Maryland HELOC Rates and Rules 2026: The Recordation Tax

HELOC rates in Maryland right now

Most HELOCs have a variable rate based on the prime rate plus a margin set by the lender. Your margin depends mostly on your credit and how much of your home's value you borrow.

In 2025, the median HELOC in Maryland opened at 7.63%, and half opened between 6.44% and 9.00%, across 17,709 lines reported under federal HMDA data. The national median was 7.50%. Leaving out lines with a 3 to 12 month introductory rate, the Maryland median was 7.75%. Home equity loans in Maryland, which usually have a fixed rate, closed at a median of 8.75%. HELOC rates in every state.

Prime rate, unchanged since September 17, 2026 (Federal Reserve): 7.00%
Median Maryland HELOC rate at opening, 2025 (HMDA): 7.63%
Average 30-year fixed mortgage rate, week of October 29, 2026 (Freddie Mac): 7.24%

The Federal Reserve raised rates on September 16, 2026, which moved prime to 7.00%. Its October 27 and 28 meeting is more recent than the prime rate data shown here, which runs through October 27, 2026. Its next meeting is December 8 and 9. With 30-year mortgage rates above 7%, a HELOC lets you borrow against your equity without refinancing a lower rate you already have.

How much can you borrow in Maryland?

Maryland law doesn't set a home equity borrowing cap. Each lender sets its own limit on all the loans on your home combined, your current mortgage plus the new line.

Maryland homes are worth more than most: the median is $436,300 against $360,600 for the U.S. But 70% of Maryland owners still have a mortgage, so what you owe matters as much as what the home is worth.

Home value ×80% −what you owe now =a likely maximum line

Example

Home value (the Maryland median for owner-occupied homes): $436,300
80% of value (a common lender limit, not a Maryland law): $349,040
Current mortgage balance: $250,000
Maximum line of credit: $99,040

Example only. Lenders set their own limits and the final amount after an appraisal, and many approve less than the maximum based on credit and income. Budget for your county recordation tax as well.

Run your own numbers in our home equity calculator

Maryland home prices rose about 70% from 2014 to 2025

On the FHFA House Price Index, Maryland home prices rose 69.7% from 2014 to 2025, with the biggest jumps in 2021 (+12.7%) and 2022 (+9.1%). Growth has slowed since: prices rose 2.8% in 2025 and 1.03% in the year to mid-2026, 40th of the 50 states and DC.

Source: FHFA House Price Index, Maryland, purchase-only, through 2026 Q2.

Chart data as a table

Maryland House Price Index, annual average (1991 = 100)
Year	Index (1991 = 100)
2014	217.64
2015	220.78
2016	229.11
2017	238.04
2018	245.19
2019	250.69
2020	266.44
2021	300.19
2022	327.61
2023	342.32
2024	359.52
2025	369.43

The Maryland rules that affect a HELOC, in plain English

Maryland has no special HELOC limits like a borrowing cap or a waiting period. The rule you will notice most is a tax: the county recordation tax on a new line. These come from the Maryland Code, summarized here in plain words.

The recordation tax

Your county sets the rate.: Maryland taxes a new mortgage or HELOC when it is recorded, per $500 of debt. Each county and Baltimore City sets its own rate, so check yours with your county before you close.
One verified example.: Baltimore County charges $2.50 per $500, which is 0.5%. On a $100,000 line paid up front, that is $500.
Pay as you draw, or pay up front.: For a credit line, you choose. You can pay tax only on what you borrow at closing and then on each new draw, or pay once on the full line amount. In Baltimore County, drawing $20,000 at closing would mean $100 of tax at that point.
Paying as you draw takes paperwork.: If you pay as you go, you file a sworn statement and pay the tax within 7 days of each new draw, and you are responsible for that tax and any penalty. Your lender has to explain both options when the line is set up.
Refinance break is limited.: If you refinance a loan you originally took out, the amount up to your old unpaid balance is exempt. New money above that, like a cash-out or a new line, is taxed.
No state transfer tax on a HELOC.: Maryland's 0.5% state transfer tax applies to deeds, not to mortgages or deeds of trust.

Before you sign

Use a licensed lender.: Mortgage lenders need a Maryland license from the Commissioner of Financial Regulation unless exempt. Banks, savings institutions and credit unions chartered in Maryland or by the U.S., and other-state banks with a Maryland branch, are exempt.

If you can't pay

90 days and a 45-day notice.: A foreclosure on a home with up to four units cannot be filed until 90 days after a default, and not until 45 days after the lender sends you a notice of intent to foreclose, whichever is later. The case is filed in circuit court.
Foreclosure mediation.: If you live in the home, the court papers usually come with a form to request mediation. A lender may also offer mediation before filing; you would apply within 25 days of the notice and meet with a housing counselor first.

Property tax basics

Homestead tax credit.: For your principal residence, the taxable assessment can rise no more than 10% a year for state property tax. Your county sets its own limit between 0% and 10%. You have to apply to the State Department of Assessments and Taxation, and you can apply online.

Maryland homeowners by the numbers

Median value of an owner-occupied Maryland home: $436,300; U.S.: $360,600
Maryland homeowners with no mortgage at all: 30.0%; U.S.: 40.3%
Owner-occupied homes in Maryland: 1.6 million
Median yearly property tax paid in Maryland: $4,144; U.S.: $3,211

Source: U.S. Census Bureau, American Community Survey 2024 1-year estimates.

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Frequently asked questions

Do I pay recordation tax on a HELOC in Maryland?

Yes. Your county charges recordation tax per $500 of debt when the line is recorded. Each county sets its own rate; Baltimore County, for example, charges $2.50 per $500.

Can I pay the recordation tax only on what I draw?

Yes. You can pay tax on the amount you borrow at closing and then on each new draw within 7 days, or pay once on the full line. Your lender has to explain the choice.

Is a HELOC subject to Maryland's transfer tax?

No. Maryland's 0.5% state transfer tax does not apply to mortgages or deeds of trust.

Is a refinance exempt from Maryland recordation tax?

Partly. If you are the original borrower, the amount up to your old unpaid balance is exempt. Any new money above it is taxed.

Does my HELOC lender need a Maryland license?

Yes, unless it is exempt, such as a bank or credit union chartered in Maryland or by the U.S. Maryland licenses are issued by the Commissioner of Financial Regulation.

What happens if I fall behind on a Maryland HELOC?

A foreclosure cannot be filed until 90 days after default and 45 days after a notice of intent to foreclose, whichever is later. If you live in the home, you can request mediation.

Does checking my options with LenderMatch affect my credit?

No. LenderMatch never pulls your credit. A lender you choose to work with may check it, with your permission.

HELOCs in Maryland: how much you can borrow and the recordation tax to plan for

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