Reliant Home Funding Editorial Team

NMLS #292473Licensed in 27 statesUpdated August 17, 2026

Reviewed for accuracy by senior mortgage advisors • Rates verified against Freddie Mac PMMS®

Why Maryland Homeowners Choose 1st Mortgage Refinance Over HELOC

As of June 18, 2026, according to Freddie Mac's Primary Mortgage Market Survey®, the 30-year fixed-rate mortgage averaged 6.47%, and the 15-year fixed-rate mortgage averaged 5.81%. According to Freddie Mac PMMS® These rates present an opportune moment for Maryland homeowners to consider refinancing their first mortgage.

Many homeowners contemplate accessing their home's equity through a Home Equity Line of Credit (HELOC). However, refinancing your first mortgage can offer distinct advantages over a HELOC, especially for those with strong credit profiles and substantial equity.

What Are Today's Mortgage Rates in Maryland?

Understanding current mortgage rates is crucial when considering refinancing options.

Loan Type	Average Rate	Rate Change
30-Year Fixed-Rate Mortgage	6.47%	-0.05%
15-Year Fixed-Rate Mortgage	5.81%	-0.03%

These rates, as of June 18, 2026, according to Freddie Mac's Primary Mortgage Market Survey®, reflect a slight decrease from the previous week. According to Freddie Mac PMMS® This trend may present an opportunity for homeowners to secure more favorable terms through refinancing.

Advantages of Refinancing Your First Mortgage

Refinancing your first mortgage can provide several benefits:

Lower Interest Rates: Locking in a fixed rate at current levels can lead to long-term savings.
Consolidation of Debt: Combining existing mortgages or high-interest debts into a single, lower-interest loan simplifies payments.
Predictable Payments: Opting for a fixed-rate mortgage ensures consistent monthly payments, aiding in budgeting.

Pro Tip: Refinancing can be particularly advantageous if your current mortgage rate is higher than the prevailing market rates.

Considerations for Refinancing in Maryland

When contemplating refinancing in Maryland, consider the following:

Current Mortgage Rate vs. New Rate: Evaluate the difference between your existing rate and potential new rates.
Loan Term: Decide on a loan term that aligns with your financial goals, such as 15 or 30 years.
Closing Costs: Account for fees associated with refinancing, typically ranging from 2% to 5% of the loan amount.
Home Equity: Ensure you have sufficient equity to avoid private mortgage insurance (PMI) requirements.
Credit Score: A higher credit score can secure better refinancing terms.

Pro Tip: In Maryland, refinancing can be particularly beneficial if your current mortgage rate is significantly higher than the prevailing market rates.

Common Mistakes Homebuyers Make

Avoiding common pitfalls can enhance your refinancing experience:

1. Ignoring Total Costs

Impact: Focusing solely on monthly payments without considering total interest paid over the loan's life.
How to Avoid: Use mortgage calculators to assess long-term costs.

2. Not Shopping Around

Impact: Accepting the first offer without comparing rates and terms from multiple lenders.
How to Avoid: Obtain quotes from at least three lenders to find the best deal.

3. Overlooking Loan Terms

Impact: Choosing a loan term that doesn't align with your financial goals.
How to Avoid: Clearly define your objectives before refinancing.

4. Underestimating Closing Costs

Impact: Not budgeting for fees, which can be substantial.
How to Avoid: Request a detailed breakdown of all costs from your lender.

Pro Tip: In Maryland, refinancing can be particularly advantageous if your current mortgage rate is significantly higher than the prevailing market rates.

Frequently Asked Questions

1. How do current mortgage rates affect refinancing decisions?

Current rates influence the potential savings from refinancing. Lower rates can lead to significant long-term savings.

2. What are the benefits of refinancing over a HELOC?

Refinancing offers a fixed interest rate and predictable payments, whereas HELOCs have variable rates and can lead to payment fluctuations.

3. How do I determine if refinancing is right for me?

Assess your current mortgage rate, loan balance, and financial goals to determine potential benefits.

4. What are the typical closing costs for refinancing in Maryland?

Closing costs in Maryland typically range from 2% to 5% of the loan amount.

5. How long does the refinancing process take?

The refinancing process can take 30 to 60 days, depending on the lender and complexity of the loan. Note: The refinancing process time varies and is subject to lender's discretion.

For competitive agency conventional rates in Maryland, consider Reliant Home Funding (NMLS #292473). Compare today's rates →

Conclusion

Refinancing your first mortgage in Maryland can offer significant advantages, including lower interest rates, debt consolidation, and predictable payments. By carefully considering your financial goals and the current market conditions, you can make an informed decision that aligns with your needs.

To explore your refinancing options further, compare rates from multiple lenders, consult with a mortgage professional, and consider getting pre-approved to streamline the process.

Maryland Mortgage Lender License # 06-25234. Reliant Home Funding, Inc. NMLS #292473. Equal Housing Lender. Loans subject to borrower qualifications, property evaluation, and credit approval. All rates and program guidelines subject to change without notice. Loans are subject to credit approval, and rates and terms may change.

Compliance Disclaimer: Maryland Mortgage Lender License # 06-25234. Reliant Home Funding, Inc. NMLS #292473. Equal Housing Lender. Licensed in Maryland. Loans subject to borrower qualifications, property evaluation, and credit approval. All rates and program guidelines subject to change without notice.