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Mortgage rates in New Mexico
Interest rates on a 30-year $300,000 conventional mortgage start at around 5.500%
If you have a credit score between 700 and 719 and can put 5% down, you’ll generally pay about 5.750% for a 30-year conventional loan with a fixed interest rate on a $350,000 home. But how much interest you pay for your New Mexico home will depend on several factors, including your credit score, loan amount and lender.
Rates were last checked on June 8 and are from the Consumer Financial Protection Bureau (CFPB) website.
Your credit score affects the rate you’ll get
People with higher credit scores generally get lower interest rates because lenders assume they’re less likely to stop paying a mortgage. Here are the most common interest rates in New Mexico by mortgage amount, according to the Consumer Financial Protection Bureau (CFPB).
| Credit score | $200,000 mortgage | $300,000 mortgage | $400,000 mortgage | $500,000 mortgage |
|---|---|---|---|---|
| 620-639 | 5.500% | 5.500% | 6.063% | 6.063% |
| 640-659 | 5.688% | 5.625% | 5.875% | 5.875% |
| 660-679 | 5.938% | 5.938% | 5.875% | 5.875% |
| 680-699 | 5.875% | 5.750% | 5.875% | 5.750% |
| 700-719 | 5.875% | 5.813% | 5.875% | 5.875% |
| 720-739 | 5.500% | 5.563% | 5.563% | 5.563% |
| 740-759 | 5.500% | 5.500% | 5.500% | 5.500% |
| 760-779 | 5.500% | 5.500% | 5.500% | 5.500% |
| 780-799 | 5.500% | 5.500% | 5.500% | 5.500% |
| 800+ | 5.500% | 5.500% | 5.500% | 5.500% |
*Based on a 10% down payment for a 30-year fixed-rate conventional mortgage
Interest rates vary by lender
Interest rates are affected by the economy and the federal funds rate, or the rate that banks charge each other for overnight loans. But they’re also affected by individual lenders, which can have differing overhead costs, profit margins and credit score requirements.
Comparing lenders can help you find the best deal. Select See rates to provide the company with basic property and financial details for personalized rates.
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Interest rates also vary by loan type
The type of loan you get can also affect how much you pay for your New Mexico home. 15-year mortgages generally offer lower interest rates than 30-year mortgages, and you’ll see different rates for conventional loans than government loans.
| Loan type | $200,000 mortgage | $300,000 mortgage | $400,000 mortgage | $500,000 mortgage |
|---|---|---|---|---|
| 15-year conventional | 4.750% | 4.750% | 4.688% | 4.688% |
| 30-year conventional | 5.875% | 5.813% | 5.875% | 5.875% |
| 15-year FHA | 3.438% | 3.438% | Not elegible | Not elegible |
| 30-year FHA | 5.375% | 5.375% | Not elegible | Not elegible |
| 15-year VA | 4.188% | 4.188% | 4.188% | 4.188% |
| 30-year VA | 5.563% | 5.375% | 5.375% | 5.375% |
*Based on a 10% down payment, fixed interest rate and 710 credit score
Research ahead of time to get the best rates
A few tips to help you get a better rate on your home loan:
- Compare loan types. Loan programs come with different rates and eligibility criteria. Find out what loan programs and interest rates you qualify for, then carefully weigh your options.
- Take charge of your credit. Pay off as much debt as you can to increase your credit score before you apply for a loan. Doing this can make you a more attractive borrower to prospective lenders.
- Research closing costs. Closing costs in New Mexico are typically between 0.97% and 1.45% of the final purchase price. Lenders might offer lower interest rates but jack up the closing costs for your mortgage. Include closing costs in your lender research to fully understand the cost of your loan.
Home values in New Mexico are forecast to increase
Home values in New Mexico are forecast to continue their upward trend over the next 12 months in all but one city. Whereas the state is expected to see an increase in home values by roughly 7.5% on average, the small Southwestern village of Columbus is expected to see a drop of 0.6%.
The typical home value in New Mexico was $248,670 as of June 2021, an increase of 15.9% since June 2020 and an increase of 51.22% since June 2012. With record-low home inventories in conjunction with low mortgage rates, sellers can expect the near-term market to play in their favor.
5 fast facts about the New Mexico housing market
Here are five facts that are useful to know if you’re planning to buy or sell a home in New Mexico:
- New Mexico is the 7th-cheapest state to live in, according to CNBC.
- The median monthly cost of ownership for homeowners with a mortgage is $1,280, which is 19.75% less than the national average of $1,595.
- New Mexico has one of the most affordable property tax rates at 0.8%.
- Median prices for homes sold in New Mexico in June 2021 were $282,500, up 22.29% from $231,000 in June 2020.
- Albuquerque, New Mexico, recently ranked 7th for the US hottest real estate markets out of the nation’s 95 largest real estate markets.
Bottom line
Mortgage rates in New Mexico vary by loan type, and factors like your credit score and lender affect what rate you get. But factors like your credit score and lender affect what rate you get. Compare mortgage lenders and programs to find one that best fits your homeownership goals.
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