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Buying a home in New Mexico
According to Zillow, the typical home value in New Mexico is lower than the typical value of $356,026 across the US. The typical home value in New Mexico is $297,808, and home values have increased 16.5% over the past year.
Historic mortgage rates for New Mexico
By looking at the average mortgage rates in New Mexico since 2010, you can see trends for 30-year fixed mortgages, 15-year fixed mortgages, and 7/1 adjustable mortgages:
Seeing how today’s rates compare to historic New Mexico mortgage rates may help you decide whether you’d be getting a good deal by getting a mortgage or refinancing now.
Use our free mortgage calculator to learn about how today’s rates will affect your monthly payments.
Your estimated monthly payment
- Paying a 25% higher down payment would save you $8,916.08 on interest charges
- Lowering the interest rate by 1% would save you $51,562.03
- Paying an additional $500 each month would reduce the loan length by 146 months
By clicking on “More details,” you’ll see how rates can impact your long-term finances, too.
New Mexico first-time homebuyer programs
You might be eligible for one of the following programs through the New Mexico Mortgage Finance Authority:
- FIRSTDown: Get a mortgage through the state’s FIRSTHome program and receive a loan of up to $8,000 for closing costs or a down payment. You can talk with your lender about repayment terms.
- NEXTHome: Receive a loan of up to 3% of your mortgage amount for a down payment or closing costs. You don’t have to make monthly payments, and if you meet certain requirements, the government may forgive this loan.
- Federal Housing Administration mortgage: You can get a down payment of 3.5% with a credit score of at least 580, or get a mortgage with a credit score between 500 and 580 with 10% down using this loan, which is also called an FHA loan.
- United States Department of Agriculture mortgage: These loans, also called USDA loans, can be useful if you are a low-to-moderate income borrower looking to buy a home in a rural or suburban area.
- Veterans Affairs mortgage: These mortgages, also called VA loans, are for active-service military members or veterans, or spouses of members who have died and can provide lower interest rates than conventional mortgages.
Refinancing your mortgage in New Mexico
Mortgage refinance rates are at all-time lows right now, so it could be a good idea to switch your current mortgage for one with a better interest rate — especially if the new rate would be significantly lower.
You may decide to refinance with the same lender that gave you your initial mortgage, but it’s not always the best idea. A different lender may offer you a better deal the second time around. Shop around for a company that will offer the best interest rate and charge relatively low fees.
How to get a low interest rate on your mortgage
You can take several steps toward landing the lowest mortgage rate possible:
- Save more for a down payment. With a conventional mortgage, you may be able to put down as little as 3%. But lenders reward a higher down payment with a lower mortgage rate. Rates should stay low well into 2021, if not longer, so you may have time to save a bigger down payment.
- Increase your credit score. Many lenders require a minimum credit score of 620 to receive a mortgage, but if your score is higher, a lender may offer a better rate. The most important factor for boosting your score is to pay all your bills on time.
- Lower your debt-to-income ratio. Your DTI is the amount you pay toward debts each month, divided by your gross monthly income. Most lenders want to see a DTI of 36% or less for a conventional mortgage, but a lower DTI can leader to a lower mortgage rate. To improve your DTI, pay down debts or look for opportunities to increase your income.
- Choose a federally backed mortgage. If you’re qualified, you may think about a USDA loan (for low-to-moderate-income borrowers buying in a rural area), a VA loan (for military members and veterans), or an FHA loan (not designated for any particular group). These loans typically come with lower interest rates than conventional mortgages. As a bonus, you won’t need a down payment for USDA or VA loans.
Improving your financial situation and choosing the right type of mortgage for your needs can help you get the best interest rate possible.
Mortgage and refinance rates by state
Laura Grace Tarpley, CEPF
Personal Finance Reviews Editor
Laura Grace Tarpley (she/her) is a personal finance reviews editor at Insider. She edits articles about mortgage rates, refinance rates, lenders, bank accounts, wealth building, and borrowing and savings tips for Personal Finance Insider. She is also a Certified Educator in Personal Finance (CEPF).
She has written about personal finance for six years. Before joining the Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU. You can reach Laura Grace at firstname.lastname@example.org.
See below for some of her work.
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State mortgage rates