Summary List PlacementTable of Contents: Masthead StickyBuying a home in New Mexico
According to Zillow, the typical home value in New Mexico is lower than the typical value of $259,906 across the US. The typical home value in New Mexico is $217,355, and Zillow expects it to increase to $233,000 by September 2021.
First-time homebuyer programs in New Mexico
You might be eligible for one of the following programs through the New Mexico Mortgage Finance Authority:
FIRSTDown: Get a mortgage through the state’s FIRSTHome program and receive a loan of up to $8,000 for closing costs or a down payment. You can talk with your lender about repayment terms.
NEXTHome: Receive a loan of up to 3% of your mortgage amount for a down payment or closing costs. You don’t have to make monthly payments, and if you meet certain requirements, the government may forgive this loan.
Historic mortgage rates for New Mexico
By looking at the average mortgage rates in New Mexico since 2010, you can see trends for 30-year fixed mortgages, 15-year fixed mortgages, and 5/1 adjustable mortgages:
Seeing how today’s rates compare to historic New Mexico mortgage rates may help you decide whether you’d be getting a good deal by getting a mortgage or refinancing now.
30-year fixed rates
A 30-year fixed mortgage comes with a higher interest rate than a shorter-term fixed-rate mortgage. The 30-year fixed rates used to be higher than adjustable rates, but 30-year terms have become the better deal recently.
Your monthly payments on a 30-year term will be lower than on a shorter-term mortgage. You’re spreading payments out over a longer period of time, so you’ll pay less each month.
You’ll pay more in interest in the long term with a 30-year term than you would for a 15-year mortgage, because a) the rate is higher, and b) you’ll be paying interest for longer.
15-year fixed rates
A 15-year fixed-rate mortgage is more affordable than a 30-year term in the long run. The 15-year rates are lower, and you’ll pay off the loan in half the amount of time.
However, your monthly payments will be higher on a 15-year term than a 30-year term. You’re paying off the same loan principal in half the time, so you’ll pay more every month.
With an adjustable-rate loan, your rate stays the same for the first few years, then changes periodically. For example, your rate is locked in for the first five years on a 5/1 ARM, then your rate increases or decreases once per year.
ARM rates are at all-time lows right now, but a fixed-rate mortgage is still the better deal. The 30-year fixed rates are comparable to or lower than ARM rates. It could be in your best interest to lock in a low rate with a 30-year or 15-year fixed-rate mortgage rather than risk your rate increasing later with an ARM.
Source:: Business Insider