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The world of home loans can be complex, and jumbo loans add an extra layer of lingo and special requirements. This guide aims to help homebuyers understand jumbo loan limits in New Mexico, how jumbo mortgages differ from conforming loans, and how to effectively use a jumbo loan calculator to make informed financial decisions.
Key Points
• Jumbo loans are required for large amounts that exceed the conforming loan limit, which is $806,500 throughout New Mexico.
• A significant down payment (at least 10%) and substantial cash reserves are often necessary to qualify.
• A jumbo loan calculator helps borrowers assess affordability and explore different loan programs and scenarios.
• This jumbo mortgage calculator includes property tax, but not homeowners insurance or HOA fees.
New Mexico Jumbo Loan Calculator
Calculator Definitions
• Jumbo loan: A jumbo loan is a mortgage exceeding the conforming loan limits set by the Federal Housing Finance Agency (FHFA). In most New Mexico counties in 2025, the limit is $806,500 for a single-family home.
• Home price: The home price is the agreed-upon purchase price between the buyer and seller. It may differ from the initial listing price and your offer.
• Down payment: The down payment is the initial amount contributed upfront when purchasing a property, often expressed as a percentage of the home price. Jumbo mortgage loans typically require a minimum of 10% down.
• Loan term: The loan term is the duration to repay the mortgage, typically 30 or 15 years, though 10 or 20 years are also available. A longer term lowers monthly payments but increases total interest paid. A shorter term reduces interest but raises monthly payments.
• Interest rate: The interest rate is the cost of borrowing, expressed as a percentage of the loan amount.
• Annual property tax: Annual property tax is levied by local governments on land and buildings. It is typically a percentage of the property’s assessed value.
How to Use the New Mexico Jumbo Loan Calculator
Here’s how to use the New Mexico jumbo loan calculator effectively:
Step 1: Enter Your Home Price
Enter the home price listed on your contract.
Step 2: Enter Your Down Payment Amount
Specify how much you will pay for a down payment. A jumbo loan requires at least 10% of the home price upfront.
Step 3: Select a Loan Term
Choose a loan term between 10 and 30 years.
Step 4: Enter Your Interest Rate
Input your hoped-for interest rate to the second or third decimal point.
Step 5: Enter Your Property Tax Rate
Enter your annual property tax rate as a percentage. New Mexico’s average effective rate is 0.74%. The state has some of the lowest property taxes in the U.S.
What Are Jumbo Loans and Conforming Loan Limits?
What is a jumbo loan? In short, it’s a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Throughout New Mexico in 2025, the conforming loan limit for a single-family home is $806,500. For loan amounts above this, a jumbo loan is necessary.
When comparing jumbo loans vs. conventional loans, jumbo loans often have stricter qualification criteria. Borrowers generally need a higher credit score (700+) and significant cash reserves to qualify. Lenders also typically require a down payment of 10%, though some look for 20%. Fortunately, private mortgage insurance is typically not required for down payments less than 20%.
Using a jumbo loan calculator offers several benefits. It helps you budget by providing a clear estimate of monthly payments, including principal, interest, and property tax. This tool also shows how changes in interest rates can affect your payments, allowing you to plan for different scenarios. Additionally, you can compare offers from multiple lenders to find the best terms. Especially if you’re a first-time homebuyer, online calculators are invaluable for making informed decisions about jumbo mortgages.
How to Use the Jumbo Loan Calculator to Compare Scenarios
Comparing different loan scenarios can help you determine a comfortable budget that balances down payment, monthly payments, and the overall cost of the loan.
• Adjust the home price to see how it affects affordability. Remember that you may qualify for a higher loan amount than you can comfortably afford.
• Consider a larger down payment to reduce your overall interest costs.
• Explore shorter loan terms to save on interest, although that will mean higher monthly payments.
• Test different interest rates to explore the implications of an adjustable-rate loan..
• Use the calculator to assess the impact of small rate changes on jumbo loans.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Deciding How Much House You Can Afford in New Mexico
There are different ways to determine what you can comfortably afford. One rule of thumb suggests that housing costs do not exceed 28% of your gross monthly income. Let’s say you’re looking at a $1 million home in New Mexico. Given a 10% down payment ($100,000) on a 30-year mortgage at 6.75% interest, your monthly payment would be approximately $5,837, excluding taxes and insurance. This payment would require an annual income of around $250,000, assuming you have minimal debt.
If your debts exceed about $1,600 a month — think about student loans, credit cards, and car payments — the income needed for a $900,000 mortgage would be higher. That’s because lenders recommend keeping your debt payments within 36% of your gross monthly income.
