Buying a home in Maryland costs more than just the down payment. Before you get the keys, you also pay closing costs. These are fees charged by your lender, the title company or closing attorney, the county clerk, and other parties to finalize the transaction.
For most Maryland buyers, closing costs run between 2% and 6% of the purchase price. On a $350,000 home, that is $7,000 to $21,000. The exact amount depends on your loan type, lender, transfer and recordation taxes, property taxes, and what you negotiate with the seller.
Maryland has a few rules that make closing costs different from other states. The state and counties charge transfer and recordation taxes when property ownership changes hands. Title insurance rates are filed with the Maryland Insurance Administration rather than fixed statewide. Closings are commonly handled by title companies or attorneys. And in many Maryland transactions, sellers commonly pay for the owner’s title insurance policy, although this is negotiable.
This guide breaks down every buyer closing cost in Maryland, explains who pays what, and shows you how to reduce what you owe at closing.
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Buyer Closing Costs
What Makes Maryland Closing Costs Different?
Maryland Charges Transfer and Recordation Taxes
Unlike states with no transfer tax, Maryland charges transfer taxes and county recordation taxes when real estate is sold. These taxes can significantly increase closing costs compared to states with lower recording fees.
The exact amount depends on the county and city where the property is located. In many Maryland counties, transfer and recordation taxes are split between the buyer and seller, but customs vary by location and contract terms.
For example, Baltimore City and Montgomery County often have different local tax structures than smaller counties.
First-Time Homebuyer Transfer Tax Exemptions
Maryland offers certain transfer tax exemptions for qualified first-time homebuyers purchasing a principal residence. In some transactions, first-time buyers may avoid paying the state transfer tax portion if eligibility requirements are met.
County-level exemptions or reduced taxes may also apply depending on location.
Title Insurance Rates Are Filed With the State
In Maryland, title insurance companies file their rates and forms with the Maryland Insurance Administration. Rates are regulated through filings rather than fixed by statewide law.
What buyers can compare between title companies: settlement fees, title search fees, attorney fees, communication quality, and service efficiency.
Closings Are Commonly Handled by Title Companies or Attorneys
Maryland real estate closings are commonly handled by title companies or attorneys. The settlement agent coordinates escrow, title review, lender funding, recording, and document preparation.
Settlement or closing fees are a major part of buyer closing costs in Maryland and can vary significantly between providers.
Property Taxes Can Be High in Some Counties
Maryland property taxes vary widely by county and municipality. Buyers in counties near Washington, D.C., such as Montgomery, Howard, or Prince George’s County, may face substantially higher annual tax bills than buyers in rural areas.
At closing, buyers often prepay several months of taxes into escrow, depending on the lender and closing date.
Who Pays Closing Costs in Maryland?
Most closing costs in Maryland are negotiable. But custom and contract terms usually determine who pays for what. Here is how costs are typically split:
What Buyers Usually Pay
| Buyer Expense | Typical Cost |
| Loan origination fee | 0.5%-1% of loan amount |
| Appraisal fee | $450-$800 |
| Home inspection | $400-$900 |
| Credit report and underwriting fees | $100-$1,000 combined |
| Survey fee, if required | $400-$900 |
| Settlement or closing fee | $700-$2,500 |
| Prepaid property taxes | Varies by county and closing date |
| Homeowners insurance, first year | $1,200-$3,500+ |
| Lender’s title insurance policy | Based on loan amount |
| Buyer share of transfer taxes | Varies by county |
| Recordation taxes | Varies by county and loan amount |
| Recording fees | $100-$300 |
| HOA transfer fees, if applicable | $200-$1,500+ |
| FHA/PMI mortgage insurance, if applicable | Varies |
What Sellers Usually Pay
| Seller Expense | Typical Responsibility |
| Realtor commissions | Seller |
| Owner’s title insurance policy | Seller, commonly |
| Existing mortgage payoff | Seller |
| Seller share of transfer taxes | Varies |
| HOA resale package | Seller |
| Property tax prorations | Shared/prorated |
| Repair credits negotiated in contract | Seller, if agreed |
Buyer vs Seller at a Glance
| Expense | Buyer | Seller |
| Loan fees | Yes | |
| Appraisal | Yes | |
| Home inspection | Yes | |
| Lender’s title policy | Yes | |
| Owner’s title policy | Yes, commonly | |
| Agent commissions | Yes | |
| Transfer taxes | Shared in many areas | Shared in many areas |
| Recordation taxes | Yes, commonly | Sometimes shared |
| Recording fees | Yes | |
| Property tax prorations | Shared | Shared |
All of these costs are negotiable. Sellers can offer to cover some buyer costs as a concession, especially in slower markets.
