New Mexico Mortgage and Refinance Rates

Current mortgage rates in New Mexico

As of Saturday, December 9, 2023, current mortgage interest rates in New Mexico are 7.60% for a 30-year fixed mortgage and 6.90% for a 15-year fixed mortgage.

Refinance rates in New Mexico

While refinance rates are no longer at historic lows, you might be able to do a cash-out refinance to pay for renovations. Use Bankrate’s mortgage refinance calculator to run the numbers.

New Mexico mortgage rate trends

The average rate on a 30-year fixed mortgage in New Mexico declined slightly as of mid-November 2023, but rates overall are still much higher than they have been in recent years. While rates are hard to predict, some now expect them to gradually decline into 2024.

National mortgage rates by loan type

Mortgage statistics for New Mexico

New Mexico is known for its varied climates and Southwestern culture. The state’s population growth has stagnated some, according to the New Mexico Legislative Finance Committee. Let’s look at some stats around mortgages and the housing market in “The Land of Enchantment”:

• Median home value (as of Oct. 2023): $293,040 (Zillow)
• Homeownership rate (as of Dec. 2022): 71.1% (Census Bureau)
• Loan funding rate in 2022: 49% (Home Mortgage Disclosure Act)
• Average mortgage loan size in 2022): $275,800 (Home Mortgage Disclosure Act)

Mortgage options in New Mexico

There’s a variety of mortgage options available to homebuyers in New Mexico. Here are some of the most common:

• New Mexico conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
• New Mexico FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580. 
• New Mexico VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent.

First-time homebuyer programs in New Mexico

If you’re an eligible first-time homebuyer in New Mexico, these more affordable homebuying loan programs might help:

• FIRSTHome: FIRSTHome is the New Mexico Mortgage Finance Authority’s (MFA) home loan offering for low- to moderate-income first-time homebuyers (defined as a buyer who has not owned a home before or in at least the past three years). 
• FIRSTDown: For borrowers in the FIRSTHome program, the New Mexico MFA also offers FIRSTDown down payment and closing cost assistance up to 4 percent of the home’s sale price. The assistance through FIRSTDown comes in the form of a fixed-rate second mortgage. To be eligible, you must have a FIRSTHome mortgage and be under specific area income limits.
• HomeNow: The HomeNow program offers up to $7,000 in down payment and closing cost assistance for low-income first-time homebuyers. The assistance comes in the form of a second mortgage at zero percent interest, which can be forgiven after 10 years under certain conditions.
• HomeForward: HomeForward is a mortgage and down payment assistance program for both first-time homebuyers and repeat homebuyers with low- to medium-income.

Additional New Mexico mortgage resources

• New Mexico first-time homebuyer resources: Get more help becoming a homeowner.
• New Mexico loan limits by county: Learn the conforming loan limit for your city or town.

How to find the best mortgage rate in New Mexico for you

• Step 1: Strengthen your credit score - Before you start searching for a lender or applying for a loan, check your credit report for errors and improve your credit score if needed.
• Step 2: Determine your budget - You need to know how much house you can afford before looking for a loan.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation. It’s also a necessary step before putting an offer on a house.

Learn more about how to get a mortgage.