New Mexico Mortgage Calculator
Mortgage is next to the only affordable option for low to average income home buyers in many parts of New Mexico and the rest of the United States. On this page we offer a convenient New Mexico home loan calculator to gauge your potential expenses, and up-to-date answers to several frequently asked questions concerning buying a house in New Mexico.
| Total principal & interest | $0 |
| Monthly payment | $0 |
| Total interest paid | $0 |
| Payoff date | Date |
Detailed payment info
| Date | Payment | Principal Paid | Interest Paid | Remaining Balance |
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Best mortgage lenders in New Mexico
The top mortgage lenders in New Mexico operate nationwide. These include such recognizable names as Rocket Mortgage, AmeriSave, Paddio®. Several lesser known but trustworthy options include New Mexico-based New Mexico Mortgage Company, Infiniti Mortgage LLC.
How to calculate mortgage payment in New Mexico
Use our fast mortgage calculator NM to evaluate your future monthly expenses. Detailed step-by-step instructions are provided below for your convenience.
Why and How to Use Our Mortgage Calculator
Use our house payment calculator New Mexico for thorough planning of your future spendings. Let’s take a closer look at each field in order to gain a better understanding of the mortgage in New Mexico parameters.
- Home Price. This represents the total amount you intend to spend on your future property. A down payment is the upfront portion of this price. To avoid costly insurance, it is advisable to aim for a minimum 20% down payment, especially when considering a conventional loan. This means that the remaining amount constitutes the principal, typically 80% of the home price if you've put down 20%.
- Loan Term. The loan term refers to the period during which you will fully repay your mortgage through scheduled payments. Fixed-rate conforming loans typically have a maximum term of 30 years, while adjustable-rate options usually have shorter terms.
- Interest Rate. The interest rate is a fixed or variable percentage of the principal amount that you must pay over the loan's duration. It's worth mentioning that you are actually charged an annual percentage rate (commonly abbreviated as APR), which is not precisely the same as the interest rate. The APR includes various fees, such as origination fees, closing costs, insurance payments, and more, in addition to the interest rate.
For more precise assessment, the interest rate used for these calculations is based on the current mortgage rates in New Mexico, given a $400,000 home price and a 10% down payment.
Median property taxes in New Mexico counties
The property tax is another important factor when choosing your future home. Many lenders insist on setting up a mortgage escrow account to ensure that the borrower keeps up with property tax and insurance costs.
| County | Avg. property tax rate | Avg. home value |
|---|---|---|
| Bernalillo County | $1,530 | $198,000 |
| Catron County | $294 | $164,600 |
| Chaves County | $505 | $120,100 |
| Cibola County | $444 | $89,800 |
| Colfax County | $458 | $105,900 |
| Curry County | $551 | $131,200 |
| De Baca County | $396 | $67,700 |
| DoÒa Ana County | $788 | $145,200 |
| Eddy County | $419 | $143,100 |
| Grant County | $467 | $125,300 |
| Guadalupe County | $460 | $81,100 |
| Harding County | $255 | $67,800 |
| Hidalgo County | $393 | $81,200 |
| Lea County | $384 | $148,500 |
| Lincoln County | $692 | $171,900 |
| Los Alamos County | $1,446 | $285,300 |
| Luna County | $458 | $83,800 |
| McKinley County | $870 | $72,300 |
| Mora County | $493 | $109,100 |
| Otero County | $601 | $118,000 |
| Quay County | $325 | $72,200 |
| Rio Arriba County | $508 | $167,100 |
| Roosevelt County | $398 | $114,300 |
| Sandoval County | $1,256 | $198,800 |
| San Juan County | $628 | $156,300 |
| San Miguel County | $570 | $132,900 |
| Santa Fe County | $1,148 | $292,600 |
| Sierra County | $501 | $99,600 |
| Socorro County | $538 | $103,000 |
| Taos County | $652 | $218,400 |
| Torrance County | $523 | $111,700 |
| Union County | $429 | $89,500 |
| Valencia County | $756 | $131,100 |
Source: American Communities Survey 2016, U.S. Census
New Mexico Housing Market 2024
Over the past year, there has been a significant upswing in the housing market's value in New Mexico, further accentuating a well-established trend that was accelerated by the impact of the COVID-19 pandemic. However, it's worth noting that the rate of growth has decelerated when compared to the previous year. Simultaneously, both home purchase and refinance rates have been steadily climbing for a considerable period and are anticipated to continue their ascent in the near future. This dynamic housing market presents evolving opportunities and considerations for prospective buyers and homeowners.
How do I calculate my mortgage payment?
The most convenient way to do this is to make use of our calculator. It's powered by a simple formula, which you can also use to calculate the amount to be paid by hand:
M = P*i(1 + i)^n / (1 + i)^n – 1
M – estimated monthly mortgage payment;
P – principal;
I – monthly interest rate (to determine it, divide your annual mortgage rate by 12);
N – the loan term expressed in months (in other words, the overall number of monthly payments)
Imagine you are applying for a 15-year mortgage loan with a fixed 6.99% APR (which is .0699 as a unit fraction). The house costs $500k, with 10% ($50,000) to be paid down. The principal amount (P) will be equal to 90% of the initial home cost ($500,000 – $50,000 = $450,000).
I = .0699 % / 12 = .005825%.
Finally, let’s convert the loan length from years to months: N = 15 * 12 = 180.
M ($) = 450,000*.005825(1 + .005825)^180 / (1 + .005825)^180 – 1 ≈ 4042.
So, you are going to pay about $4042 a month.
It is important to note that the calculated M value is approximate, as no extra fees are taken into account.
Tips for first-time home buyers in New Mexico
First, several federal agencies such as USDA, FHA and VA provide loan guarantees for selected borrowers. Many first-time homebuyers can find options which most fit their budget.
Particularly, first-time homebuyers may apply for the FirstHome program, which provides assistance with down payments and closing costs. To qualify, applicants should meet the criteria for an FHA loan and have a FICO score of at least 660. This program covers up to 6% of the loan amount, allocated towards the down payment and/or closing costs. It's important to note that this assistance takes the form of a 30-year fixed-rate second loan. If you do not qualify for the FirstHome program, do not despair. New Mexico Housing Score Loan is an alternative program that covers up to 4%. The minimum satisfactory credit score is 620.
Here are some valuable tips for first-time homebuyers:
- Obtain Pre-Approval: Get pre-approved before you start house hunting. This can boost your credibility in the eyes of home sellers. It's highly recommended to obtain pre-approval letters from not just one, but at least two or three different lenders.
- Compare Mortgage Rates: Research and compare mortgage rates from a minimum of three lenders; having more options can be advantageous.
- Conduct Preliminary Calculations: Based on the amount you've been pre-approved for, perform preliminary calculations to plan your future expenses effectively.
- Save for a Down Payment: Start saving for a down payment as early as possible. A larger down payment can reduce the principal amount, subsequently lowering your potential expenses. It's important to initiate your savings plan well in advance.
- Explore VA Loans: If you are eligible for a VA loan, consider this option as a priority.
- Consider Government-Backed Plans and Local Assistance Programs: Explore government-backed mortgage plans and local assistance programs, as they may offer attractive incentives that shouldn't be missed.
- Manage Existing Debts: If feasible, work on paying off any existing debts, as this can positively impact your financial standing during the homebuying process.