Updated: November 20, 2024
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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.
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.
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%.
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.
This data is accurate as of November 2024.
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.
| 10Year | 7.8% |
| 15Year | 8.0% |
| 5Year | 8.1% |
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.
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.
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.
| 7.8% | 8.3% |
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.
| 10Year | 7.9% |
| 15Year | 8.0% |
| 5Year | 8.1% |
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.
| Sandia Area Federal Credit Union | 6.6% |
| Kirtland Federal Credit Union | 7.1% |
| Rio Grande Credit Union | 7.1% |
| U.S. Eagle Federal Credit Union | 7.2% |
| State Employees Credit Union | 7.5% |
| Navy Federal Credit Union | 7.6% |
| Nusenda Federal Credit Union | 7.8% |
| Mountain America Federal Credit Union | 8.0% |
| America First Federal Credit Union | 8.0% |
| U.S. Bank National Association | 8.4% |
| BMO BANK NATIONAL ASSOCIATION | 8.5% |
| Century Bank | 8.8% |
| BOKF | 9.2% |
| PNC Bank | 9.6% |
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.
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:
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.
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.
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.
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.
Provide your income and recurring payments to calculate your DTI.
Enter all applicable payments to ensure accurate results.
MoneyGeek addresses common homeowner questions about home equity loan rates, providing precise and reliable information for New Mexico residents.
As of November 2024, the average APRs for home equity loans in New Mexico are 8.1% for five-year, 7.8% for 10-year and 8% for 15-year terms. Rates depend on such as your credit score.
To calculate your home equity, subtract your mortgage balance from your home's current market value. Understand home equity requirements to determine how much equity you have.
Yes, rates can vary. For example, Kirtland AFB's average APR is 6.8%, while Santa Teresa's is 9.4%.
Home equity loan interest may be tax-deductible if the funds are used for home improvements.
Potential drawbacks include the risk of foreclosure if payments are missed and owing more than your home is worth if property values decline.
The process typically takes two to six weeks, depending on the lender and how prepared you are with the required documentation.
To get a loan, ensure you meet the eligibility for a home equity loan and credit score requirements. Gather the necessary documents and apply through your chosen lender.
Funds can be used for various purposes, such as home improvements or debt consolidation. However, some lenders may have restrictions.
You can apply for a home equity loan on primary residences and sometimes on second homes, though terms may vary. A cash-out refinance could be an option for investment properties.
Besides home equity loans, consider a HELOC or a cash-out refinance as another type of loan to access your home's equity.
A HELOC offers a revolving line of credit with a draw period and may have an annual fee, while a home equity loan provides a lump sum with fixed interest rates.
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.
