How Much House Can You Afford in Maryland? 2026 Rates & Down Payment Help

Before you fall in love with a listing, it helps to know what you can actually afford — and that number depends on more than just your income. Here’s how to think through it, what mortgage rates are doing right now, and real Maryland programs that can lower what you need upfront.

Where Mortgage Rates Stand Right Now

As of the week of October 15, 2026, Freddie Mac’s Primary Mortgage Market Survey puts the average 30-year fixed mortgage rate at 7.40% and the 15-year fixed at 6.71%.¹ Rates move week to week based on broader economic conditions, so treat this as a snapshot rather than a guarantee of what you’ll be quoted — your actual rate depends on your credit profile, down payment, loan type, and the specific lender.

Note: mortgage rates change frequently. If you’re reading this more than a few weeks after publication, ask your lender for today’s actual rate rather than relying on the figure above.

A Simple Framework for What You Can Afford

Lenders commonly use what’s known as the 28/36 rule as a starting reference point:

• 28% rule: your monthly housing payment (principal, interest, taxes, and insurance) generally shouldn’t exceed about 28% of your gross monthly income.
• 36% rule: your total monthly debt payments — housing plus car loans, student loans, credit cards, and other obligations — generally shouldn’t exceed about 36% of your gross monthly income.

This is a widely used industry guideline, not a hard rule or personalized financial advice — some loan programs qualify borrowers at higher ratios, and your own comfort level with a payment matters as much as what a lender will technically approve. The only way to get a real number specific to your situation is a conversation with a lender, who can factor in your actual credit, income, debts, and the loan program that fits you.

Maryland Mortgage Program: Real Down Payment Help

One of the biggest misconceptions among first-time buyers is that you need 20% down. In Maryland, the state-run Maryland Mortgage Program (MMP) offers several options that can meaningfully lower what you need upfront²:

• 1st Time Advantage $6,000 Loan: a $6,000, zero-interest, deferred loan toward your down payment and closing costs, for first-time buyers who meet MMP’s income and purchase price limits and complete a homebuyer education course. Repayment is deferred until you sell, refinance, or pay off the home.
• MMP Flex 6000: the same $6,000 zero-interest deferred structure, but open to repeat buyers as well as first-time buyers.
• Maryland SmartBuy 3.0: if student loan debt is what’s holding you back, this program can pay off up to 15% of your purchase price (capped at $25,000) toward qualifying student debt at closing, forgiven after five years of owner-occupancy — it requires at least $1,000 in student debt and a minimum 720 credit score.

These programs layer on top of a regular MMP first mortgage and have their own eligibility rules, income limits, and purchase price caps that can change — confirm current terms with an approved MMP lender before counting on a specific number. We cover the broader first-time buyer picture, including Howard County’s own local assistance, in our guide to first-time home buyer programs in Howard County.

Don’t Forget Closing Costs in Your Budget

Affordability isn’t just the monthly payment — it’s also what you need in cash at the table. Maryland’s transfer and recordation taxes alone typically add up to roughly 2–2.5% of the purchase price depending on your county, on top of title fees, lender fees, and prepaid items. Our full breakdown in closing costs in Maryland walks through exactly what to expect county by county.

Putting It Together

A realistic affordability picture combines four things: your actual income and debt (for the 28/36 framework), the rate you’ll actually qualify for, how much down payment assistance you might be eligible for, and what closing costs will cost you upfront. None of those are one-size-fits-all numbers — which is exactly why the next right step is usually a conversation with a lender and an agent together, not a mortgage calculator alone.

Frequently Asked Questions

What are mortgage rates right now in Maryland?

As of the week of October 15, 2026, Freddie Mac’s national average was 7.40% for a 30-year fixed mortgage and 6.71% for a 15-year fixed, though your actual rate depends on your credit profile and lender. Rates change weekly — ask your lender for the current number.

How much house can I afford based on my income?

A common starting framework is the 28/36 rule: housing costs at or below 28% of gross monthly income, and total debt payments at or below 36%. This is a general guideline, not personalized advice — a lender can calculate your actual number.

Do I need 20% down to buy a home in Maryland?

No. Many buyers put down far less, and Maryland’s Mortgage Program offers options like a $6,000 zero-interest deferred loan (1st Time Advantage or Flex 6000) specifically to help cover down payment and closing costs.

Can Executive Home Group help me figure out what I can afford?

Ryan Byrd and Rebeca Garcia regularly connect buyers with lenders who can run real numbers based on your actual financial picture, and help you understand which Maryland assistance programs you may qualify for.

Ready to find out what you can actually afford? Schedule a consultation with Ryan or Rebeca — we’ll help connect you with a lender for real numbers.

Sources:
1. The Mortgage Reports, Mortgage Rates Today, citing Freddie Mac’s Primary Mortgage Market Survey — week of October 15, 2026
2. Mortgage Research, Down Payment Assistance Programs in Maryland — accessed October 2026