Current New Mexico Mortgage and Refinance Rates
Mortgage interest rates currently average 6.06% for 30-year fixed loans and 5.22% for 15-year fixed loans.
Refinance rates in New Mexico
30-year FIXED
Current refinance rates are averaging:
6.48%
15-year FIXED
Current refinance rates are averaging:
6.06%
- A rate-and-term refinance — one that isn’t a cash-out refi or streamline loan — can get you into a lower interest rate and/or monthly payment. In New Mexico, refinance rates are slightly lower than mortgage purchase rates.
- A cash-out refinance allows you to tap a portion of your home equity. These loans give you a lump sum of money to pay off your current mortgage, plus extra cash you can use for other purposes (like consolidating credit card debt or funding a business venture). Generally, they have higher rates than rate-and-term refinances.
- Conventional refinances aren’t backed by government programs, unlike VA and FHA loans, but they tend to have higher rates than the government-backed options, sometimes by more than a percentage point.
- FHA refinances are insured by the Federal Housing Administration (FHA) and have less stringent requirements than conventional refinances. In New Mexico, FHA refinance rates are often about 1 percentage point lower than conventional refinance rates.
- VA refinance loans are backed by the U.S. Department of Veterans Affairs (VA), and VA rates tend to be lower than other loan types. Even with a lower credit score below 600, a qualified New Mexico borrower could be approved for a VA loan with a competitive mortgage rate.
See whether refinancing makes sense for you using our mortgage refinance calculator.
What is the current mortgage rates forecast?
LendingTree’s current 2026 mortgage rate predictions state that rates will remain around 6.0% in early 2026 after three rate cuts by the Federal Reserve in late 2025.
Home affordability and inflation are not expected to improve in the near future either, so New Mexicans looking to purchase a home this year should make sure their financial eligibility is strong to ensure they get the best rate and lowest monthly payment on their home loan.
How do I get the best mortgage rate for my New Mexico home loan?
If you’re looking to get better offers from mortgage lenders and save money on your loan, here are a few steps you can take to make it happen:
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Work on your credit
Credit scores play a huge role in how your mortgage rate is determined, so you’ll want to review your credit reports and see where there’s room for improvement. If your scores are 780 or higher, you’ll typically qualify for the best rates available — but for borrowers with low scores, any gain in points can help. -
Downsize
Home sale prices nearly doubled in New Mexico from 2013 to 2023, according to the Greater Albuquerque Association of Realtors. One way to bring down your rates is to borrow less money, which takes some planning in this market. To reduce your loan amount, consider buying a smaller and lower-priced home or skipping on pricey amenities. -
Put more money down
With a bigger down payment, you can borrow less, qualify for lower rates and even save money on private mortgage insurance (PMI). While you may need extra time to save more cash, you can also boost your down payment with gift funds from family or with the help of a local down payment assistance program. -
Comparison shop
You can find the best rates available by shopping around and comparing preapproval offers from multiple lenders, including credit unions. With your quotes in hand, you can use one lender’s offer to negotiate better rates with another. -
Homebuyer programs
Be sure to include New Mexico’s homebuyer programs in your loan search, since there may be a program that offers you a low rate with more flexible qualification requirements than you get from other lenders. An FHA loan or VA loan can be a great option for qualified borrowers, too. -
Apply with a cosigner
If your finances or credit aren’t in the right shape, consider applying with a cosigner. Being a cosigner is a serious legal commitment, but if you have someone who’s willing to do it, lenders will be more likely to offer you better loan terms.
Read more about our picks for the best mortgage lenders.
A mortgage rate lock is a guarantee that your mortgage rate won’t change during the time it takes you to qualify for and close on your loan. Because interest rates frequently fluctuate (as often as hourly, in some cases), a rate lock can save you a significant amount of money on interest charges. Some lenders automatically offer a rate lock, but you may have the option to pay for a rate lock extension of 30 days or more, if needed.
New Mexico home loan programs
New Mexico Mortgage Finance Authority programs
The New Mexico Mortgage Finance Authority (NMMFA) has multiple homebuyer programs you can use separately or in combination. The agency offers mortgages starting at 6.75%, as well as loans to assist with your down payment. MFA programs can be used to purchase a wide variety of residential property types, including single-family homes, condos and manufactured homes.
Who qualifies
Borrowers must:
- Have a minimum 620 credit score in most cases
- Qualify based on income limits for their county
- Complete prepurchase homebuyer counseling
Mortgage Reduction Assistance
The Santa Fe Community Housing Trust (SFHT) offers help for homebuyers in Northern New Mexico who are struggling to save enough money for a down payment. Through its mortgage reduction assistance program, this nonprofit housing agency works to connect buyers with up to $50,000 in funds toward a down payment. SFHT gives priority to members of several groups, including veterans, first responders, applicants with HIV/AIDS and low-income households.
Who qualifies
Borrowers must:
- Have lived in Santa Fe County or the surrounding area for at least three years
- Have a low to moderate income
Homewise
Homewise offers home loans with low down payments and no mortgage insurance. Down payment loans are also available with 0% interest, and some borrowers can even get a home loan with a below-market interest rate through Homewise.
In addition, the agency’s New American Lending Program grants loans to buyers who don’t have Social Security numbers (an ITIN is accepted instead). Further, Homewise also has special financing for first responders and employees of Santa Fe Public Schools and Christus St. Vincent Regional Medical Center.
Who qualifies
Borrowers must:
- Make a down payment of 2% to 5% of the home’s sales price
- Complete a homebuyer education workshop from Homewise
- Have a minimum 640 credit score for certain loan programs
Learn about different types of New Mexico mortgage loans
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New Mexico conventional loans
Conventional loans are the most common type of mortgages offered through banks and credit unions. Each lender has its own requirements to determine who qualifies but you’ll often need a minimum 620 score and at least a 3% down payment to be eligible for one of these loans. -
New Mexico FHA loans
It’s easier for many buyers with poor credit to qualify for FHA loans than for conventional loans. If your credit scores are between 500 and 579, you’d need a 10% down payment. But with scores at 580 or higher, the down payment requirement drops to 3.5%. -
New Mexico VA loans
If you’re a service member or veteran you might prefer to go through the VA for your mortgage. You can qualify for a VA loan with no down payment or mortgage insurance on the loan, and may even be able to qualify with credit scores as low as 500. -
New Mexico USDA loans
For low- and very-low-income borrowers, the USDA’s Single Family Housing Direct home loan program can help you buy a home in rural New Mexico. There’s no down payment required to qualify for this USDA loan program and these loans have an ultra-low, 4.5% interest rate. -
New Mexico streamline refinances
Streamline refinancing lets you refinance your mortgage with less paperwork and underwriting than other refinance loans. If you have an FHA loan, you might be eligible for an FHA streamline refinance. Meanwhile, VA loan borrowers can take advantage of a VA interest rate reduction refinance loan (IRRRL).