What’s the average mortgage payment in New Jersey?

According to data collected from Redfin and Rocket Mortgage, the average monthly mortgage payment in New Jersey is around $2,312 before property taxes and insurance. New Jersey consistently ranks among the more expensive states for homeownership due to high home prices and some of the highest property taxes in the country.

Strong demand across North and Central New Jersey, combined with limited housing inventory, continues to support elevated prices throughout much of the state.

Overview of the New Jersey housing market

The median sale price of a home in New Jersey is roughly $559,800, according to Redfin’s statewide housing data. Prices vary widely by region, with the highest costs concentrated in counties close to New York City and along the Jersey Shore.

Redfin data shows that New Jersey has seen net positive migration, with many home buyers moving into the state from neighboring New York and other larger metros.

Here’s a snapshot of recent median sale prices from Redfin across several New Jersey cities:

Factors that influence mortgage payments in New Jersey

Your monthly payment includes principal, interest, taxes, and insurance (PITI). Given New Jersey’s high property taxes, taxes play a particularly large role in total housing costs.

Home price and down payment

Higher home prices in New Jersey mean buyers often take on larger loan balances, which directly increases monthly mortgage payments. A home buyer looking to purchase a median New Jersey home with a 20% down payment and 6.5% interest rate can expect monthly payments of about $2,831 before factoring in insurance and taxes.

Buyers who put less than 20% down will also have to pay for private mortgage insurance (PMI).

Mortgage rate

New Jersey mortgage rates depend on several factors, including:

• Credit score and credit history
• Debt-to-income ratio (DTI)
• Loan type
• Down payment amount
• Home type and location
• Current market rates

Loan term

Most home buyers choose a 30-year mortgage to keep monthly payments manageable. A 15-year mortgage offers higher monthly payments but significantly reduces total interest paid over time.

Property taxes and insurance

New Jersey has the highest average property tax rate in the U.S. at approximately 2.23%. Property taxes can add hundreds of dollars per month to housing costs, especially in higher-priced counties.

Homeowners insurance in New Jersey averages about $158 per month, reflecting moderate weather risk compared to hurricane-prone coastal states farther south.

How do mortgage payments in New Jersey compare to others in the region?

Counties with the highest mortgage payments in New Jersey

Mortgage payments are highest in counties with the most expensive home prices and proximity to major employment centers. Here are the most expensive counties based on Q1 2025 median sale prices from the National Association of REALTORS®:

Counties with the lowest mortgage payments in New Jersey

Counties with lower home prices tend to have lower monthly mortgage payments. These counties have the lowest monthly payments in the state:

How to calculate your mortgage payment

Mortgage payments are calculated using a standard formula that factors in the loan amount, interest rate, and loan term.

Rocket Mortgage offers a simple online mortgage calculator that allows buyers to adjust loan terms, down payment size, and interest rates to estimate monthly payments.

New Jersey-specific mortgage resources

Home buyers in New Jersey may qualify for programs designed to help with affordability:

• New Jersey Housing and Mortgage Finance Agency (NJHMFA): Offers down payment assistance and affordable mortgage programs
• Homeward Bound Mortgage Program: NJHMFA program that provides 30-year fixed-rate mortgages to eligible New Jersey buyers.

Average mortgage payment in New Jersey FAQ

Where can I find the lowest mortgage payment in New Jersey?

Cumberland County has the lowest average mortgage payment in the state, at about $1,620 per month.

Which county has the highest mortgage payment in New Jersey?

Monmouth County has the highest average monthly mortgage payment, at roughly $4,290.

How much do you need to make to afford a home in New Jersey?

Using the 28% housing guideline, a $2,312 monthly mortgage payment suggests a household income of approximately $99,000 per year, depending on other debts.

The bottom line: Multiple factors shape your mortgage payment in New Jersey

Mortgage payments in New Jersey are driven largely by high home prices and the nation’s highest property taxes. While some counties remain relatively affordable, buyers in commuter-heavy and coastal areas face significantly higher monthly housing costs.

Understanding local price trends, taxes, and financing options can help buyers prepare and plan for homeownership in New Jersey.

Whether you’re a first-time buyer or an experienced homeowner, get prequalified for a loan with Rocket Mortgage to understand your buying power and begin the process with confidence.

*Methodology: Average monthly mortgage payment in a region, calculated based on average home purchase price for a fixed 30-year loan and a 52-week average interest rate of 6.68% from Freddie Mac as of August 2025.

This article is for informational purposes only and is not intended to provide financial, investment, or tax advice. You should consult a qualified financial or tax professional before making decisions regarding your retirement funds or mortgage.

Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

Rocket Mortgage is not acting on behalf of FHA or HUD.

The 3% down payment option is only available on certain conventional loan products and is not available in all states. Additional terms and conditions may apply.