New Mexico Mortgage Calculator
Calculate your New Mexico mortgage payment with PMI, property tax, and closing costs.
Useful for home buyers in Albuquerque, Las Cruces, Santa Fe, Rio Rancho, Roswell, and all of New Mexico.
Useful for home buyers in Albuquerque, Las Cruces, Santa Fe, Rio Rancho, Roswell, and all of New Mexico.
Why use a New Mexico Mortgage Calculator?
New Mexico has a property tax rate of around 0.78%, below the national average. This calculator estimates your payment, PMI, property tax, and closing costs for New Mexico properties.
New Mexico has a property tax rate of around 0.78%, below the national average. This calculator estimates your payment, PMI, property tax, and closing costs for New Mexico properties.
Result
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New Mexico Property Tax: The average effective property tax rate is about 0.78%, below the national average. Closing costs in NM are typically 2-4% of the purchase price.
Average Home Prices in Major New Mexico Cities (2024)
| City | Detached | Semi-Detached | Townhouse | Condo |
|---|---|---|---|---|
| Albuquerque | $350,000 | $300,000 | $275,000 | $250,000 |
| Las Cruces | $320,000 | $280,000 | $250,000 | $230,000 |
| Santa Fe | $580,000 | $480,000 | $420,000 | $380,000 |
| Rio Rancho | $330,000 | $290,000 | $260,000 | $240,000 |
| Roswell | $250,000 | $220,000 | $200,000 | $180,000 |
Note: Prices are approximate averages for 2024 and may vary by neighborhood and property features.
How Mortgage Rules Work in New Mexico
- Property Tax: New Mexico's average effective property tax rate is about 0.78%, below the national average. Property taxes are paid twice a year (November and April) and may be included in your monthly payment.
- Homestead Exemption: New Mexico offers a $2,000 reduction in taxable value for your primary residence.
- PMI (Private Mortgage Insurance): If your down payment is less than 20%, you must pay PMI, which is added to your monthly payment until you reach 20% equity.
- Closing Costs: New Mexico's closing costs include title insurance, appraisal fees, and recording fees, typically 2-4% of the purchase price.
Example: On a $350,000 home with 10% down in Albuquerque, you pay PMI and property tax. Annual property tax would be approximately $2,730, and the homeowner would qualify for the $2,000 homestead exemption.
Frequently Asked Questions
New Mexico property taxes are based on the assessed value of your property, which is set at one-third of the market value. Once the assessed value is determined, it's multiplied by the local tax rate (called millage). The state imposes a 3% annual cap on increases in assessed value for residential properties. Additionally, New Mexico offers a $2,000 reduction in taxable value for your primary residence through the Head of Family Exemption, and additional exemptions are available for veterans and disabled persons. Property tax bills are sent annually but can be paid in two installments (November and April).
No, New Mexico does not impose a state-level transfer tax or documentary stamp tax on real estate transactions, which is a significant advantage compared to many other states. However, there are still recording fees when filing the deed and mortgage documents with the county clerk. These fees are relatively modest and typically range from $25 to $50 for standard transactions. The absence of transfer taxes helps keep closing costs lower in New Mexico compared to states with such taxes.
New Mexico offers several programs to assist homebuyers:
- MFA FirstHome Program: Offers competitive interest rates and down payment assistance for first-time homebuyers.
- HomeNow Program: Provides down payment assistance of up to $8,000 as a second mortgage with no monthly payments.
- NextHome Program: Available to both first-time and repeat homebuyers with up to 3% down payment assistance.
- HOMENow Program: Offers down payment assistance of up to $8,000 for qualified buyers.
- Native American Mortgage Program: Specifically designed for Native American homebuyers purchasing on or off tribal lands.