Annapolis, Maryland Mortgage Refinance Interest Rates
Discover the latest mortgage interest rates to make informed decisions about your home refinancing.
Interest rate over time in Annapolis, Maryland
Timeframe
Daily refinance averages provided by the Mortgage Research Center.
Compare mortgage rates in Annapolis, Maryland
Showing results for: 15-Year Fixed refinance offers for Single Family or Townhome properties in MD, total loan amount of $228,000.
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Rate data provided by RateUpdate.com. Displayed by Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Rates and fees are estimates and subject to change without notice. Payments do not include taxes and insurance premiums. Actual payments may be higher. Not all lenders participate in this marketplace. Loan availability and terms may vary by state and lender. Lender offers, including badges like “Lowest APR” or “Lowest Payment,” are based only on results displayed here and may not reflect the absolute lowest offer available in the market. Rate and product details
Should You Refinance in Annapolis?
14.1% annual appreciation
· Data updated 4/5/2026With Annapolis's hot housing market and 14.1% annual appreciation, homeowners may have built significant equity. This could make refinancing particularly attractive, potentially eliminating PMI or accessing equity for home improvements.
Local Market Context
Annapolis, Maryland homes have a median value of $541,200, with 14.1% year-over-year appreciation. Homeowners have likely built substantial equity, creating opportunities for cash-out refinancing or eliminating PMI. Strong appreciation means better loan-to-value ratios when refinancing.
Estimated Monthly Payment in Annapolis
Based on the median home price of $541,200 with 20% down at 6.49% (30-year fixed):
| Principal & Interest | $2,734.9/mo |
| Property Tax | $492/mo |
| Homeowner's Insurance (est.) | $125/mo |
| Estimated Total (PITI) | $3,352/mo |
Rate Savings Scenarios for Annapolis
How your monthly principal & interest payment changes at different rates (20% down on $541,200 median home):
| Interest Rate | Monthly P&I | vs. Current Rate |
|---|---|---|
| Current rate (6.49%) | $2,735 | — |
| 5.99% (–0.5%) | $2,594 | –$141/mo |
| 5.49% (–1.0%) | $2,457 | –$278/mo |
Down Payment Impact in Annapolis
Monthly principal & interest at 6.49% for different down payments on the $541,200 median home:
| Down Payment | Loan Amount | Monthly P&I |
|---|---|---|
| 10% down ($54,120) | $487,080 | $3,077 |
| 15% down ($81,180) | $460,020 | $2,906 |
| 20% down ($108,240) | $432,960 | $2,735 |
Property Tax Impact
Property taxes in Annapolis, Maryland average 1.09% of home value, which is moderate compared to the national average. When refinancing, it's important to remember that your total monthly payment includes these taxes (approximately $492 per month for a median-valued home). A lower interest rate might reduce your principal and interest payment, but your property tax portion stays the same.
Maryland ranks 21st (average) nationally for property taxes, which directly affects your total monthly payment when buying or refinancing.
Cost of Living Context
Annapolis's cost of living is 2% below the national average (index: 98), meaning housing costs tend to run lower than typical — which may allow for higher purchasing power when buying or refinancing.
Calculate Your Exact Refinance Savings
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Use Refinance CalculatorSmart Refinancing Strategies for Annapolis Homeowners
Hey Annapolis! The real estate market here offers steady, reliable, and highly desirable growth. This stability is a huge advantage when you are planning your financial future and calculating your equity.
FHA to Conventional & Your LTV
Annapolis attracts many professionals who often start with FHA or VA loans to break into the market. Refinancing relies heavily on your Loan-to-Value (LTV) ratio.
With your home value growing a healthy 14.1%, you are building solid equity. Once your market growth pushes your LTV under 80%, refinancing from an FHA loan into a standard Conventional loan permanently removes your FHA mortgage insurance premium.
Property Tax Tip for Annapolis Homeowners
Because housing costs here are higher but manageable, a "cash-out refinance" is incredibly popular. You can use your built-up equity to fund necessary home renovations or consolidate debt.
Hero & Housing Programs for Annapolis
Take advantage of the Maryland Mortgage Program (MMP). Their state-backed programs offer pathways to better financing. If you have student loans, look into state programs that allow you to roll debt consolidation into a secure, low-rate mortgage.
With 14.1% Annual Home Value Growth in Annapolis, When Should I Refinance?
Annapolis's strong 14.1% appreciation rate creates excellent refinancing opportunities. If your home has appreciated significantly since purchase, you likely have substantial equity gains. Refinance when you can lower your rate by at least 0.75-1%, eliminate PMI if your loan-to-value ratio dropped below 80%, or tap into equity for high-value improvements. In hot markets like Annapolis, many homeowners build enough equity to refinance within 2-3 years of purchase, especially if they bought with less than 20% down.
How Much Equity Do I Need to Refinance My Annapolis Home?
Most lenders require at least 20% equity (80% loan-to-value) for conventional refinancing, though some programs allow refinancing with as little as 5% equity. Given Annapolis's median home value of $541,200, that means you'd need approximately $108,240 in equity. With 14.1% annual appreciation, homeowners who purchased 2-3 years ago have likely crossed the 20% threshold through both appreciation and principal paydown, making now an ideal time to eliminate PMI and secure better rates.
Should I Do Cash-Out Refinancing in Annapolis's Hot Market?
Cash-out refinancing can be strategic in Annapolis where homes are appreciating 14.1% annually. If you've built substantial equity, you can access cash while still maintaining 20% equity to avoid PMI. Popular uses include high-ROI home improvements (kitchen, bath remodels), debt consolidation at lower interest rates, or investment opportunities. However, calculate your new monthly payment including the 1.09% property tax rate on your current home value. Cash-out refis typically have slightly higher rates than rate-and-term refinances, so ensure the benefits outweigh the costs.
What Are Typical Refinancing Closing Costs in Annapolis?
Refinancing closing costs in Annapolis typically range from 2-5% of your loan amount, covering appraisal fees ($400-600), title insurance, origination fees (0.5-1% of loan), and other lender charges. On a median-priced home of $541,200, expect to pay approximately $12,989 in closing costs. Calculate your break-even point by dividing closing costs by monthly savings. If you save $200/month with $12,989 in costs, you break even in about 65months. Consider no-closing-cost refinances if you don't plan to stay long-term.
How Does Annapolis's 1.09% Property Tax Rate Affect My Refinance Decision?
Property taxes in Annapolis average 1.09% of home value, meaning approximately $492/month on a median-valued home. When you refinance to a lower rate, remember that your principal and interest payment decreases, but your property tax portion remains constant. If you're refinancing a $541,200home from 7% to 6%, you'll save about $140/month on P&I, but your total PITI payment reduction will be less once you factor in the unchanged property tax component. Focus on the total payment savings, not just the rate reduction.