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Maryland vs New Mexico:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Maryland and New Mexico. Updated for 2026.

MetricMarylandNew Mexico
Median Home Price$420K$280K
Property Tax Rate1.09%0.8%
Avg Closing Costs$11K$4K
Closing Cost %2.5%1.4%
Transfer Tax1.5%None
Homeowners Insurance$1,700/yr$1,900/yr
First-Time Buyer Program
MD Mortgage Program
Up to $25,000 DPA
MFA First Home
FIRSTDown DPA assistance
Verdict

New Mexico wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $280K and lower overall costs, New Mexico offers meaningful savings compared to Maryland. Both states offer first-time buyer programs — explore the state pages for full details.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

Maryland
Home Price$420,000
Down Payment (10%)$42,000
Loan Amount$378,000
Monthly P&I$2,389
Monthly Property Tax$382
Monthly Insurance$142
Monthly PMI$158
Total PITI$3,070/mo
Annual property tax: $4,578
New Mexico
Home Price$280,000
Down Payment (10%)$28,000
Loan Amount$252,000
Monthly P&I$1,593
Monthly Property Tax$187
Monthly Insurance$158
Monthly PMI$105
Total PITI$2,043/mo
Annual property tax: $2,240

Buying in New Mexico saves you approximately $1,027/month ($12,324/year) compared to Maryland, based on median home prices with identical loan terms.

Which State Is Right for You?

New Mexico offers meaningfully lower home prices than Maryland, with median prices running 33% less ($140K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Maryland may find New Mexico far more accessible, particularly when combined with local down payment assistance programs.

Property tax rates are similar in both states (Maryland: 1.09%, New Mexico: 0.8%), so taxes shouldn't be the deciding factor in your relocation decision. Instead, focus on differences in home prices, insurance costs, and state-specific programs. Both states collect roughly comparable property tax revenue relative to home values.

Closing costs are a one-time but significant expense. Maryland averages $11K in closing costs (2.5% of purchase price) while New Mexico averages $4K (1.4%). Much of Maryland's higher costs come from its 1.5% transfer tax, which adds $6K to the median home purchase. Budget for these upfront costs — they affect how much cash you need on hand at closing.

Both states offer down payment assistance for first-time buyers. Maryland's MD Mortgage Program provides Up to $25,000 DPA, while New Mexico's MFA First Home offers FIRSTDown DPA assistance. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.

Key Takeaway

The bottom line: New Mexico homes cost $140K less than Maryland on average. That translates to roughly $1,027 less per month in total housing costs if you choose New Mexico. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.

Compare Other States

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