Who Pays Title Insurance in Maryland?
There are two title insurance policies in most Maryland home purchases. The seller typically pays for one. The buyer pays for the other.
| Policy | Who Typically Pays | Who It Protects | How Long It Lasts |
| Owner’s title policy | Seller, commonly | The buyer | As long as buyer or heirs own the home |
| Lender’s title policy | Buyer | The mortgage lender | Until the loan is paid off |
The owner’s policy protects the buyer if a title issue appears after closing, such as a lien, forged deed, recording error, unpaid taxes, or ownership dispute. The lender’s policy only protects the mortgage company, not the buyer.
Because Maryland title insurance rates are filed through insurer schedules, premiums vary by insurer, endorsements, and transaction size. Typical owner’s title insurance premiums often range between $3.50 and $5.50 per $1,000 of coverage.
| Home Purchase Price | Estimated Owner’s Policy Premium |
| $250,000 | $900-$1,400 |
| $350,000 | $1,200-$1,900 |
| $500,000 | $1,750-$2,750 |
| $750,000 | $2,600-$4,000 |
| $1,000,000 | $3,500-$5,500 |
Source: Maryland title insurance rate estimates based on regional industry averages and publicly available market data, 2026.
Ask the title company whether the property qualifies for a reissue rate. If a prior title insurance policy exists, buyers may qualify for discounted premiums.
Complete Breakdown of Buyer Closing Costs in Maryland
| Fee | What It Covers | Typical Cost |
| Loan origination fee | Lender’s charge for processing your mortgage | 0.5%-1% of loan amount |
| Appraisal cost | Confirms the home’s market value before the lender approves the loan | $450-$800 |
| Home inspection | Identifies structural or mechanical issues before closing | $400-$900 |
| Credit report fee | Lender’s cost to pull your credit file | $30-$75 |
| Underwriting fee | Lender’s review and approval of your loan file | $300-$900 |
| Survey fee | Confirms property boundaries and improvements | $400-$900 |
| Settlement or closing fee | Settlement company or attorney charge | $700-$2,500 |
| Prepaid property taxes | Months of property tax paid into escrow at closing | Varies by county |
| Homeowners insurance | First-year premium paid before closing | $1,200-$3,500+ |
| Lender’s title insurance | Protects the lender’s financial interest in the property | Based on loan amount |
| Transfer taxes | State and local taxes due at transfer | Varies by county |
| Recordation taxes | Tax on recording mortgage and deed documents | Varies by county |
| Recording fees | County charge to record deed and mortgage documents | $100-$300 |
| HOA transfer fee | Covers HOA documentation and account transfer | $200-$1,500+ |
| FHA/PMI mortgage insurance | Required for FHA loans and low-down-payment conventional loans | Varies |
Estimated Total Closing Costs by Home Price
| Home Price | Estimated Buyer Closing Costs | Range |
| $250,000 | $5,000-$15,000 | 2%-6% |
| $350,000 | $7,000-$21,000 | 2%-6% |
| $500,000 | $10,000-$30,000 | 2%-6% |
Cash buyers typically pay less because they skip most lender-related fees: no lender-required appraisal, no underwriting fee, no lender’s title policy, no mortgage-related recordation tax, and no mortgage insurance.
When Do Buyers Find Out Their Exact Closing Costs?
Loan Estimate
Within three business days of submitting a mortgage application, your lender must give you a Loan Estimate. This document shows your estimated closing costs, loan terms, interest rate, and monthly payment.
The Loan Estimate is not final. Fees can change before closing. But lenders are legally limited in how much certain fees can increase between the estimate and the final numbers.
Closing Disclosure
At least three business days before closing, your lender sends the Closing Disclosure. This shows the final version of every cost you will pay at closing.
Compare the Closing Disclosure to your Loan Estimate line by line. If a fee increases significantly, ask your lender to explain it before closing day. You have the right to ask questions and get answers.
