Mortgage Rates in New Mexico

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Contributor, Benzinga
October 25, 2021
Loan TypeRateAPR
30-year fixed N/A N/A
15-year fixed N/A N/A
7/1 ARM (adjustable rate) N/A N/A
5/1 ARM (adjustable rate) N/A N/A
Rates based on an average home price of $203,675 and a down payment of 20%.
See more mortgage rates on Zillow

New Mexico is known as the Land of Enchantment, and for good reason. Its desert landscapes and vibrant culture make it a unique place to call home. Here’s an overview of the mortgage rates New Mexico home buyers can expect.

What is a Mortgage Rate?

Your mortgage rate refers to the amount of interest you pay on your mortgage. Your lender provides a lump sum of money upfront when you buy or refinance your home. You repay the lender over time for the loan. Lenders want to make a profit and cover expenses and they charge interest on the loan to do that. 

Some mortgage quotes may also show an APR. Your APR will typically include all the expenses associated with your monthly mortgage payment. This may include your homeowners insurance and your private mortgage insurance payments. 

What Factors Impact Your Mortgage Rate?

Several factors impact your mortgage rate — and you can control some of these factors. For example, you can improve your debt-to-income ratio by paying off debt or increasing your income. However, some of these factors are outside of your control. 

  • Inflation: Inflation refers to how much items cost over time. For example, gas used to cost less than $1 per gallon. Today, it’s $2–$3 or more. Lenders need to make sure interest outpaces inflation so they continue to make a profit. 
  • Economic conditions: The unemployment rate and economic growth also impact mortgage rates. Interest rates tend to go up when the economy is booming since more people can afford a mortgage. On the other hand, interest rates go down to encourage people to buy homes when the economy takes a downturn. 
  • Bond rates: Investors view mortgages as a long-term investment. When bond interest rates go up, mortgage rates typically go up to stay competitive, too. 
  • Your credit history: Your credit history influences the interest rate lenders offer you. You’ll be offered a lower interest rate if you have a history of making payments on time and you handle your credit responsibly.
  • Your debt and income: Lenders compare your debt payments to your pretax income. Large amounts of debt means that lenders may offer you a higher interest rate. Lenders look for your total debt to be about 43% or less of your monthly pre-tax income. Some lenders might allow you to carry debt up to 50%. 
  • Your down payment: Lenders may offer you a lower interest rate if you make a down payment of 20% or more. This is because a bigger down payment lowers the risk to the lender. The lender doesn’t have to pay as much toward your home. A large down payment also shows lenders that you’re serious about your home purchase. 

Interest rates also vary from lender to lender. That’s why it’s essential to get a purchase quote or a refinance quote from multiple lenders. 

What is a Mortgage Type?

You should choose the mortgage type that’s the best fit for your financial situation. Here are the most common types of mortgages.


A conventional mortgage is a mortgage that isn’t backed by a federal government agency. Conventional mortgages may require a higher credit score than government-backed mortgages. You may also be required to make a higher down payment of 20% to qualify. 


The Federal Housing Administration insures FHA loans. FHA loans are designed to help people purchase a home who might not be able to qualify for a conventional mortgage. You can make a down payment of as little as 3.5% if you have a credit score of 580 or higher. If your credit score is 500–579, you may still qualify if you can make a down payment of 10% or more. 


The U.S. Department of Agriculture insures USDA mortgages. These mortgages help low- to moderate-income borrowers buy a home in a rural area. You may not need to make a down payment to meet the USDA income requirements. 


The Department of Veterans Affairs backs VA loans. These loans are available to qualifying veterans, service members and spouses. VA mortgages don’t require a down payment and also offer competitive rates. 

Private lenders offer FHA, USDA and VA mortgages. The appropriate government agency must approve these lenders. 

What is a Mortgage Term?

A mortgage term is how long your mortgage will last if you only make the minimum monthly payments. You own your house outright and your loan is paid off at the end of your mortgage term. You can accelerate the process by making extra payments. Here are a few common mortgage terms — keep in mind that you’ll pay more interest over the life of your mortgage if you have a longer term.

  • 30-year fixed: A 30-year fixed-rate mortgage has the same interest rate for the life of the mortgage. Let’s say you only make the required monthly payments — you’ll have the loan paid off in 30 years. These mortgages have the lowest monthly payments. They may have higher interest rates than shorter mortgage terms. 
  • 15-year fixed: A 15-year fixed-rate mortgage has the same interest rate for all 15 years of your mortgage. Since the term is shorter, 15-year mortgages have a lower interest rate than 30-year mortgages. These mortgages have higher monthly payments. 
  • 5/1 ARM: ARM refers to an adjustable-rate mortgage. ARMs often start with an introductory period with a fixed rate. A 5/1 ARM has a fixed rate for the first 5 years. After that, the interest rate will adjust up or down once per year. The introductory period rate may be lower than a comparable fixed-rate mortgage.

Current Mortgage Rates in New Mexico

Mortgage rates change daily. Sometimes they even change multiple times per day. Lenders adjust rates to reflect market changes. Even small interest rate changes make a big difference over the term of your mortgage. Since mortgage rates change frequently, we update these rates to reflect the most relevant data. 

