New Mexico Mortgage and Refinance Rates

As of Sunday, October 24, 2021, current rates in New Mexico are 3.18% for a 30-year fixed, and 2.44% for a 15-year fixed.

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New Mexico mortgage overview

By Zach Wichter

New Mexico is home to more than 2 million residents, and as of 2018, 67.6 percent lived in owner-occupied housing, with a median home value of $166,800.

The New Mexico Mortgage Finance Authority (MFA) helps state residents connect with affordable and sustainable housing and provides financing from housing bonds, tax credits and grants from other government agencies.

In 2019, the New Mexico MFA provided more than $527 million in low-interest loans and grants across the state, as well as access to financial counseling and educational programs.

First-time homebuyer programs in New Mexico

First-time homebuyers in New Mexico have access to a variety of national programs and local educational opportunities to help them through the homebuying process.

FIRSTHome

FIRSTHome is the New Mexico MFA’s home loan offering for low- to moderate-income first-time homebuyers (defined as a buyer who has not owned a home before, or has not owned a home in three or more years).

To be eligible, buyers must be purchasing a single-family home, and:

  • Contribute $500 of their own money
  • Have a credit score of 620 or higher (though alternative qualification may be available in certain cases)
  • Meet income and home purchase price limits

The FIRSTHome program can be used in conjunction with the FIRSTDown down payment assistance program.

FIRSTDown

For borrowers in the FIRSTHome program, the New Mexico MFA also offers FIRSTDown down payment and closing cost assistance up to $8,000. FirstDOWN must be combined with the FIRSTHome program.

The assistance through FIRSTDown comes in the form of a fixed-rate second mortgage, and has the same credit score minimum, home purchase limit and homebuyer counseling requirements as the FIRSTHome program. The household income limits, which vary by county, are also the same. For instance, a one- to two-person household in Union County must not exceed $69,840 in annual income to qualify.

New Mexico mortgage refinancing

There are many reasons to refinance your mortgage, including a faster payoff, eliminating PMI (private mortgage insurance) or getting a lower interest rate. If you’re looking to refinance a home in New Mexico, private lenders, banks and mortgage brokers are all options; the New Mexico MFA does not offer any programs specifically for refinancing.

It’s important to note that you don’t have to refinance with the same lender who holds your current mortgage, regardless of the lending institution. When you’re ready to refinance, it’s smart to identify your goals, do your research and shop around to make sure you’re getting the best possible rate and terms. Note that some first-time homebuyer assistance programs are void upon refinancing.

For those facing imminent foreclosure because of mortgage nonpayment, the state Attorney General’s office operates a program, Keep Your Home New Mexico, that connects homeowners with HUD-certified counselors to help them determine if refinancing or a loan modification will help.

New Mexico mortgage resources