. The CFPB warns that scammers send fake wiring instructions by email.

A printable buying-a-home checklist

Print this page or save it as a PDF and check off each item as you go.

How much house can I afford in Anne Arundel County?

Two numbers anchor the math. Maryland REALTORS reports, from Bright MLS data, that Anne Arundel County's median sale price was $503,000 in September 2026, up 2.4% from $490,990 a year earlier. Freddie Mac's Primary Mortgage Market Survey put the 30-year fixed average at 7.32% as of October 22, 2026. Here is what that median price costs each month at different down payments.

These figures are principal and interest only, use a national average rate for borrowers with strong credit and 20% down, and assume a 30-year fixed loan. Your quote can be higher or lower. For a fuller monthly budget, see our true cost of owning a home in Anne Arundel County.

How can I save for a down payment faster?

NAR's 2025 Profile of Home Buyers and Sellers found that first-time buyers most often used personal savings (59%), followed by financial assets such as a 401(k) or stocks (26%) and gifts or loans from family and friends (22%). Strategies that help:

• Know your real target. HUD says FHA's minimum required investment is 3.5% in most cases, and Fannie Mae's HomeReady allows as little as 3% down. Your target may be smaller than you think, but plan for closing costs too.
• Automate it. Send a set amount to a separate savings account each payday so the money is out of sight.
• Use gifts the right way. HUD notes the FHA minimum investment can come from your own funds, gifts, second mortgages and grants through assistance programs. Ask your lender how gifts must be documented before money moves.
• Layer in assistance. Maryland Mortgage Program loans, MMP Partner Match funds, employers, builders and local governments may all offer help (see the next section).
• Clear student debt with SmartBuy. Maryland SmartBuy can pay off up to 15% of the purchase price (maximum $25,000) in qualifying student debt at closing, as a zero-interest loan forgiven after 5 years in the home.
• Do not drain everything. Keep a cash cushion after closing. Note that MMP eligibility can be affected if liquid assets exceed 20% of the purchase price.

Once you own, equity can become your next savings engine. Our post on how first-time homeowners can build wealth with real estate explains how.

What down payment assistance is available through the Maryland Mortgage Program?

The Maryland Mortgage Program (MMP) is run by the Maryland Department of Housing and Community Development (DHCD). It offers 30-year fixed-rate loans through approved lenders, and most of its products include down payment assistance. You generally must occupy the home as your primary residence, not own other residential property, complete homebuyer education and meet income, credit score and purchase price limits.

The deferred assistance loans carry no monthly payment, but they become due when the first mortgage ends, for example when you sell, refinance or pay off the loan. A $450,000 first mortgage with a 3% assistance loan, for example, would come with $13,500 of deferred assistance.

Anne Arundel County is a partially targeted county, so the limits depend on the address. MMP's online mapper shows whether a property is in a Targeted Area, and an MMP-approved lender can confirm which products you qualify for.

What should first-time buyers know before making an offer?

If you already own and are moving up, see buying and selling a home at the same time. Buying from out of state or on PCS orders? Read Buying a House Sight Unseen in Maryland. Homeowners thinking about equity can compare options in HELOC vs. Home Equity Loan: The Difference, Pros and Cons and Reverse Mortgage Pros and Cons for Maryland Homeowners 62 and Older.

What are mortgage rates today?

Freddie Mac's Primary Mortgage Market Survey (PMMS) is the most widely cited weekly average. For the week ending October 22, 2026, the 30-year fixed averaged 7.32%, down from 7.40% the prior week, and the 15-year fixed averaged 6.68%, down from 6.71%. A year earlier, the 30-year averaged 6.19% and the 15-year averaged 5.44%.

In other words, the 30-year average has climbed about 1.3 percentage points from its February low, and nearly half of that rise (0.61 point) came after early September. The PMMS reflects borrowers with good to excellent credit, a 20% down payment and a home purchase loan on an owner-occupied single-family home, so your own quote can be higher or lower.

Are mortgage rates expected to drop?

Not meaningfully, according to the two forecasts we track. Both were published in October 2026 and both are built on Freddie Mac's 30-year rate.

Fannie Mae notes that its interest rate forecasts are based on rates as of September 30, 2026, before the early October run-up. The MBA expects rates to "come down from their recent peaks" but to stay on a higher path than it previously forecast, and its table shows the 30-year near 7.0% by the end of 2028. Forecasts change every month, so treat these as the current best estimates, not promises.

Will mortgage rates go down in 2026?

With about ten weeks left in the year, neither forecast calls for a drop before year-end. Fannie Mae puts the fourth-quarter 2026 average at 7.4% and the MBA at 7.3%, compared with a first-quarter 2026 average of 6.1% in both forecast tables. A sharp drop would likely require a surprise, such as much cooler inflation data or a big rally in the bond market.

The Federal Reserve's September rate hike made headlines, but the Fed does not set mortgage rates directly. Thirty-year rates follow the bond market, inflation expectations and the economic outlook. We explain that in The Fed Raised Rates: Does That Mean Mortgage Rates Are Going Up?

When will mortgage rates drop?

Nobody knows the date, and anyone who promises one is guessing. Based on the October 2026 forecasts, the MBA sees only a gradual slide (7.2% through most of 2027, 7.1% in late 2027), while Fannie Mae sees rates holding near 7.5% through 2027. What to watch each month:

• The weekly Freddie Mac PMMS release every Thursday at 12 p.m. ET.
• Monthly inflation reports and the 10-year Treasury yield, which longer-term mortgage rates tend to track.
• Each new Fannie Mae and MBA forecast. We update this page when they change.

What does a rate change mean for a Maryland mortgage payment?

Here is a real Anne Arundel County example. Maryland REALTORS reports the county's September 2026 median sales price at $503,000. With 20% down ($100,600), the loan is $402,400. The table shows principal and interest only; taxes, insurance and any HOA dues are extra.

The takeaway: the MBA's late-2027 forecast would save about $59.95 a month on this loan. That is real money, so weigh it against what could happen to prices and your rent while you wait. Going all the way back to the 2026 low would save about $356.79 a month, but neither forecast expects that.

How can you get the best mortgage rate today?

The "best mortgage rates today" are the ones quoted to you, on the same day, for the same loan. A few steps help in any market:

• Compare at least two or three Loan Estimates on the same day. Rates change daily, so same-day quotes are the only fair comparison. Ask each lender for a Loan Estimate so you can compare costs.
• Look at the APR and the points, not just the rate. A lower rate that costs two points may not be the better deal if you plan to move or refinance.
• Protect your credit and down payment. The PMMS average reflects strong credit and 20% down; weaker credit or less down usually prices higher.
• Ask about VA loans if you serve or served. We often work with VA buyers near Fort Meade, Odenton and Crofton. Compare VA quotes with conventional quotes from the same lender.
• Already own a low-rate home? Tapping equity with a second loan may beat a cash-out refinance. Ask a qualified lender to explain home equity loans, HELOCs, and any age-based mortgage options that may apply.

What do higher rates mean for Anne Arundel County buyers and sellers?

Higher rates have slowed sales, but prices are still edging up. Maryland REALTORS' September 2026 numbers (Bright MLS data) for Anne Arundel County:

Buyers have more choices and a bit more time than a year ago. Sellers can still do well, but pricing and presentation matter more. Sellers should read What Higher Mortgage Rates Mean for Maryland Home Sellers.

Related reading from The Scott Smolen Team

• The Fed Raised Rates: Does That Mean Mortgage Rates Are Going Up?
• What Higher Mortgage Rates Mean for Maryland Home Sellers