HELOC rates in New Mexico rose from 4.1% in late 2020 to 9.3% by November 2024. If this upward trend continues, homeowners might face increased borrowing costs. Consider locking in current rates to avoid future hikes.
HELOC
Best HELOC Rates in New Mexico (December 2024)
Updated: December 21, 2024
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Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in New Mexico with an 80% LTV is 8.4%, compared with 8.8% for a 90% LTV.
HELOC rates vary by city in New Mexico. Los Lunas has an average APR of 8.2%, whereas Roswell's is 9.8%.
Different lenders offer varying rates for the same loan types. Santa Fe Federal Credit Union's average APR is 7.5%, whereas WestStar Bank's is 9.8%.
Current HELOC Rates in New Mexico
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HELOC Rates in New Mexico by LTV Ratio
HELOC rates in New Mexico vary depending on your loan-to-value ratio and line limit. A lower LTV ratio means you have more equity, which reduces lender risk. For instance, an 80% LTV is less risky than a 90% LTV, making you less likely to default on your HELOC.
The following table lets you filter between different loan amounts, offering a clearer view of what you may qualify for:
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Line Limit:$100,000
| 8.5% | 9.0% |
HELOC Rates in New Mexico by City
HELOC rates in New Mexico vary by city due to local housing markets and lender competition. For instance, cities with robust real estate markets may offer lower rates.
Use the table below to filter by your city and view average APRs for $50K and $100K HELOCs.
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City:Albuquerque
| $100,000 | 8.7% |
| $50,000 | 8.7% |
HELOC Rates in New Mexico by Lender
HELOC interest rates in New Mexico vary among lenders due to distinct pricing strategies and risk assessments. Explore the table below for the lenders in New Mexico offering the lowest average APRs, allowing you to compare competitive rates.
| Santa Fe Federal Credit Union | 7.5% |
| The Citizens Bank of Clovis | 7.8% |
| Kirtland Federal Credit Union | 7.8% |
| BOKF | 8.1% |
| CNB Bank | 8.3% |
HELOC rates today can vary between lenders in the same city. Use the table below to filter lenders by city and compare average APRs, helping you find the best rate in your area.
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City:Albuquerque
| Santa Fe Federal Credit Union | Credit Union | 7.5% |
| Kirtland Federal Credit Union | Credit Union | 7.8% |
| BOKF | Commercial Bank | 8.1% |
| Sandia Area Federal Credit Union | Credit Union | 8.3% |
| First National Bank Texas | Commercial Bank | 8.5% |
| Mountain America Federal Credit Union | Credit Union | 8.5% |
| Nusenda Federal Credit Union | Credit Union | 8.5% |
| Rio Grande Credit Union | Credit Union | 8.6% |
| BMO BANK NATIONAL ASSOCIATION | Commercial Bank | 8.9% |
| U.S. Eagle Federal Credit Union | Credit Union | 9.0% |
| Navy Federal Credit Union | Credit Union | 9.1% |
| U.S. Bank National Association | Commercial Bank | 9.2% |
| America First Federal Credit Union | Credit Union | 9.2% |
| Century Bank | Commercial Bank | 9.7% |
| PNC Bank | Commercial Bank | 9.8% |
COMPARING HELOC RATES IN NEW MEXICO: BANKS VS. CREDIT UNIONS
HELOC rates in New Mexico vary between banks and credit unions. Commercial banks typically offer higher rates, with the best rate currently at 8.7%. In contrast, credit unions in New Mexico offer an average APR of 8.5%, benefiting from their not-for-profit status.
When deciding between banks and credit unions, consider more than just rates. Banks may provide greater convenience, while credit unions often excel in customer service and lower fees. Evaluate membership requirements, potential hidden fees, and rate adjustments with both types of lenders.
Ask the experts:
What are the primary factors that influence HELOC rates, and how can homeowners ensure they get the best rate?
Credit & Mortgage Expert
There are many factors that influence HELOC rates, but the most critical are the following:
Credit score is a crucial factor in determining your interest rate for a HELOC. The higher your credit score, the lower rate you will qualify for. Shoot for a 760 credit score or higher.
