Worked example: Closing Cost in New Mexico

7 min read

Published April 15, 2026 • By DocketMath Team

This article is for informational purposes only and does not constitute legal advice. Laws change frequently — verify all citations with current official sources.

Example inputs

Run this scenario in DocketMath using the Closing Cost calculator.

This worked example shows how DocketMath calculates a closing cost figure for New Mexico (US-NM) using a jurisdiction-aware ruleset. The key point for this jurisdiction is the statute-of-limitations (SOL) baseline used in many time-based calculations: New Mexico’s general SOL period is 2 years under N.M. Stat. Ann. § 31-1-8.

Note: No claim-type-specific sub-rule was found for this template. That means the calculation uses the general/default 2-year period from N.M. Stat. Ann. § 31-1-8 rather than a specialized SOL for a particular claim category.

Below are the example inputs we’ll use in DocketMath’s closing-cost calculator. You can mirror these values with your own scenario or adjust them and rerun. For the calculator interface, use: /tools/closing-cost.

Scenario

Assume a consumer-side dispute where the relevant timeline begins on the date an event occurred (often the “accrual” date in practice). In this example, we treat the closing-cost calculation as depending on how long the relevant timeline runs within the New Mexico general SOL framework.

Inputs to enter in DocketMath (closing-cost)

Input	Example value	Why this matters
Jurisdiction	US-NM	Activates New Mexico rules, including the 2-year general SOL
Start date (event/accrual date)	2024-03-01	Determines when the clock starts
End date (filing/closing or measurement date)	2025-02-15	Determines how much time is counted before “closing” (or measurement)
Base closing cost amount	$850	Starting dollar figure before time-based adjustments
Adjustment rate (time factor)	1.25% per month	Used to scale the cost based on time elapsed
Cap (maximum multiplier)	1.50x	Prevents the multiplier from rising above a ceiling

Jurisdiction rule used in this example

General SOL period: 2 years
Statute: N.M. Stat. Ann. § 31-1-8

Because no claim-type-specific sub-rule was found for this template, this example applies only the general/default SOL.

Gentle reminder: This is a worked example using the calculator’s logic and jurisdiction data provided for the template. It’s not legal advice and doesn’t account for all real-world timing issues that may arise in an actual case.

Example run

Now let’s run the numbers step-by-step using DocketMath’s closing-cost logic for US-NM.

Run the Closing Cost calculator using the example inputs above. Review the breakdown for intermediate steps (segments, adjustments, or rate changes) so you can see how each input moves the output. Save the result for reference and compare it to your actual scenario.

Step 1: Compute the time span between dates

Start date: 2024-03-01
End date: 2025-02-15

Time span is approximately 11.5 months.

DocketMath’s calculator rounds time according to its internal method for the closing-cost template. For this worked example, we’ll assume it treats that span as 11 months for month-based adjustments (because the end date is mid-month). If your measurement date shifts, your rounded month count—and therefore the final number—can change.

Step 2: Apply the New Mexico SOL framework (general/default)

Under N.M. Stat. Ann. § 31-1-8, the general SOL is 2 years (24 months).

Compare elapsed time (~11–12 months) to the SOL window (24 months):

Elapsed time: ~11.5 months
SOL window: 24 months

Because elapsed time is within the general SOL period, the model applies the “within-SOL” scaling behavior (as long as your DocketMath template configuration includes a separate “beyond-SOL” branch).

Step 3: Convert elapsed time into a multiplier

Using the example inputs:

Adjustment rate: 1.25% per month (0.0125)
Months counted: 11

Multiplier from time factor =
1 + (0.0125 × 11)
= 1 + 0.1375
= 1.1375x

Step 4: Enforce the cap

Cap: 1.50x
Calculated multiplier: 1.1375x

Since 1.1375x < 1.50x, the cap does not bind in this run.

Step 5: Compute the closing cost

Base closing cost: $850
Multiplier: 1.1375x

Closing cost = $850 × 1.1375
= $967.88 (rounded to cents)

✅ Example output (closing cost): $967.88

Sensitivity check

A practical way to sanity-check a time-based closing-cost estimate is to change one input at a time and observe how the output moves. Here, the biggest levers are (1) how long the dates run relative to the 2-year general SOL and (2) the adjustment rate and cap.

Reminder: This example uses the general/default 2-year SOL from N.M. Stat. Ann. § 31-1-8 because no claim-type-specific sub-rule was identified for this template.

What to test (quick checklist)

Move the end date forward/back by 1–3 months
Move the start date forward/back by 1–3 months
Increase/decrease the adjustment rate
Lower/raise the cap to see when it starts limiting results

Sensitivity scenarios (change end date only; same start date)

Keep everything the same except End date.

End date	Approx months elapsed	Time multiplier (1 + 0.0125×months)	Cap applies?	Estimated closing cost
2025-01-15	~10.5 months → 10 months	1.1250x	No	$956.25
2025-02-15 (base)	~11.5 months → 11 months	1.1375x	No	$967.88
2025-03-15	~12.5 months → 12 months	1.1500x	No	$977.50
2026-02-28	~24 months → 24 months	1.3000x	No	$1,105.00

All of these examples remain within 24 months, so none of them should trigger a “beyond-SOL” behavior (if your DocketMath mode distinguishes within-SOL vs beyond-SOL).

When crossing the 2-year mark matters

If you extend the timeline so the elapsed time goes past 24 months, the model may switch behavior depending on how the DocketMath closing-cost template handles “beyond-SOL” logic.

Conceptual boundary under the general rule:

Start: 2024-03-01
General SOL window ends: 2026-03-01 (24 months)

Illustrative measurement points:

2026-02-28 → still within the window
2026-03-02 → beyond the general 2-year window under N.M. Stat. Ann. § 31-1-8

That boundary can materially change the result if the calculator applies different rules after the SOL window.

Sensitivity on the adjustment rate (holding dates constant)

Keep the dates fixed (11 months assumed from the rounding step), and change Adjustment rate:

Base: 1.25% per month
Multiplier = 1 + (0.0125×11) = 1.1375x → $967.88
If rate increases to 1.50% per month
Multiplier = 1 + (0.015×11) = 1.165x → $850×1.165 = $990.25
If rate decreases to 1.00% per month
Multiplier = 1 + (0.01×11) = 1.11x → $850×1.11 = $943.50

Directionally:

Higher adjustment rate → higher closing cost
Lower adjustment rate → lower closing cost
(Because the time-based multiplier scales directly with the rate.)

Sensitivity on the cap

The cap only affects results once the calculated multiplier would exceed it.

With the example adjustment rate (1.25%/month):

Solve for months when multiplier reaches 1.50x:
1 + 0.0125×months = 1.50
0.0125×months = 0.50
months = 40

So, unless the model measures a much longer time window (beyond typical within-SOL windows), the cap may not bind. Still, if your inputs measure a period that pushes the multiplier high enough, the cap will cap the final output.