Loan TypeRateAPR
30-year fixed N/A N/A
15-year fixed N/A N/A
7/1 ARM (adjustable rate) N/A N/A
5/1 ARM (adjustable rate) N/A N/A
Rates based on an average home price of $203,675 and a down payment of 20%.
See more mortgage rates on Zillow

Calculating Interest in New Mexico

Lenders calculate your interest every month. Each month, your payment goes toward interest, your loan balance and other expenses like property taxes. Your loan balance gets lower each month, which means that each month, you pay less interest and more toward your balance. That process will go faster if you have a shorter loan term. Here’s how much you might pay in interest in 4 New Mexico cities.

CityAverage Home ValueLoan TermCurrent RateDownpayment (20%)Monthly PaymentTotal Interest Paid
Albuquerque $204,60030-year fixed6.681%$40,920$1,054.13$215,806.80
Las Cruces $169,00030-year fixed6.375%$33,800$843.47$168,449.20
Rio Rancho $196,50030-year fixed6.375%$39,300$980.72$195,859.20
Santa Fe $383,10030-year fixed6.681%$76,620$1,973.79$404,084.40
See more mortgage rates on Zillow

Lender Credit Score Minimums in New Mexico

Your credit score is a 3-digit number that’s shorthand for your credit history. Lenders use this number to decide on your interest rate. Lenders also have a minimum credit score requirement. You’ll need to improve your score before you can qualify for a mortgage if you don’t have the minimum credit score. Here are the minimum credit scores required from a few New Mexico lenders.

LenderMinimum Credit Score Required
Guaranteed Rate620
Quicken Loans
Best For
  • Online Service

5 Best Mortgage Lenders in New Mexico

It can take time to find the best mortgage companies. We’ve researched New Mexico lenders and found the best 5. 

1. Best Overall: Quicken Loans®

Quicken Loans® offers a convenient online application process to get a mortgage. It’s a major draw for homebuyers since employment and income can be instantly verified for over 60% of U.S. applicants and can speed up the loan processing time.

Quicken Loans® is one of the top lenders across the nation, particularly for FHA loans. It offers FHA, VA, USDA, conventional fixed, jumbo and refinancing loans.

You’ll need a 620 credit score for approval (580 for FHA loans) and should be ready to provide a down payment of 3%. On the downside, Quicken Loans® does not offer home equity loans or HELOCs and does not consider alternative credit.

2. Best for First Time Homebuyers: Wells Fargo

Wells Fargo has branches throughout New Mexico — it’s a great lender for first time buyers.

You can talk to a loan officer in person. You might prefer to complete your application online and you can do that, too. Wells Fargo offers conventional, FHA and VA mortgages. It’s also an approved lender for the New Mexico Mortgage Finance Authority. The Mortgage Finance Authority offers the state’s homebuyer assistance programs

Flagstar Mortgage
Best For
  • Specialized Loan Products
securely through Flagstar Mortgage's website

3. Best for Fast Processing: Flagstar Bank

Flagstar Bank offers an online application process.

It offers a wide variety of mortgages, including a 7/1 ARM and specialty loans for professionals. It also has an impressive average number of days to close a loan — just 3. Many lenders require an average of 30 days or more.  

Academy Mortgage Corporation
securely through Academy Mortgage Corporation's website

4. Best for Low Credit Scores: Academy Mortgage Corporation

FHA mortgages have low credit score requirements.

Academy Mortgage Corporation is experienced with FHA mortgages as well as VA and USDA mortgages.

It also offers educational resources on its website, including how-to videos. Academy Mortgage Corporation also offers conventional mortgages if those are a better fit. 

5. Best for VA Mortgages: Veterans United

If you’ve logged some time in the military, Veterans United’s loans will likely be the best deal. Unlike other veteran-marketed loan programs, Veterans United only accepts active duty and veteran military members.

In addition to no-down-payment loans, you’ll also eliminate the private mortgage insurance you’ll have to pay with other mortgages.

Veterans United is also more forgiving of lower credit scores. Interest rates are lower than average.

Choose the Right New Mexico Mortgage

Finding a New Mexico mortgage takes time. Talk to multiple lenders and review each quote carefully. Look for fees, credits and discounts. Keep those in mind as you compare quotes. A lower interest rate may not be helpful if that lender charges twice as much in fees. Consider the service you receive from each lender. Ultimately, trust your gut and choose the mortgage that’s the best fit for you.  

Get Ready for Take Off

Rocket Mortgage® is an online mortgage experience developed by the firm formerly known as Quicken Loans®, America’s largest mortgage lender. Rocket Mortgage® makes it easy to get a mortgage — you just tell the company about yourself, your home, your finances and Rocket Mortgage® gives you real interest rates and numbers. You can use Rocket Mortgage® to get approved, ask questions about your mortgage, manage your payments and more.

You can work at your own pace and someone is always there to answer your questions — 24 hours a day, 7 days a week. Want a fast, convenient way to get a mortgage? Give Rocket Mortgage® a try.

About Melinda Sineriz

Melinda specializes in writing about mortgages. student loans, personal loans, insurance, managing credit and debt, and credit cards.