Compare different loan terms using your home price of $350,000 with $70,000 down at 6.8%.
15-Year Fixed
$2,401/mo
Total interest: $152,141
Total cost: $432,141
Save $221,646 vs 30-year
20-Year Fixed
$2,088/mo
Total interest: $221,025
Total cost: $501,025
Save $152,762 vs 30-year
30-Year Fixed (Current)
$1,816/mo
Total interest: $373,787
Total cost: $653,787
Lowest monthly payment
Pro
Professional Simulator
Complete financial model: closing costs breakdown, rent vs buy, inflation-adjusted returns, true cost of ownership
years
%
%
%
%
10-Year Net Gain/Loss
-$173,685
After selling in year 10 at $493,710
Total Paid Over Hold Period
$398,929
Down + closing + all payments
Home Value at Sale
$493,710
3.5%/ yr appreciation
Selling Costs
$29,623
6% of sale price
Net Sale Proceeds
$225,244
After mortgage payoff + selling costs
Real Interest Rate
4.25%
Nominal 6.8% - inflation 2.5%
Real Monthly Payment
$1,254
Today's dollars (mid-loan)
State Property Tax
$5,600
TX rate: 1.6%
True Monthly Cost
$2,499
PITI + HOA + maintenance
Buying a Home in New Jersey
New Jersey has the highest property taxes in the nation — a fact that must be front and center in any homebuying budget. With an average effective rate of 2.21% on a $430,000 average home price, property taxes add nearly $800 per month to the cost of homeownership before a single mortgage payment is considered. This is a defining feature of the New Jersey market, and buyers who come from other states are often surprised by how significantly property taxes affect monthly carrying costs.
Despite this, New Jersey remains one of the most desirable states in the country due to its proximity to New York City and Philadelphia, excellent school systems in many communities, strong median incomes, and diverse suburban and urban living options. North Jersey towns like Montclair, Westfield, and Summit attract buyers who work in Manhattan and want suburban quality of life. Central Jersey communities including Princeton, Westfield, and Maplewood offer academic and cultural amenities. South Jersey towns near Philadelphia — Cherry Hill, Haddonfield, Moorestown — serve as bedroom communities for Center City workers.
New Jersey's Homestead Benefit Program provides targeted property tax relief for seniors and moderate-income homeowners. The NJHMFA's $10,000 forgivable down payment loan is a strong first-time buyer incentive. Buyers should carefully research the property tax rates of specific municipalities, as variation across towns can be extreme — comparing towns when budgeting is essential.
Key Housing Facts for New Jersey
Average home price: $430,000
Average effective property tax rate: 2.21% (highest in the US)
Average homeowners insurance: $1,300/year
Research specific town property tax rates — variation is significant
Most desirable markets: Montclair, Summit, Westfield, Princeton
More affordable markets: Trenton, Camden, Vineland, Atlantic City area
Frequently Asked Questions
New Jersey has the highest average effective property tax rate in the nation at approximately 2.21%. On a $430,000 home, you'd pay roughly $9,503 per year in property taxes — nearly $800 per month just in property taxes. Rates vary significantly by municipality, with Essex and Bergen counties among the highest and some South Jersey communities somewhat lower.
New Jersey Housing and Mortgage Finance Agency (NJHMFA) offers the First-Time Homebuyer Mortgage Program with competitive rates and the Down Payment Assistance (DPA) program providing $10,000 as a forgivable five-year second mortgage. The Police and Firemen's Retirement System program offers special terms for public safety employees. Income and purchase price limits apply by county.
New Jersey's Homestead Benefit Program provides property tax relief credits directly to eligible homeowners — including seniors, disabled persons, and lower and moderate-income residents who meet certain criteria. The credit is applied as a reduction in the property tax bill. Income limits and application deadlines apply. Contact the New Jersey Division of Taxation or your tax preparer for current eligibility details.
Closing costs in New Jersey can be among the highest in the country due to the state's mansion tax, realty transfer fee, and mortgage recording requirements. The realty transfer fee is paid by the seller but can affect negotiations. Buyers should budget 2–4% of the purchase price. On a $430,000 home, buyer closing costs might range from $8,600–$17,200, including lender fees, title insurance, and prepaid items.