How to Reduce Closing Costs in Maryland
Negotiate seller concessions. In slower markets, buyers can ask sellers to cover part of the closing costs. This is written into the purchase contract as a seller credit. In competitive markets, sellers are less likely to agree, but it is always worth asking.
Compare lenders. Transfer taxes and title insurance are not the only costs at closing. Origination fees, underwriting fees, lender credits, and discount points vary between lenders. Getting Loan Estimates from multiple lenders can save hundreds or thousands of dollars.
Ask about first-time homebuyer exemptions. Maryland first-time buyers may qualify for transfer tax exemptions or reduced taxes depending on the county and purchase type.
Close near the end of the month. Mortgage interest is paid in arrears, meaning buyers prepay interest from the closing date through the end of the month. Closing later in the month reduces prepaid interest.
Check for Maryland homebuyer programs. The Maryland Mortgage Program offers down payment and closing cost assistance for eligible buyers. Eligibility requirements vary by income, location, and loan type.
Ask about reissue rates. If a previous title insurance policy exists for the property, buyers may qualify for reduced title insurance premiums.
Compare settlement providers. Fees can vary significantly between title companies and attorneys. Ask for itemized estimates early in the process.
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Frequently Asked Questions
Maryland buyers typically pay 2% to 6% of the home’s purchase price in closing costs. On a $350,000 home, that equals approximately $7,000 to $21,000. Closing costs in Maryland can be higher than in many other states because of transfer taxes and county recordation taxes. The final amount depends on factors such as the mortgage loan type, lender fees, prepaid expenses, and negotiated contract terms.
Buyer closing costs in Maryland generally include lender fees such as loan origination charges, underwriting fees, appraisal costs, and credit report fees. Buyers also pay title-related expenses including the lender’s title insurance policy, title search fees, settlement charges, and escrow costs.
In many Maryland real estate transactions, the seller commonly pays for the owner’s title insurance policy, while the buyer pays for the lender’s title insurance policy required by the mortgage lender. However, these costs are negotiable and may vary depending on county customs and the terms outlined in the purchase agreement.
Yes. Maryland imposes both state and local transfer taxes, along with county recordation taxes. The exact amount varies depending on the property location, county regulations, purchase price, and whether the buyer qualifies for any available exemptions or tax reductions.
Yes. Many closing costs in Maryland are negotiable. Buyers can request seller concessions to help cover part of the closing expenses, compare multiple lenders for lower fees and better loan terms, and shop around for settlement providers offering competitive pricing and services. Negotiating these costs can help reduce the total cash needed at closing.
In some situations, yes. Certain lenders offer lender credits in exchange for a slightly higher mortgage interest rate, helping reduce upfront closing expenses. Some mortgage programs may also allow eligible closing costs to be financed into the loan balance. The availability of these options depends on the lender, loan type, property value, and down payment amount.
Some first-time homebuyers in Maryland may qualify for transfer tax exemptions or reduced transfer taxes when purchasing a primary residence. Eligibility requirements vary by state and county regulations, and buyers should confirm available programs and qualifications with their lender, settlement company, or local government office.
Yes, although cash buyers generally pay much less than financed buyers because they avoid most lender-related expenses. Cash buyers typically do not pay lender-required appraisal fees, underwriting fees, lender’s title insurance policies, or mortgage-related recordation taxes. However, they still commonly pay transfer taxes, settlement fees, title charges, recording fees, inspections, and any negotiated closing expenses.
Closing costs are paid on the official closing day along with the buyer’s remaining down payment and prepaid expenses. Federal lending regulations require lenders to provide buyers with a Closing Disclosure at least three business days before closing, detailing the final cash-to-close amount required to complete the transaction.
Sellers are not obligated to pay buyer closing costs unless agreed upon in the purchase contract. If a seller declines to offer concessions, buyers can still reduce expenses by comparing lenders, negotiating seller credits, checking eligibility for first-time homebuyer transfer tax exemptions, and shopping around for settlement providers offering lower fees and competitive services.
Reilly Dzurick is a licensed real estate agent with over six years of experience and a member of the iBuyer.com Market Insights Team, covering national trends in home selling and the evolving iBuyer landscape. Her firsthand experience working with buyers and sellers gives her a practical perspective on how these platforms impact real homeowners. She holds a degree in Public Relations, Advertising, and Applied Communication.
