Buyer Closing Costs in Maryland: A Complete Guide for 2026
Buying a home in Maryland comes with various closing costs that buyers need to prepare for. These expenses can add up, so it's essential to understand what you'll owe at closing.
💡 Local Insight: Maryland's recordation tax is 0.5% of the loan amount, and the state transfer tax is 0.5% of the sales price—combined, buyers can expect to pay 1% of the purchase price in taxes at closing.
Common Buyer Closing Costs in Maryland
- Loan Origination Fees: Charged by the lender for processing your mortgage, typically 0.5%-1% of the loan amount.
- Title Insurance: Protects you and the lender from title disputes. Buyers usually pay for the lender's title insurance policy.
- Appraisal Fees: Required by lenders to assess the home's value, usually $300-$500.
- Home Inspection Fees: Optional but recommended, costing $300-$500.
- Prepaid Expenses: Includes property taxes, homeowners insurance, and prepaid interest.
- Recording Fees: Paid to the county to record the deed and mortgage.
Maryland Recordation & Transfer Taxes
Maryland charges both recordation tax (based on loan amount) and transfer tax (based on sales price):
- Recordation Tax: 0.5% of the loan amount (for mortgages over $50,000)
- Transfer Tax: 0.5% of the sales price (buyer pays, typically)
- State Transfer Tax: Additional 0.5% of sales price (varies by county)
Example: For a $500,000 home with a $400,000 mortgage:
- Recordation Tax (0.5% of $400K): $2,000
- Transfer Tax (0.5% of $500K): $2,500
- Total State/County Taxes: $4,500
How to Estimate Your Closing Costs
Use our Maryland Closing Cost Calculator to calculate buyer closing costs in Maryland based on your loan amount, location, title insurance needs, and settlement cost inputs.
Estimated Buyer Costs Example
For a $500,000 home with 20% down ($400,000 loan):
- • Loan Origination (1%): $4,000
- • Title Insurance (Owner's + Lender's): $2,000-3,000
- • Appraisal: $400-500
- • Inspection: $400-500
- • Recordation Tax: $2,000
- • Transfer Tax: $2,500
- • Prepaid Taxes/Insurance: $3,000-5,000
- • Estimated Total: $14,300 - $17,500
Frequently Asked Questions
Are closing costs negotiable in Maryland?
Some costs, like lender fees, may be negotiable. Shop around for the best rates.
Can I roll closing costs into my mortgage?
Some loans allow this, but it will increase your loan amount and monthly payments.
How much is title insurance in Maryland?
Title insurance typically costs 0.5%-1% of the home's purchase price.
When do I pay closing costs?
All closing costs are paid at the settlement table when the purchase is finalized.
Get Your Maryland Buyer Closing Cost Estimate
Contact Pruitt Title LLC for an accurate closing cost estimate for your Maryland home purchase.