New Jersey Mortgage Calculator

Mortgage Calculator in New Jersey

The median home price in New Jersey is $500,000, which is 19% above the national average of $420,000. New Jersey's effective property tax rate of 2.23% is 1.13 percentage points higher than the national average of 1.1%.

Metric	New Jersey (NJ)	National Avg	vs National Average
Median Home Price	$500,000	$420,000	+19%
Property Tax Rate	2.23%	1.1%	+1.13%
Home Insurance (Annual)	$1,800	$2,300	-22%
State Sales Tax	6.625%	5%	+1.6%
FHA Loan Limit	$766,550	$472,030	Higher
Conforming Loan Limit	$766,550	$766,550	Standard

Homeownership in New Jersey

New Jersey has the highest effective property tax rate in the nation at 2.23%, and with a median home price of $500,000, the average homeowner pays well over $10,000 per year in property taxes. The state's location between New York City and Philadelphia makes it a perennial housing destination for commuters, and its strong school systems support high property values -- but also high tax rates. Despite the costs, New Jersey has strong homeowner protections including the ANCHOR property tax relief program.

Tips for New Jersey Homebuyers and Homeowners

• New Jersey's ANCHOR (Affordable NJ Communities for Homeowners and Renters) program provides property tax relief of $1,500 for homeowners with income below $150,000 and $1,000 for those with income $150,000-$250,000.
• Property tax bills in New Jersey vary enormously by municipality -- a $500,000 home in a high-spending school district can generate $15,000+ per year, while a similar home in a lower-cost town might be $8,000.
• New Jersey has a mansion tax of 1% on purchases above $1 million, borne by the buyer -- budget for this on higher-end purchases.
• The exit tax when selling New Jersey property requires sellers to prepay 2% of total proceeds (not profit) at closing if they are a non-resident -- plan for this liquidity requirement.

New Jersey Programs and Assistance

• New Jersey Housing and Mortgage Finance Agency (NJHMFA) First-Time Homebuyer Mortgage Program -- competitive 30-year fixed rates for first-time buyers, with income and purchase price limits.
• NJHMFA Down Payment Assistance (DPA) -- provides $10,000 in 0% interest forgivable loans for first-time buyers using NJHMFA financing, forgiven after 5 years.
• NJHMFA Police and Firemen's Retirement System (PFRS) Mortgage Program -- specialized financing at below-market rates exclusively for New Jersey police officers and firefighters.

Did you know? New Jersey has the highest property tax burden in the United States -- the average New Jersey homeowner pays more in property taxes per year ($9,100 on average) than most Americans pay in total combined taxes.