Debt-to-income is a vital factor. If the lender doesn’t think you have the ability to repay the debt, you will be denied. Focus on paying off as many credit cards or loans as possible before applying for a HELOC.
Loan-to-value — how much money you borrow based on how much your home is worth plays a large role in interest rate. The more you take out, the higher the risk is for the lender, which translates to a higher interest rate for your loan.
HELOC Payment Calculator
HELOCs have become a popular tool for homeowners across the U.S. looking to tap into their home's equity. Use our New Mexico HELOC payment calculator to estimate your monthly payments based on draws, loan terms, and APR. It also shows an amortization schedule and divides payments between principal and interest over time. Understanding these details can help you manage your HELOC effectively.
New Mexico HELOC Payoff Calculator
This HELOC payment calculator assumes that you take out one lump sum at the start of your interest-only period. Your actual payoff schedule will vary depending on your interest rate and market conditions.
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How to Get the Best HELOC Rates in New Mexico
Finding the best HELOC rates in New Mexico can lead to significant savings. For instance, a lower rate can reduce your monthly payments, freeing up funds for other needs. Consider these five strategies to secure competitive rates:
Maintain a strong credit score
The average credit score in New Mexico is 702. Improving it can help you secure better rates from lenders.
Compare offers from multiple lenders
Shopping around can help you find competitive rates and use offers to negotiate better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income (DTI) ratios show financial stability. Paying off debt can make you a more attractive candidate.
Increase your home equity
More equity means less risk for lenders. Paying down your mortgage or making home improvements can help.
Review closing costs and rate caps
Closing costs affect loan expenses. Understanding rate caps helps manage costs as rates adjust.
HELOC Loan Rates vs. Home Equity Loan Rates in New Mexico
HELOC interest rates in New Mexico average 8.6%, which is higher than the 8.1% average for home equity loans. The difference arises from HELOCs' variable rate structure versus the fixed rates of home equity loans.
- HELOCs are flexible, revolving credit lines with variable interest rates that can rise with market conditions. In rising interest rate environments, this can lead to increased costs, affecting homeowners' long-term finances.
- Home equity loans provide a lump sum with a fixed interest rate, offering predictability throughout the loan term. They are ideal for those who prefer stable payments or need a specific amount for a large expense.
When deciding between these options, consider your financial goals, risk tolerance, and whether you prioritize flexibility or stability. Evaluate your home's equity to determine how much you can borrow and choose the product that aligns with your needs.
CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE
Cash-out refinance is a HELOC alternative that replaces your existing primary mortgage with a new, larger loan, allowing you to access cash. Unlike HELOCs or home equity loans, cash-out refinances create a new primary mortgage.
For instance, if you have a loan backed by the Federal Housing Administration (FHA) and your home is valued at $300K with a $150K mortgage balance, an FHA cash-out refinance for $200K could give you $50K in cash, but your new loan payments will be based on $200K.
FAQ: Best HELOC Rates in New Mexico
What are the current HELOC rates in New Mexico and how do they compare to national rates?
New Mexico's HELOC rates average 8.6%, slightly higher than the national average of 8.3%.
What fees are commonly associated with HELOCs in New Mexico?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
How do HELOC rates in New Mexico compare to home equity loan rates?
New Mexico's HELOC rates average 8.6%, while home equity loan rates are lower at 8.1%, which may benefit those with bad credit.
How do HELOC Rates in New Mexico vary between banks and credit unions?
Commercial banks in New Mexico offer HELOC rates averaging 8.7%, while credit unions offer lower rates at 8.5%.
What's the best HELOC rate in Albuquerque? How does it compare to the current HELOC rate in New Mexico?
Albuquerque's rates average 8.6%, which aligns with the overall average HELOC rate in New Mexico.
MoneyGeek examined 24 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 line of credit rates.
This data is accurate as of December 13, 2024.
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About Zachary Romeo, CBCA
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.