Mortgage Affordability Calculator for New Jersey

Buying a Home in New Jersey: What You Can Afford

The median home value in New Jersey is $480,000. New Jersey benefited from NYC out-migration during COVID, pushing suburban prices sharply higher. Bergen, Morris, Monmouth, and Somerset counties carry the highest values and highest tax bills in the state.

Conforming Loan Limits in New Jersey

The conforming loan limit in New Jersey is $1,089,300. All New Jersey counties qualify for high-cost conforming limits, ranging from $952,750 to $1,089,300 depending on the county. Loans above this threshold are considered jumbo loans and typically carry stricter qualification requirements and slightly higher rates.

Property Taxes to Budget For

Beyond your mortgage payment, budget for New Jersey's property taxes: the effective rate is 2.13%, meaning a home at the median value generates about $9,476/year in taxes. This is a real cost that lenders include in your debt-to-income (DTI) calculation.

Closing Costs in New Jersey

Buyers typically pay around $7,200 in closing costs in New Jersey. New Jersey has a Realty Transfer Fee (RTF) of up to 1.21% of sale price on the seller side. Buyers also pay a Mansion Tax of 1% on residential purchases above $1M. Combined, closing costs are among the highest in the nation. Factor this into your upfront cash requirement alongside your down payment.

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