New Mexico Mortgage and Refinance Rates

Current mortgage rates in New Mexico

As of Saturday, February 22, 2025, current mortgage interest rates in New Mexico are 7.06% for a 30-year fixed mortgage and 6.25% for a 15-year fixed mortgage.

Refinance rates in New Mexico

Refinance rates are still much higher than the lows of a few years ago during the pandemic. For that reason, refinancing now doesn't make much sense for many homeowners. However, if you’ve owned your home for a long time, you may be sitting on a decent chunk of equity that could make a cash-out refinance a viable option to pursue other financial goals. Use Bankrate’s mortgage refinance calculator to run the numbers.

New Mexico mortgage rate trends

 After dipping below 7 percent in the fall of 2024, rates rebounded and began 2025 above 7 percent. Buyers on a tight budget aren’t seeing any meaningful relief when it comes to borrowing costs yet, as of this writing. For most of 2025, many housing experts predict that rates will settle within the 6s, and it's not likely they'll drop much, if at all, below that.

And while rates in New Mexico may not look appealing, buying a home here doesn't cost as much as in other U.S. states. The median home sales price in the state was just under $329,000, according to October 2024 figures from ATTOM — well below the national median home sales price.

National mortgage rates by loan type

Mortgage statistics for New Mexico

New Mexico is known for its varied climates and Southwestern culture. As you start your house-hunting journey, consider these statistics to help prepare for the process:

• Median home price (as of Nov. 2024): $328,959 (ATTOM)
• Median days on market (as of Dec. 2024): 65 (Redfin)
• Sale-to-list price (as of Dec. 2024): 94.6% (Redfin)
• Median down payment (as of Oct. 2024): $64,263 (ATTOM)
• Homeownership rate (as of Q3 2024): 69.1% (Census Bureau)

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 3.3 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). A minimum 620 credit score is required, but there is an alternative evaluation process for borrowers with no established credit, too.
• 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.

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. Also, make sure to read reviews of mortgage lenders in New Mexico to see what other borrowers have to say about the service and their overall experience.
• 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.

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.
• New Mexico mortgage lenders: Compare rates for getting a mortgage in New Mexico.
• Buying a home in New Mexico: Read our guide to learn everything you need to know about buying a home in New Mexico.
• New Mexico’s best homeowners insurance companies: Research the best insurance providers for you to get the right coverage at the right rate.

Meet our Bankrate experts

Written by: Andrew Dehan, Writer, Home Lending

I’ve covered mortgages, real estate and personal finance since 2020. At Bankrate, I’m focused on all of the factors that affect mortgage rates and home equity. I enjoy distilling data and expert advice into takeaways borrowers can use. Prior to Bankrate, I wrote and edited for Rocket Mortgage/Quicken Loans. My work has been published by Business Insider, Forbes Advisor, SmartAsset, Crain’s Business and more.

Read more from Andrew Dehan

Edited by: Laurie Richards, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English. 

Read more from Laurie Richards