Maryland [HELOC Rates](/blog/best-heloc-lenders-2026) & Guide: Home Equity Lines of Credit in the Old Line State (2026)

Maryland homeowners have a lot going for them: proximity to Washington, D.C., strong job markets, and home values that have climbed steadily. With median home prices well above the national average, many Maryland homeowners have substantial equity to work with. Here's how to make the most of it through a HELOC.

Maryland Housing Market Overview

Maryland's housing market is heavily influenced by the D.C. metro economy, federal government employment, and the defense/cybersecurity sector. This creates a stable foundation that supports property values even during broader economic uncertainty.

• Median home value: ~$400,000
• Year-over-year appreciation: ~4.5%
• Average equity per homeowner: ~$165,000
• Homeownership rate: ~67%

Montgomery County and Howard County are the most expensive markets, with median values exceeding $550,000 and $475,000 respectively. Baltimore City is significantly more affordable (~$200,000 median) but with wider variability by neighborhood. The Eastern Shore and western Maryland are also more affordable.

Maryland's high home values translate to large equity positions for long-term homeowners, making the state a prime market for HELOCs.

Current HELOC Rates in Maryland

Maryland HELOC rates as of early 2026:

Maryland rates are competitive with national averages, helped by intense competition among the many banks, credit unions, and mortgage companies operating in the D.C. metro area. Borrowers with excellent credit and strong equity can often negotiate below-advertised rates, particularly at local institutions.

Several Maryland credit unions offer promotional rates as low as 6.49% for the first 12 months.

HELOC Qualification Requirements in Maryland

Maryland lenders follow standard guidelines with some local nuances:

• Credit score: 660+ for most lenders; select credit unions go to 620
• CLTV ratio: 80%–90% maximum; some lenders stretch to 95% for borrowers with excellent credit in stable zip codes (Montgomery County, Howard County)
• DTI ratio: 43% or below. Maryland's higher home values and property taxes make DTI a common pinch point — borrowers need sufficient income to support the payment
• [Property appraisal](/blog/appraisal-process-explained): Required by most lenders for larger lines; AVMs accepted for smaller lines in well-documented markets
• HOA/condo considerations: Maryland has a large number of condominiums and HOA communities. Lenders will review HOA financials and may impose additional requirements for condo HELOCs
• Ground rent: Some older Baltimore-area properties have ground rent (a historical leasehold arrangement). This can complicate HELOC processing — inform your lender upfront

Best Local Maryland Lenders for HELOCs

SECU (State Employees Credit Union of Maryland)

One of Maryland's largest credit unions, SECU offers HELOCs with competitive rates, no annual fee, and no closing costs on many products. Membership is open to anyone who lives, works, or worships in Maryland — not just state employees despite the name. Consistently among the [best HELOC rates](/blog/heloc-rate-negotiation-guide) in the state.

Tower Federal Credit Union (Laurel)

Serving the Baltimore-Washington corridor, Tower FCU offers HELOCs with no closing costs, no annual fee, and competitive variable rates. They also offer a fixed-rate option for rate-lock flexibility. Open to a broad membership base.

Sandy Spring Bank (Olney)

A Maryland-based community bank with deep roots in Montgomery and Howard counties. Their HELOC products feature local underwriting, competitive rates, and personalized service. Particularly strong for borrowers in the affluent suburban markets where they know the neighborhoods.

First United Bank & Trust (Oakland/Western MD)

For western Maryland homeowners, First United offers HELOC products with local knowledge and flexible underwriting. They understand the unique dynamics of the Garrett County and Allegany County markets.

Congressional Federal Credit Union

Serving the Capitol Hill area and greater Maryland, Congressional FCU offers strong HELOC terms with low fees. Good for D.C.-area workers living in Maryland suburbs.

Best National Lenders Serving Maryland

PNC Bank

PNC has a large Maryland branch network and competitive HELOC products. They offer rate discounts for existing PNC customers and a smooth digital application process. Their familiarity with the Maryland market is an advantage.

Bank of America

Strong presence throughout Maryland. Preferred Rewards members get rate discounts of 0.25%–0.75%. No closing costs, no annual fee. Their digital platform handles the entire process efficiently.

Wells Fargo

Extensive Maryland branch network with competitive HELOC rates and relationship discounts. Their HELOC product has no annual fee and offers flexible draw options.

Figure

Fully online HELOC closing in 5–10 business days. Origination fee of 1%–4.99% applies. Good for borrowers who want speed and convenience over in-person service.

Bethpage Federal Credit Union

Though headquartered in New York, Bethpage is open to anyone nationwide and consistently offers some of the [lowest HELOC rates](/blog/best-heloc-rates-2026) available. Worth a rate comparison even without local branches.

Maryland State Regulations for HELOCs

Maryland has a relatively protective regulatory framework for consumer lending:

Consumer Protection

• Maryland Consumer Protection Act: Provides robust protections against deceptive lending practices, with the state Attorney General's office actively enforcing these rules
• Maryland Mortgage Lender Law: Requires licensing for mortgage lenders and imposes conduct standards
• Right of rescission: Standard 3-business-day federal cancellation right
• No prepayment penalties: Consistent with federal law

Foreclosure Process

• Non-judicial foreclosure (with protections): Maryland technically allows non-judicial foreclosure through a power of sale, but the process includes significant court oversight and notice requirements
• Timeline: Foreclosure in Maryland typically takes 3–6 months, shorter than judicial foreclosure states
• Mediation: Maryland requires lenders to offer loss mitigation/mediation before proceeding with foreclosure on owner-occupied properties
• Notice requirements: Borrowers must receive multiple notices and opportunities to cure before foreclosure

