Closing costs in New Mexico: what buyers and sellers pay

Why there is no single “typical” total

Some New Mexico closing costs are fixed by a government body. The Office of Superintendent of Insurance (OSI) sets title insurance premiums, and each county clerk sets recording fees. Others are set by private companies and vary: lender charges, escrow and settlement fees, inspections, surveys and brokerage compensation. Prorated property taxes and insurance deposits depend on the house, the closing date and the loan.

Your total therefore depends mostly on your loan, your contract and your closing date. The variable pieces appear on two federal forms. The lender must give you a Loan Estimate “within three business days of receiving your application,” and every lender must use the same standard form. You must receive the Closing Disclosure at least three business days before closing (Consumer Financial Protection Bureau). For a general walk-through of each line, see closing costs explained.

Line by line: what each cost is

Lender charges. Origination, appraisal, credit report and underwriting fees are set by the lender and the companies it hires. No New Mexico price table applies to them. Compare them on the Loan Estimate.

Title insurance. The Superintendent sets premiums in a title rate case, and a title agent may not grant a discount or rebate that the rules do not authorize (13.14.9.8 and 13.14.9.12 NMAC). Examples from OSI’s table:

• Lender’s policy issued with the owner’s policy: $100 for coverage up to the owner’s policy amount.
• Commitment: $100 for the first six months.
• Owner’s policy: a bracket schedule that I could not retrieve from OSI.

Details are in our New Mexico title insurance guide.

Recording fees. The county clerk records the deed and the mortgage. In Bernalillo County, the Clerk charges $25 per document for up to 10 entries, and another $25 for each additional group of 10 or fewer.

Transfer tax. None that I found. Our transfer tax page explains what the sources show, including the 2022 proposal that died.

Escrow and settlement fees. The sources I read set no fee for these services. They depend on the company you use and on your purchase agreement. Ask for them in writing before closing.

Property tax. New Mexico bills property tax in two halves, due November 10 and April 10 (Property Tax Code § 7-38-38). Your lender may collect part of it at closing. See property tax in New Mexico for rates and the exemptions you can claim after you buy, and our escrow account guide.

Assessor affidavit. After you record a residential deed, an affidavit about the price must be filed with the county assessor within 30 days (§ 7-38-12.1). The statute describes it as a filing for statistics and appraisal, and mentions no fee.

What the seller pays

Brokerage compensation. Under 3.2.226.9 NMAC, a broker’s commission on a home sale is fully subject to New Mexico gross receipts tax. The homeowner’s own receipts from selling their home are exempt as an isolated or occasional sale. Compensation is negotiated, not set by law. See real estate commission.

Payoff and prorations. The seller’s mortgage payoff and their share of property taxes depend on the loan balance and the contract. No state schedule sets them.

Worked example: a $400,000 purchase in Albuquerque

This is an illustration only, for a buyer who borrows $320,000. It lists only the lines the sources let me price.

The fixed lines are small. Most of your cash at closing will be the down payment, lender fees and the owner’s premium. Albuquerque’s tax picture is on our Albuquerque page.