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Maryland vs Pennsylvania:
Mortgage & Housing Costs

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

MetricMarylandPennsylvania
Median Home Price$420K$280K
Property Tax Rate1.09%1.36%
Avg Closing Costs$11K$5K
Closing Cost %2.5%1.7%
Transfer Tax1.5%2%
Homeowners Insurance$1,700/yr$1,400/yr
First-Time Buyer Program
MD Mortgage Program
Up to $25,000 DPA
PHFA Keystone Advantage
Up to $6,000 DPA
Verdict

Pennsylvania wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $280K and lower overall costs, Pennsylvania 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
Pennsylvania
Home Price$280,000
Down Payment (10%)$28,000
Loan Amount$252,000
Monthly P&I$1,593
Monthly Property Tax$317
Monthly Insurance$117
Monthly PMI$105
Total PITI$2,132/mo
Annual property tax: $3,808

The monthly payment difference is $938/month — thats $11,256/year or $338K over the life of a 30-year loan. Buying in Pennsylvania is the more affordable option based on median home prices with identical loan terms.

Income Needed to Buy

Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.

Maryland
$132K/yr
minimum household income
Pennsylvania
$91K/yr
minimum household income

To afford the median home in Maryland, you need a household income of approximately $132K/year. In Pennsylvania, you need $91K/year — less by $40K/year. That $40K income gap means Pennsylvania is accessible to a significantly wider range of households.

Which State Is Right for You?

Pennsylvania 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 Pennsylvania far more accessible, particularly when combined with local down payment assistance programs.

Property tax rates are similar in both states (Maryland: 1.09%, Pennsylvania: 1.36%), 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 Pennsylvania averages $5K (1.7%). 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 Pennsylvania's PHFA Keystone Advantage offers Up to $6,000 DPA. 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: Pennsylvania homes cost $140K less than Maryland on average. That translates to roughly $938 less per month in total housing costs if you choose Pennsylvania. 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

Maryland vs AlaskaMaryland vs ArizonaMaryland vs ConnecticutPennsylvania vs AlabamaPennsylvania vs AlaskaPennsylvania vs Arkansas

Frequently Asked Questions

Is it cheaper to buy a home in Pennsylvania or Maryland?
Pennsylvania is cheaper overall. The median home costs $280K compared to $420K in Maryland, and the total monthly PITI payment is $2,132 versus $3,070. That works out to $938 less per month or $11,256 less per year in Pennsylvania.
How much more are property taxes in Pennsylvania vs Maryland?
Pennsylvania has a property tax rate of 1.36% compared to 1.09% in Maryland. On the median home, that means Pennsylvania homeowners pay approximately $3,808/year in property taxes versus $4,578/year in Maryland — a difference of $770/year.
Which state has better first-time buyer programs, Maryland or Pennsylvania?
Maryland offers the MD Mortgage Program (Up to $25,000 DPA), while Pennsylvania has the PHFA Keystone Advantage (Up to $6,000 DPA). Both programs aim to reduce upfront costs for first-time buyers. Eligibility depends on income limits, purchase price caps, and other criteria set by each state's housing finance agency.

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