New Jersey mortgage calculator

While New Jersey definitely has its share of affordable housing outside the major city centers, the largest metropolitan areas in the state are expensive to live in. As an example, the median home price in the Atlantic City-Hammonton region of the state came in at $317,500 in late 2023. In the meantime, living in Trenton costs around $409,400, and homes in the New York-Newark-Jersey City, NY-NJ-PA metropolitan area come with a median price point of $629,000.

When you consider that the median home price came in at $394,300 nationally in September of 2023 according to the National Association of Realtors, it's easy to see how you could pay more or less than average for a home in the state. Unfortunately, living expenses in New Jersey can be expensive regardless due to the state's high property taxes.

With that in mind, you'll want to consider all the factors that can go into your monthly mortgage payment in New Jersey, including the loan amount itself, property taxes, homeowners insurance, private mortgage insurance (PMI) premiums, mortgage rates and more. The calculator below can help you estimate the mortgage payment on a New Jersey home considering your loan amount, interest rate and other details.

What factors affect your mortgage payment in New Jersey

Several factors will dictate how much you'll pay each month for a home in New Jersey, and many of them are within your control. As you prepare to buy a home in the state, these factors will make the biggest impact on your long-term costs.

• Down payment: How much you can put down when you purchase a home will determine how much you need to borrow. The more you can save up for a down payment on a home, the lower your monthly mortgage payment will be.
• Homeowners insurance: Homeowners insurance premiums are typically paid from an escrow account tied to your mortgage, which means the annual cost of a policy is paid for through your housing payment.
• HOA dues: If you live in a neighborhood with a homeowners association, it's possible you'll also pay HOA dues within your mortgage payment each month.
• Loan amount: The higher the loan amount for the home you want to buy, the larger your loan payment will be.
• Mortgage type: The type of home loan and the loan term you select will also impact your payment. For example, a 30-year, fixed-rate mortgage will have a lower monthly payment than a 15-year, fixed-rate loan.
• New Jersey mortgage rates: Today's mortgage rates will also determine how much you pay in interest each month and over the duration of the loan, both of which are covered with your loan payment.
• Property taxes: New Jersey property taxes are the highest in the nation, so the monthly amount you pay will definitely impact your housing payment each month.
• Private mortgage insurance (PMI): If your home down payment is less than 20% on a conventional home loan, your monthly mortgage payment will also include private mortgage insurance (PMI) until you have sufficient home equity for this added cost to be removed.

Typical closing costs in New Jersey

According to CoreLogic’s ClosingCorp Reports from 2022, average closing costs for homes in New Jersey worked out to approximately 1.7% of the sales price at last count. This percentage represents average closing costs in the state of $4,158 without taxes and $7,915 with taxes included.

This puts the state somewhere in the middle of the pack when it comes to which states have the highest and lowest closing costs nationwide. For example, states with the highest average closing costs included Delaware ($17,859), New York ($16,849), Maryland ($14,721), Washington ($13,927) and the District of Columbia ($29,888). Meanwhile, states with the lowest average costs included Missouri ($2,061), Indiana ($2,200), North Dakota ($2,501), Wyoming ($2,589) and Mississippi ($2,756).

Median property taxes by county

In 2023, average property taxes in New Jersey cost homeowners $6,579 per year on a home worth the median value of $348,300, or 1.89%. This makes New Jersey property taxes the highest among all 50 states based on the actual dollar figure of property taxes, the percentage of household income and as a percentage of property values.

That said, some New Jersey counties have higher property taxes overall in terms of dollar value and as a percentage of home values. There are also more affordable counties to live in across the state in terms of property taxes, as you can see in the chart below.

Biggest mortgage lenders in New Jersey

The best mortgage lenders in New Jersey offer a range of mortgage options that could help you get a mortgage payment you can afford, such as:

• 15-year fixed-rate home loans.
• 30-year fixed-rate home loans.
• 7-year ARMs.
• 5-year ARMs.
• FHA loans.
• VA loans.
• USDA loans.

To find the right mortgage company, you'll want to consider the application process, available loan types, closing costs and current mortgage rates. You can reach out to these companies over the phone or online to ask questions and get a feel for mortgage costs, but you can also work with a local mortgage broker who can help you compare mortgage rates and fees across several different companies with a single application. Here’s what makes the following lenders stand out in New Jersey:

• ‌Rocket Mortgage. Best for Very low-down payment conventional mortgages
• AmeriSave. Best for: Online experience
• Chase. Best for: Credit toward closing costs
• PenFed Credit Union. Best for: Low rates
• Wells Fargo. Best for: Big bank shoppers

Rocket Mortgage

‌Rocket Mortgage, the nation’s large mortgage lender, was the No. 1 lender in New Jersey in 2021. It’s easy to apply and qualify for most mortgages through Rocket Mortgage, including conventional, FHA, VA and even jumbo loans. Checking prequalification and applying for a loan are a snap due to the easy app and site experience. Rocket Mortgage doesn’t currently offer USDA loans or home equity lines of credit (HELOCs).

AmeriSave

Online lender AmeriSave has been originating mortgages for more than two decades. You can apply for conventional, FHA, VA, USDA and other types of mortgages — or you can refinance or get a HELOC with AmeriSave. You can complete most of the application online without going into a branch or lender, and AmeriSave offers prequalification to determine eligibility without first completing a full application.

Chase

If you’re a current Chase customer, you might qualify for a relationship discount for fewer fees or a lower APR, depending on the accounts you hold. Chase also offers the DreaMaker program for low-income earners who don’t have the best credit and want to buy a home. After completing a home buying education course, borrowers can receive up to $2,500 or $5,000 to help with home buying costs.

PenFed Credit Union

PenFed offers 0% APR for VA loan borrowers (which is standard for VA loan recipients), but current credit union members also have access to some nice incentives — such as a lender credit up to $2,500 when you close on your home, and you won’t pay lender fees. These incentives are only for credit union members, but everyone is eligible for membership.

Wells Fargo

One of the leading banking institutions in the world, Wells Fargo was the second-highest lender in New Jersey last year after Rocket Mortgage. If you want to go with a big bank or you’re a current Wells Fargo customer, this might be a good option for you. They don’t publicly disclose their credit requirements, which is good news for borrowers with less-than-stellar credit who want to buy a home.

How to get a lower mortgage payment in New Jersey

If you're spending more than you planned on a home, New Jersey property taxes are higher than you thought, you forgot about all the factors that impact housing payments or all of the above, there are steps you can take to reduce what you owe on a monthly basis. Consider the following moves to get your monthly mortgage payment closer to what you can afford.

Choose a longer loan term

Choosing a longer repayment term can help reduce your mortgage payment by quite a bit. Of course, making a mortgage payment for a longer timeline usually means you pay more mortgage interest over time.

Come up with a down payment of at least 20%

Putting down at least 20% on a conventional home loan will let you avoid paying private mortgage insurance (PMI) each month. In the meantime, a larger down payment also means you'll be borrowing less.

Consider homes in different areas around the state

Property taxes around New Jersey vary widely and can impact your mortgage payment dramatically. Consider living in lower cost areas of the state if you can.

Get quotes from several lenders

Shopping around for a mortgage is the best way to save money on loan costs and find the lowest possible mortgage rates.

Shop around for homeowners insurance

Finally, don't go with the first homeowners insurance company you come across. Take the time to compare homeowners insurance rates with at least three different companies and you can pay less for coverage and lower your monthly housing payment all at once.