Home Equity Loan Rates in New Mexico

Tappable equity is the portion of your home’s value you can borrow. A home equity loan (HEL) lets you access this equity to fund home improvements or consolidate debt.

New Mexico's home equity loan rates are slightly above national averages — 7.8% APR for a 10-year term (7.7% nationally) and 8% APR for a 15-year term (7.9% nationally). We provide details on current rates in New Mexico, including city-specific averages, top lenders and tips on securing the best deal.

Key Takeaways

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Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a 15-year HEL in New Mexico with an 80% LTV is 7.8%, compared to 8.3% for a 90% LTV.

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HEL rates vary by city in New Mexico. For example, for 15-year loans, Kirtland AFB has an average APR of 6.8%, while Santa Teresa's is 9.4%.

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Lenders offer different rates for the same loan types. Sandia Area Federal Credit Union's average APR is 6.6%, whereas PNC Bank's is 9.6%.

MoneyGeek examined 16 different banks and credit unions in New Mexico using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity loan rates.

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This data is accurate as of November 2024.

16Lenders Analyzed

Current Home Equity Loan Rates in New Mexico

The current average APR for a 15-year home equity loan in New Mexico is 8%, but several factors can influence lenders' rates. A higher credit score typically means a lower APR, while larger loan amounts may result in higher rates. Repayment terms also affect the APR. Use the table below to compare average APRs for home equity loans in the state by loan term.

10Year7.8%
15Year8.0%
5Year8.1%

New Mexico HEL interest rates change daily, so staying updated can save you money over the life of the loan. Knowing current rates also helps you plan your budget and borrow responsibly.

For example, a $50,000 home equity loan with a 15-year term at 8% APR has a $478 monthly payment and $36,009 in total interest. A 10-year loan at 7.8% APR has a $601 monthly payment and $22,164 in total interest.

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HOME EQUITY LOANS VS. HELOCS IN NEW MEXICO

Home equity loans and home equity lines of credit (HELOCs) let homeowners access their property's equity. Home equity loans typically have fixed rates, averaging 7.8%, while HELOC rates in New Mexico are variable, averaging 8.7%.

Home equity loans offer stability with fixed rates, while HELOCs provide flexibility with variable rates, which can start lower but may increase, leading to higher payments over time.

Home Equity Loan Rates by LTV Ratio

The rate you qualify for depends on your loan-to-value (LTV) ratio, which is the amount you owe on your mortgage compared to your home's appraised value. To calculate your LTV ratio, divide your current mortgage balance by your home's appraised value and multiply by 100. For instance, if your home is valued at $300,000 and you owe $240,000, your LTV ratio is 80%.

Lenders view higher LTV ratios as riskier, which leads to higher rates. In New Mexico, the average APR for a 15-year home equity loan with an 80% LTV is 7.8%, compared to 8.3% for a 90% LTV. Use the table below to compare average rates based on LTV ratios.

Data filtered by:Results filtered by:
Repayment Terms:
Repayment Terms:15Year
7.8%8.3%

Home Equity Loan Rates by City in New Mexico

Average APRs vary by city due to lender competition and local costs. Larger, densely populated cities often have more lenders, leading to lower rates. Property taxes and local fees also impact borrowing costs.

In New Mexico, Kirtland AFB's average APR for 15-year loans with an 80% LTV is 6.8%, while Santa Teresa's is 9.4%. The table below shows average home equity loan rates across cities in New Mexico by loan term.

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City:
City:Albuquerque
10Year7.9%
15Year8.1%
5Year8.1%

Home Equity Loan Lenders in New Mexico

Home equity loan rates in New Mexico vary among lenders and are shaped by their policies and market strategies. Sandia Area Federal Credit Union offers the lowest average APR at 6.6%, while PNC Bank has the highest at 9.6%.

Compare rates and terms from different lenders to find the best deal. Use the interactive table below to discover the most competitive lenders in your city.

Data filtered by:Results filtered by:
City:
City:Albuquerque
Sandia Area Federal Credit Union6.6%
Kirtland Federal Credit Union7.1%
Rio Grande Credit Union7.1%
U.S. Eagle Federal Credit Union7.2%
State Employees Credit Union7.5%
Navy Federal Credit Union7.6%
Nusenda Federal Credit Union7.8%
America First Federal Credit Union8.0%
Mountain America Federal Credit Union8.0%
BMO BANK NATIONAL ASSOCIATION8.5%
Century Bank8.8%
U.S. Bank National Association9.0%
BOKF9.2%
PNC Bank9.6%
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COMPARING HOME EQUITY LOAN RATES: BANKS VS. CREDIT UNIONS

Credit unions often offer lower home equity loan rates than large banks. While commercial banks in New Mexico have an average APR of 9%, credit unions typically offer a lower rate of 7.5%. However, credit unions often have stricter membership requirements.

How to Get the Best Home Equity Loan Rate in New Mexico

Getting the best home equity interest rates can reduce your monthly payments and overall costs, freeing up funds for other financial goals. To secure the best rates, consider these strategies:

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    Compare lenders

    Lenders may offer different APRs for the same loan amount and credit profile. For instance, Rio Grande Credit Union has an average APR of 7.1%, while PNC Bank offers 9.6%. Compare home equity loan providers to find better rates.

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    Increase your home's equity

    Having more equity in your home can result in more competitive rates from lenders. New Mexico homeowners can increase their home's equity by installing solar panels or creating outdoor living spaces.

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    Improve your credit score

    Increasing your credit score can lead to more competitive home equity loan rates. Pay bills on time and reduce credit card debt to improve your credit score. The average credit score in New Mexico is 702, according to Experian.

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    Decrease your debt-to-income ratio

    A lower debt-to-income (DTI) ratio — the percentage of your monthly income used to pay debts — can lead to better rates, as lenders see you as a less risky borrower.

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FAQ About Home Equity Loan Rates in New Mexico

MoneyGeek addresses common homeowner questions about home equity loan rates, providing precise and reliable information for New Mexico residents.

What is the interest rate on a home equity loan in New Mexico?

How do you calculate your home equity in New Mexico?

Do home equity loan rates vary between cities in New Mexico?

Does a home equity loan in New Mexico have tax benefits?

What are possible drawbacks of securing a home equity loan in New Mexico?

How long does it take to get a home equity loan in New Mexico?

How do you get a home equity loan in New Mexico?

What can I use my funds for? Are there any home equity loan use restrictions in New Mexico?

Can you take out a home equity loan in New Mexico only on your primary residence?

What other home equity products can you consider if you want to tap into your home's equity in New Mexico?

What's the difference between a HELOC and a home equity loan?

About Zachary Romeo, CBCA


Zachary Romeo, CBCA headshot

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.


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