Buying a Home in New Jersey: What You Need to Know
If you're considering buying a home in New Jersey, understanding the true cost of homeownership is essential. Beyond your mortgage payment, New Jersey homeowners face property taxes, insurance costs, and closing fees that vary significantly from the national average. This calculator uses New Jersey-specific data to give you accurate monthly payment estimates.
New Jersey Property Taxes
New Jersey has an effective property tax rate of 1.77%, ranking #2 out of 50 states (where #1 is the highest). On a median-priced home of $521,000, you'd pay approximately $9,222 per year in property taxes, or about $769/month.
New Jersey is among the states with the highest property taxes in the nation. This is often because property taxes fund local schools and services. Be sure to factor this into your budget when determining how much home you can afford.
New Jersey Homeowners Insurance
The average annual homeowners insurance premium in New Jersey is $1,214 for $300,000 in dwelling coverage, or about $101/month.
New Jersey enjoys relatively low insurance costs compared to many other states. This is often due to lower risk of major natural disasters. However, rates vary by location, so get quotes for your specific property.
New Jersey Closing Costs
Closing costs in New Jersey average 0.92% of the home's purchase price. On a $521,000 home, that's approximately $4,793. Closing costs typically include:
- Loan origination fees
- Appraisal and inspection fees
- Title insurance and search
- Recording fees
- Prepaid property taxes and insurance
New Jersey Housing Market
The median home price in New Jersey is $521,000. This is significantly above the national median of approximately $410,000, making New Jersey one of the more expensive states for homebuyers. However, strong job markets and quality of life often justify the premium.
More New Jersey Mortgage Tools
Use these additional calculators to plan your New Jersey home purchase: