What can you really afford in Montgomery County in 2027?

How this estimate works

• Price range: the low end keeps your full housing payment at 28% of gross income and total debts at 43%, or your own comfortable payment if that's lower. The high end uses 30% and 45%, the top of typical lender guidelines.
• Rate: 7.24% 30-year fixed by default (Freddie Mac PMMS 30-year fixed average, as of October 29, 2026). Your rate depends on credit, loan type and points.
• Property tax: the FY 2027 (July 2026 – June 2027) Montgomery County rate of 1.1521 per $100 of value, charged on the price. Homes in Rockville, Gaithersburg, Takoma Park and other towns pay a different rate.
• Insurance $1,800 a year. Mortgage insurance (PMI) 0.55% of the loan a year below 20% down. HOA $200 a month unless you change it.
• Cash to close: your savings cover closing costs first, then the down payment, from 3% up to 20% (anything beyond stays in reserve). Closing costs include $3,500 in lender fees, $3,000 for title and settlement, the first year of insurance and 3 months of tax escrow.
• Transfer and recordation taxes: for a first-time Maryland buyer who will live in the home, the seller pays them by default unless the contract says otherwise. Otherwise you pay half.
• Seller credit (if you tick the box): the seller credits 3% of the price at closing. It pays your closing costs first, so more of your savings goes to the down payment. Whatever is left buys down your rate with discount points, estimated at 0.25% off per point (1% of the loan), up to 1% off; your lender quotes the real trade. The credit can't count toward the down payment or be taken as cash. 3% is the conventional-loan limit below 10% down (6% with 10% or more down; FHA allows up to 6%). It's negotiated in your offer, so the seller has to agree.

This is an estimate for planning, not a loan approval or a rate quote. A lender's Loan Estimate is the number to rely on.