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Don’t Be Blindsided by Closing Costs!


Make Sure You Are Aware of All the Costs and Fees That Go Into Buying a Home

When buying a home, it can be tough to look past the daunting down payment ahead of you. The last thing you need is to be blindsided by a cost or fee of which you aren’t aware. In New Mexico, it is a good rule of thumb to expect to pay at least 2% to 3% of the home’s sale price in closing costs. To estimate your closing costs, take the home’s projected sale price and multiply it by 3% (or 0.03). For example, a $500,000 sale price x 0.03 = $15,000 in closing costs, not including your down payment. The table below shows the average and expected closing cost ranges for houses in New Mexico priced between $200,000 and $300,000.

Cost Value
Average Home Sale Price $238,227 to $338,227
Average Total Closing Cost $7,205.68
Expected Closing Cost Range $4,764.54 to $10,146.81
Percentage of Closing Cost to Sale Price 2% to 3%







You may be able to negotiate for the seller to take on some of the closing costs that the buyer usually pays. However, it is good to understand what fees and costs you will more than likely be expected to pay. These costs and fees can start to add up, but you can look at them as part of the investment and protection of your soon-to-be new home. And remember, living in New Mexico means no transfer tax when transferring the home’s title. The table below shows who usually pays what for closing costs in New Mexico.1

Cost or Fee Who Pays
Title Search and Insurance Buyer
Loan Application Fee Buyer
Loan Origination Fee Buyer
Points Buyer
Home Inspections Buyer
Appraisal Buyer
Survey Buyer
Building or HOA Fees Buyer
Taxes/Insurance in Advance Buyer
Recording Fees Buyer or Seller
Settlement Fee Buyer or Seller
Existing Liens Seller
Real Estate Brokerage Commissions Seller
Mortgage Payoff Penalty Seller














PMI is a monthly cost that can be avoided if you are able to make a down payment of at least 20%. Unfortunately, this is not always an option. Lenders will charge PMI if there is not a sufficient down payment to protect the financial institution in the event of default on the loan. PMI is calculated by looking at your downpayment, interest rate, and credit score. Fortunately, SLFCU does not require PMI which in return can save you hundreds of dollars every month


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