New Jersey Mortgage Calculator
Calculate your New Jersey mortgage payment with PMI, property tax, and closing costs.
Useful for home buyers in Newark, Jersey City, Paterson, Elizabeth, Trenton, and all of New Jersey.
Useful for home buyers in Newark, Jersey City, Paterson, Elizabeth, Trenton, and all of New Jersey.
Why use a New Jersey Mortgage Calculator?
New Jersey has the highest property tax rates in the US at 2.49%. This calculator estimates your payment, PMI, property tax, and closing costs.
New Jersey has the highest property tax rates in the US at 2.49%. This calculator estimates your payment, PMI, property tax, and closing costs.
Result
Enter your details to see the estimated payment here.
Related Calculators
New Jersey Property Tax: The average effective property tax rate is about 2.49%, the highest in the nation. New Jersey also has a Realty Transfer Fee that ranges from 0.4% to 1% depending on the purchase price.
Average Home Prices in Major New Jersey Cities (2024)
| City | Detached | Semi-Detached | Townhouse | Condo |
|---|---|---|---|---|
| Newark | $450,000 | $380,000 | $350,000 | $300,000 |
| Jersey City | $750,000 | $650,000 | $600,000 | $550,000 |
| Paterson | $400,000 | $350,000 | $320,000 | $290,000 |
| Elizabeth | $420,000 | $370,000 | $340,000 | $300,000 |
| Trenton | $350,000 | $300,000 | $280,000 | $240,000 |
Note: Prices are approximate averages for 2024 and may vary by neighborhood and property features.
How Mortgage Rules Work in New Jersey
- Property Tax: New Jersey has the highest property tax rate in the US at an average of 2.49%. Property taxes are paid quarterly and may be included in your monthly payment.
- Realty Transfer Fee: New Jersey charges a transfer fee that varies by purchase price:
- 0.4% for properties under $150,000
- 0.6% for $150,000 to $200,000
- 0.78% for $200,001 to $1 million
- 1% for properties over $1 million
- PMI (Private Mortgage Insurance): If your down payment is less than 20%, you must pay PMI, which is added to your monthly payment until you reach 20% equity.
- Closing Costs: New Jersey's closing costs include title insurance, attorney fees, and other expenses, typically 2-5% of the purchase price.
Example: On a $550,000 home with 10% down in Jersey City, you pay PMI and property tax. Annual property tax would be approximately $13,695, and the Realty Transfer Fee around $4,290.
Frequently Asked Questions
New Jersey has the highest property tax rate in the nation (averaging 2.49%) due to several factors. The state relies heavily on property taxes to fund local services including public schools, which are among the highest-rated in the country. Additionally, New Jersey has a high number of municipal governments (565 municipalities), each with their own administration and services to fund. The state's high population density, infrastructure demands, and public employee pension obligations also contribute to the high tax rates.
New Jersey's Realty Transfer Fee (RTF) is a graduated tax on real estate transactions paid by the seller. The basic rate structure is:
- 0.4% for properties under $150,000
- 0.6% for $150,000 to $200,000
- 0.78% for $200,001 to $1 million
- 1% for properties over $1 million (additional 1% "mansion tax")
Yes, New Jersey offers several property tax relief programs:
- Homestead Benefit Program: Provides property tax credits or rebates to eligible homeowners.
- Senior Freeze (Property Tax Reimbursement): Reimburses eligible seniors and disabled persons for property tax increases.
- Veterans Property Tax Deductions: $250 annual deduction for qualifying veterans or their surviving spouses.
- Property Tax Deduction/Credit: Homeowners and tenants can claim either a deduction or credit on their NJ income tax returns.