Use our free New Jersey mortgage calculator to estimate your monthly payment including principal, interest, property taxes, and homeowner’s insurance. New Jersey has the highest property taxes in the nation – averaging 2.23% – making it critical to factor these costs into your budget before buying.
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Estimate your monthly payment including principal, interest, taxes & insurance
Monthly Payment Breakdown
| Year | Beginning Balance | Principal Paid | Interest Paid | Ending Balance |
|---|
- New Jersey has the highest property taxes in the US at an average effective rate of 2.23%
- Median home price is approximately $520,000 (2024), making monthly payments substantial
- NJ has no mortgage recording tax but does charge a realty transfer fee of 1%-1.4%
- The NJHMFA First-Time Homebuyer program offers down payment assistance up to $15,000
- NJ requires attorney representation at closing – budget $1,500-$3,000 for legal fees
Current Mortgage Rates in New Jersey (2024)
New Jersey mortgage rates generally track national averages. Here are typical rates by loan type:
| Loan Type | Rate Range | Best For |
|---|---|---|
| 30-Year Fixed | 6.5% – 7.2% | Most buyers, lower monthly payments |
| 15-Year Fixed | 5.9% – 6.5% | Faster payoff, lower total interest |
| FHA Loan | 6.2% – 6.8% | First-time buyers, 3.5% down |
| VA Loan | 5.8% – 6.4% | Veterans, no down payment |
| USDA Loan | 6.0% – 6.6% | Rural NJ areas, no down payment |
| Jumbo Loan | 6.8% – 7.5% | Homes above $766,550 (conforming limit) |
New Jersey Property Taxes by County
Property taxes are the biggest variable in your NJ mortgage payment. Here are effective tax rates for the most populated counties:
| County | Avg Effective Rate | Median Home Value | Avg Annual Tax |
|---|---|---|---|
| Essex County | 2.60% | $450,000 | $11,700 |
| Bergen County | 2.15% | $620,000 | $13,330 |
| Middlesex County | 2.20% | $490,000 | $10,780 |
| Monmouth County | 1.90% | $580,000 | $11,020 |
| Ocean County | 1.70% | $380,000 | $6,460 |
| Hudson County | 1.65% | $530,000 | $8,745 |
| Morris County | 2.05% | $590,000 | $12,095 |
| Union County | 2.55% | $470,000 | $11,985 |
| Camden County | 3.10% | $280,000 | $8,680 |
| Burlington County | 2.30% | $360,000 | $8,280 |
Monthly Payment Examples by City
Based on a 30-year fixed mortgage at 7.0% with 20% down payment, including estimated property taxes and insurance:
| City | Median Price | Down Payment (20%) | Est. Monthly Payment |
|---|---|---|---|
| Jersey City | $650,000 | $130,000 | $4,820 |
| Newark | $380,000 | $76,000 | $3,140 |
| Hoboken | $780,000 | $156,000 | $5,610 |
| Trenton | $210,000 | $42,000 | $2,080 |
| Edison | $520,000 | $104,000 | $3,990 |
| Cherry Hill | $440,000 | $88,000 | $3,520 |
NJHMFA First-Time Homebuyer Programs
The New Jersey Housing and Mortgage Finance Agency (NJHMFA) offers several programs to help buyers:
First-Time Homebuyer Mortgage
Competitive 30-year fixed rate mortgages available to first-time buyers (no home ownership in past 3 years). Income limits apply by county – generally $120,000-$160,000 depending on household size and location. Purchase price limits range from $450,000-$740,000 depending on county.
Down Payment Assistance (DPA)
Up to $15,000 in down payment and closing cost assistance. Available as a 0% interest, 5-year forgivable second mortgage when paired with an NJHMFA first mortgage. If you sell or refinance within 5 years, the remaining balance is due.
Police and Firemen’s Retirement System (PFRS)
Special below-market mortgage rates for active and retired police officers and firefighters who are PFRS members. No income or purchase price limits apply for this program.
New Jersey Closing Costs Breakdown
| Cost Item | Typical Amount | Notes |
|---|---|---|
| Realty Transfer Fee | 1.0% – 1.4% | Paid by seller; buyer pays 1% on homes over $1M |
| Attorney Fee | $1,500 – $3,000 | Required in NJ – both buyer and seller need attorneys |
| Title Insurance | $1,200 – $2,500 | Lender’s policy required; owner’s policy recommended |
| Home Inspection | $400 – $700 | Highly recommended, not legally required |
| Appraisal | $500 – $800 | Required by lender |
| Recording Fees | $100 – $300 | County clerk fees to record the deed and mortgage |
Affordability by Income in New Jersey
| Annual Income | Max Monthly Payment | Approx. Home Price (20% down, 7%) |
|---|---|---|
| $80,000 | $1,867 | ~$240,000 |
| $100,000 | $2,333 | ~$300,000 |
| $130,000 | $3,033 | ~$390,000 |
| $160,000 | $3,733 | ~$480,000 |
| $200,000 | $4,667 | ~$600,000 |
| $250,000 | $5,833 | ~$750,000 |
Frequently Asked Questions
What is the average mortgage payment in New Jersey?
For a median-priced NJ home of $520,000 with 20% down ($104,000), at 7.0% on a 30-year fixed, the principal and interest payment is about $2,763/month. Add average property taxes ($966/month statewide) and insurance ($150/month) and the total PITI payment comes to roughly $3,879/month.
Does New Jersey have a mortgage tax?
No – New Jersey does not have a mortgage recording tax, which saves buyers money compared to states like New York (which charges up to 1.925%). NJ does have a realty transfer fee paid primarily by the seller, and buyers pay an additional 1% on purchases over $1 million.
What credit score do I need for a New Jersey mortgage?
Conventional loans require a minimum 620 credit score, though 740+ gets you the best rates. FHA loans allow scores as low as 580 with 3.5% down, or 500 with 10% down. NJHMFA programs typically require a minimum 620 score.
How much do I need to earn to afford a home in NJ?
To afford the median NJ home of $520,000 with 20% down at 7%, you need an annual income of approximately $135,000-$145,000 using the 28% DTI guideline. With 5% down and FHA, the required income is higher due to mortgage insurance. Many NJ buyers use dual incomes to qualify.