Of course, your down payment and interest rate can significantly impact affordability. The lower your interest rate, the more home you can afford. The same goes if you can offer a larger down payment; a 20% down payment would bring the monthly mortgage bill down to $5,189.
Going through the mortgage preapproval process can help you gauge affordability — though only you can say what a comfortable budget is, based on your assets, lifestyle, and financial goals.
Across different types of mortgage loans, the core elements of any mortgage payment remain the same: the principal and interest. Our jumbo loan calculator also factors in annual property tax, which may be included in your monthly payment. Other financial obligations that may be rolled into your mortgage bill are homeowners insurance and homeowners association (HOA) dues. Understanding these components helps you get a more accurate picture of your total commitment, ensuring you are well-prepared for the financial responsibilities of homeownership.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Cost of Living in New Mexico
The cost of living in your area will significantly affect how much you can afford to spend on a home. Higher cost of living areas typically have higher average home prices, but they also come with increased costs for utilities, home maintenance, transportation, and other necessities. While you might think you can handle a higher mortgage payment, other expenses can also contribute to financial strain.
Fortunately, the cost of living index in New Mexico is 93.7, or about 6% lower than the national average. Housing costs are almost 12% lower than the national average, and utilities are 16.5% lower. This is great news for homebuyers who may already be stretching themselves to meet a jumbo mortgage payment each month.
Tips on Reducing Your Jumbo Loan Payment
If you’re looking to shave down your monthly payment, here are some common tactics homebuyers employ:
• Shop around for less expensive homeowners insurance, opt for a higher deductible, or combine policies to secure a discount.
• Consider an adjustable-rate mortgage (ARM) for a lower initial interest rate.
• Extend the term of your loan to reduce monthly payments, though this increases the total interest you’ll pay.
• If you face financial hardship in the future, talk to your lender about a loan modification.
When considering a jumbo mortgage loan, it’s important to use a jumbo loan calculator to estimate your monthly payments and total costs. This tool can really help you understand the financial implications of different down payment amounts, various interest rates, and loan term options. By exploring these tools, you can make more informed decisions and find the best mortgage for your needs and circumstances.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
In New Mexico, a jumbo loan is defined as a mortgage exceeding the conforming loan limits set by the Federal Housing Finance Agency. For 2025, the limit for a single-family home is $806,500. Any mortgage over that amount requires a jumbo loan.
How much is a $900,000 mortgage payment for 30 years?
Assuming a 7.00% interest rate, the estimated monthly payment would be approximately $5,988, including principal and interest, but not property taxes and insurance. A jumbo loan calculator can help you gauge affordability for your own loan terms.
Is $900,000 a jumbo loan?
Yes, a $900,000 mortgage is generally considered a jumbo loan in most areas of the U.S. The conforming loan limit for a single-family home in 2025 is $806,500. In high-cost areas, however, this limit can be higher — up to $1,209,750 for a single unit.
Do you need 20% for a jumbo loan?
While some lenders look for a 20% down payment for a jumbo loan, it is not always required. Some lenders accept a down payment as low as 10%.
What are the benefits of a jumbo loan?
Jumbo loans offer higher loan limits, making them suitable for high-value properties in competitive markets. They can provide competitive interest rates and flexible underwriting options. And self-employed individuals benefit from alternative documentation methods.
How much are closing costs on a jumbo loan?
Closing costs for a jumbo loan typically range from 2% to 5% of the home’s purchase price. For a $900,000 home, closing costs could be between $18,000 and $45,000. That covers the cost of appraisals, title searches, loan origination fees, attorney fees, and more. Your lender will provide you with an itemized list before your closing.
What credit score is needed for a jumbo loan?
A credit score of 700 or above is generally required for a jumbo loan (620 for a conventional conforming mortgage), though some lenders look for 720. Jumbo loans have stricter criteria, including a low debt-to-income ratio and significant cash reserves. To improve your credit score and increase your chances of approval, try to pay down any debts, especially credit card debt and higher-interest loans.
How to get the best rate on a jumbo loan?
To secure the best rate on a jumbo loan, shop around and compare offers from multiple lenders. Improve your credit score, maintain a low debt-to-income ratio, and provide significant cash reserves.
What is the jumbo loan limit?
The jumbo loan limit — technically called the conforming loan limit — is the threshold that determines when a mortgage exceeds the limits set by the Federal Housing Finance Agency (FHFA). In most areas, the limit for a single-family home is $806,500. In high-cost areas, it can be as high as $1,209,750. If you need a loan amount above these limits, you will require a jumbo loan.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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