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Today's Mortgage Rates in New Mexico

Today’s mortgage and refinance rates plus current home buying and refinance advice for New Mexico residents

Buying a home in New Mexico

New Mexico state law has two disclosure requirements, the second of which is unusual. The main purpose is to make sure buyers don’t get a big shock after the purchase of their new home.
  1. In New Mexico, a seller must provide a prospective buyer with a disclosure form listing any and all material defects of which they have knowledge. A seller who knows the plumbing on the second floor has a leak, or there is rising damp behind the refrigerator in the kitchen, must inform the buyer. The disclosure requirements are detailed in New Mexico Statutes § 47-13, which is more commonly known as the Real Estate Disclosure Act. Many buyers still commission a home inspection to check for undisclosed or unknown defects
  2. New Mexico law states that a seller of a property must inform a buyer of any information about future tax burdens the buyer may or may not be aware of as the new owner of the home (New Mexico Statutes § 47-13-4)

Refinancing a home in New Mexico

New Mexicans only rarely have more problems refinancing than people in other states. For the vast majority, the process is straightforward. One exception applies to those who have a second mortgage through the New Mexico Mortgage Finance Authority (MFA). Those are often home equity loans given to first-time buyers to top up their original down payment needs. A problem may arise if the homeowner wants to keep the MFA loan when he or she wishes to refinance his or her main mortgage.


That’s because, unlike many lenders of home equity products, the MFA routinely refuses "subordination" requests. Subordination has to do with who holds the "first lien" rights, which pretty much all mortgage lenders insist must be the lender of the main mortgage. You can see why: The first-lien holder gets the first bite of the cherry if things go wrong with a loan. Other lenders get only the leftovers. Generally, if you have an MFA second mortgage you won’t be able to refinance — unless you roll up the MFA loan within your new mortgage. Few, if any, lenders of main mortgages will accept a second-lien slot.


The MFA does make exceptions in case of hardship. It defines those as: "Need for emergency home improvements; unforeseen medical needs and/or expenses; a situation that prevents foreclosure on the borrower’s first mortgage such as loss mitigation loan modification; a hardship created through divorce or legal separation; Imminent Default, or other special circumstances that may be approved by MFA." If you’re affected, check out the MFA’s website for more details.

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