Average Closing Costs in Annapolis, Maryland (2026 Guide)
Homebuyers in Annapolis typically pay $9,700 to $24,250 in closing costs on a $485,000 home — approximately 2.5% of the purchase price.
2026 Closing Cost Fee Breakdown
Based on $485,000 median home price in Annapolis
| Fee | Typical Range | Negotiable? |
|---|---|---|
| Origination Fee | $500 – $2,500 | Yes |
| Underwriting Fee | $400 – $1,200 | Yes |
| Processing Fee | $300 – $900 | Yes |
| Appraisal Fee | $400 – $700 | No |
| Credit Report | $25 – $75 | No |
| Flood Certification | $10 – $50 | No |
| Lender's Title Insurance | $500 – $2,000 | No |
| Settlement Fee | $300 – $800 | Sometimes |
| Recording Fees | $50 – $250 | No |
| Prepaid Interest | Varies by rate | No |
| Property Tax Escrow | 2–3 months | No |
| Homeowners Insurance | 1–2 months | No |
| Estimated Total | $9,700 – $24,250 |
Ranges are typical for a conventional purchase loan · Prepaid and escrow amounts vary by closing date and lender · Source: FairRate market data 2026
Maryland Real Estate Laws That Affect Your Closing Costs
Maryland has both a State Transfer Tax and county-level recordation tax. Maryland has a first-time homebuyer exemption that reduces the state transfer tax from 0.5% to 0.25% for qualifying buyers.
Transfer Tax in Maryland
Maryland State Transfer Tax is 0.5% of sale price (0.25% for first-time buyers). County recordation taxes vary — Montgomery County charges $8.90 per $1,000, Baltimore City charges $10 per $1,000.
First-Time Buyer Programs in Maryland
DHCD offers the Maryland Mortgage Program with competitive rates and down payment assistance.
Income and purchase price limits apply. Contact your lender or your state housing finance agency for current program terms in Annapolis.
Which Fees Are Negotiable?
The fees in Section A of your Loan Estimate are set by the lender and are negotiable: origination, underwriting, and processing fees. Section B fees — appraisal, title, recording — are set by third parties and cannot be negotiated with the lender.
What to Do When You Get Your Loan Estimate
Your lender must provide a Loan Estimate within 3 business days of application. Check Section A fees against the ranges above, ask your lender to justify any fee above the typical range, and compare total closing costs across at least two lenders.
Get Your Fees Analyzed