Other Regulations

• [Homestead exemption](/blog/homestead-exemption-guide): Maryland's homestead exemption is relatively modest — no specific dollar amount but ties to the Homestead Tax Credit (different from creditor protection). For creditor protection, Maryland's exemption is limited
• Recording taxes and fees: Maryland imposes a recordation tax on the HELOC security instrument. The state rate is $7.00 per $1,000 of the HELOC line amount, plus county surcharges. On a $100,000 HELOC, expect $700+ in recordation taxes — this is a significant cost unique to Maryland
• Ground rent: Unique to Baltimore and some surrounding areas, ground rent properties require additional documentation for HELOC approval

The Recordation Tax: Maryland's Hidden HELOC Cost

This is the biggest Maryland-specific consideration. The recordation tax can add hundreds or thousands of dollars to your [HELOC closing costs](/blog/heloc-closing-costs-breakdown):

• $50,000 HELOC: ~$350+ in recordation tax
• $100,000 HELOC: ~$700+ in recordation tax
• $200,000 HELOC: ~$1,400+ in recordation tax

Some lenders absorb this cost; others pass it to the borrower. Always ask about recordation tax treatment when comparing Maryland HELOC offers. This single factor can make one lender significantly cheaper than another.

Tax Implications of a Maryland HELOC

Federal Tax Deduction

HELOC interest is deductible when funds are used for home acquisition, construction, or substantial improvement. Same rule applies everywhere.

Maryland State Income Tax

Maryland has a graduated income tax with rates from 2.0% to 5.75%, plus a county income tax that ranges from 2.25% to 3.20% depending on where you live. Combined state and local income tax rates range from about 4.25% to 8.95%.

This makes Maryland one of the highest-income-tax states in the country when you combine state and county levies. The good news: qualifying HELOC interest is deductible on your Maryland return.

Example: A Montgomery County homeowner in the 24% federal bracket and 8.95% combined state/county bracket with a qualifying 8.00% HELOC effectively pays about 5.36% after tax deductions. The high state/local taxes make the deduction extremely valuable in Maryland.

Property Tax Context

Maryland property taxes are moderate to high:

• Effective property tax rate: ~1.07%
• Median annual property tax bill: ~$4,300
• Homestead Tax Credit: Limits assessment increases to 10% per year (or less in some counties), protecting homeowners from rapid tax increases during appreciation spikes
• County variation: Baltimore City (~2.25% effective rate) is much higher than Howard County (~1.01%) or Montgomery County (~0.96%)

Maryland's Homestead Tax Credit is a notable benefit — it prevents your property tax bill from spiking when home values surge, providing cash flow stability that makes carrying a HELOC more predictable.

Frequently Asked Questions

What is the recordation tax on a Maryland HELOC and can I avoid it?

The recordation tax is $7.00 per $1,000 of the credit line (minimum), plus county surcharges. You can't avoid it, but some lenders pay it as part of their "no closing cost" HELOC promotions. Ask specifically whether recordation tax is covered. You can also minimize the tax by opening a smaller line and requesting an increase later (though the increase will trigger additional tax).

Can I get a HELOC on a condo in Maryland?

Yes, but lenders will review the HOA's financial health, insurance coverage, and reserve funds. Condos in well-managed associations with strong reserves are approved readily. If the HOA has significant deferred maintenance, pending litigation, or low reserves, some lenders may decline. FHA-approved condo projects generally have an easier path to HELOC approval.

What about ground rent properties in Baltimore?

Ground rent is a historical leasehold arrangement where someone else owns the land under your home. You can get a HELOC on a ground rent property, but the process is more complex. The lender needs to verify the ground rent terms and ensure they have proper lien position. Not all lenders work with ground rent properties — ask upfront. You can also buy out the ground rent (redeem the lease) to simplify future borrowing.

How does the D.C. metro market affect Maryland HELOC options?

Favorably. The intense competition among lenders in the D.C. corridor — dozens of banks, credit unions, and online lenders — drives competitive HELOC rates and terms for Maryland borrowers. It also means more lenders are familiar with Maryland's unique regulations, making the process smoother.

Should I use a HELOC or [cash-out refinance](/blog/cash-out-refinance-guide) in Maryland?

With the recordation tax adding cost to HELOCs, it's worth comparing against a cash-out refinance — which also triggers recordation tax but at the full mortgage amount. If you already have a low-rate first mortgage (sub-5%), a HELOC is almost certainly better than refinancing at today's higher rates. If your first mortgage rate is above 7%, a cash-out refinance might make sense depending on the numbers.

The Bottom Line

Maryland is a strong HELOC market with high equity positions, competitive lenders, and meaningful tax deduction benefits. The main watch-out is the recordation tax — it's a real cost that can significantly impact your closing expenses.

Start with SECU or Tower FCU for the best local rates, and ask specifically whether they cover the recordation tax. Compare with PNC or Bank of America for national options. The D.C. metro lending market is competitive enough that you should get multiple quotes.

For Maryland homeowners with qualifying home improvement plans, the combined federal and state/county tax deduction makes HELOC interest remarkably cheap on an after-tax basis — potentially below 5.50% for borrowers in higher tax brackets. That's cheaper than almost any other form of borrowing.

Just watch your total housing cost picture. Maryland's combination of property taxes, state/county income taxes, and (in some cases) HOA fees means housing costs add up fast. Make sure your HELOC payment fits comfortably within that broader budget.

Related Articles

• HELOC Closing Costs Guide: What You'll Really Pay in 2026
• HELOC Closing Costs Explained: What You'll Actually Pay
• [Home [Equity Explained](/blog/home-equity-explained): What It Is and How to Build It](/blog/home-equity-explained)