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A New Jersey jumbo loan calculator can help you estimate monthly payments, calculate the total interest paid, and show total loan costs associated with financing a high-value property. In New Jersey, a loan is considered a jumbo loan if it exceeds the conforming loan limit, which is $806,500 in some counties and $1,209,750 in others.
Keep reading to learn the key components of a jumbo loan, how jumbo loans differ from conforming loans, and how to use our New Jersey jumbo loan calculator.
Key Points
• A jumbo loan is a mortgage option for loan amounts exceeding the conforming loan limits set by the Federal Housing Finance Agency.
• In New Jersey, the conforming loan limit is $806,950 in some counties and $1,209,750 in others.
• To use the jumbo loan calculator, enter in your home price, down payment amount, loan terms, interest rate, and property tax rate.
• Jumbo loans often have stricter qualification criteria, including a higher credit score and significant cash reserves.
• Jumbo loans often require a minimum down payment of 10%. Higher down payments can improve loan terms and reduce monthly payments.
New Jersey Jumbo Loan Calculator
Calculator Definitions
• Jumbo loan: A jumbo loan is a mortgage option designed for loan amounts that exceed the conforming loan limit, a threshold established by the Federal Housing Finance Agency.
• Home price: The home price is the mutually agreed-upon purchase price between the buyer and the home seller. It helps determine the size of your home loan and the overall affordability of the property.
• Down payment: The down payment is the initial amount that a homebuyer contributes upfront when purchasing a property. Jumbo mortgage loans generally require a down payment of at least 10%.
• Loan term: The loan term is the length of time you have to repay the mortgage, typically 15 or 30 years, though 10 or 20 years are also available.
• Interest rate: The interest rate represents the cost associated with borrowing money, expressed as a percentage of the total loan amount. Factors influencing the rate include credit history, market trends, and the type of mortgage loan.
• Annual property tax: Annual property tax is a levy imposed by local governing bodies on both land and the buildings situated upon that land. This tax is typically expressed as a percentage of the property’s assessed value, determined by the local government.
How to Use the New Jersey Jumbo Loan Calculator
The New Jersey jumbo loan calculator provides a detailed breakdown of your projected monthly payments and total costs, helping you make informed decisions about your potential home purchase. Here’s a step-by-step breakdown on how to use it.
Step 1: Enter Your Home Price
Type in the final agreed-upon home price from your contract.
Step 2: Add a Down Payment Amount
Specify the amount you plan to put down upfront. A down payment of at least 10% is generally required for jumbo loans. A down payment calculator can help you decide on your number.
Step 3: Choose a Loan Term
Select the loan term that aligns with your financial goals. Common terms are 15 and 30 years, but the calculator allows you to select a term as low as 10 years. A longer term lowers monthly payments but increases total interest paid. A shorter term raises monthly payments but reduces total interest.
Step 4: Enter an Interest Rate
Input the anticipated interest rate to the second or third decimal point. Adjusting the interest rate helps you see how it impacts your monthly payments and total loan costs.
Step 5: Enter Your Annual Property Tax
Input your annual property tax rate, not the dollar value. In New Jersey, the average effective property tax rate is 2.33%.
What Are Jumbo Loans and Conforming Loan Limits?
A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). In 2025, the conforming loan limit for a single-family home in about half of New Jersey counties is $806,500, and $1,209,750 in higher-priced counties like Bergen, Hunterdon, and Ocean. For loan amounts above these thresholds, a jumbo loan is necessary.
When comparing jumbo loans vs. conventional loans, jumbo loans often come with stricter qualification criteria, such as a minimum credit score of 740 and up to 12 months of cash reserves. Despite these requirements, jumbo loans can offer competitive interest rates and the flexibility to finance more expensive properties.
Using a jumbo loan mortgage calculator offers several benefits. First, it helps you budget effectively by providing a clear estimate of your monthly payments, including principal, interest, and property taxes. This ensures you understand the full scope of your financial commitment and avoid surprises.
The calculator also shows how changes in the interest rate and loan terms will affect your future payments, allowing you to find an option that works best for you. And finally, it shows how down payments affect your loan, with higher down payments lowering both the loan amount and the monthly payment.
How to Use the Jumbo Loan Calculator to Compare Scenarios
The jumbo loan calculator allows you to compare different loan scenarios. This helps you assess affordability and plan for different financial situations. Here’s what you can do:
• Adjust the home price to see how it impacts your monthly payment and total costs.
• Change the down payment amount to explore different payment scenarios.
• Specify different loan terms to see the impact on monthly payments and total interest.
• Test varying interest rates to understand how they affect your monthly payment and overall loan cost.
• Understand the impact of property tax rates on your monthly payment.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Deciding How Much House You Can Afford in New Jersey
Considering a New Jersey mortgage? Lenders suggest mortgage payments stay below 28% of gross monthly income. For a $1 million home, assuming a 10% down payment ($100,000) on a 30-year mortgage at 6.75%, the monthly mortgage payment would be approximately $5,837, excluding property taxes and insurance. To make this payment, lenders recommend an income of $250,000 per year.
Lenders also recommended keeping total debt payments within 36% of gross monthly income. In the example above, if your debts exceed about $1,600 a month — think about student loans, credit cards, and car payments — the income needed for a $900,000 mortgage would be higher.
Mortgage preapproval can clarify your maximum mortgage, simplifying the home-buying process. Though, only you can say what a comfortable budget is, based on your assets, lifestyle, and financial goals.
The main components of a jumbo loan payment include the principal and interest. The principal is the amount borrowed, and the interest is the cost of borrowing that amount.
Other components include property tax — which is included in our calculator — as well as homeowners insurance and homeowners association (HOA) fees. Knowing how these expenses factor in gives you a clearer view of your overall financial commitment and helps you prepare for the true costs of homeownership.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Cost of Living in New Jersey
The cost of living in your area will significantly affect how much you can afford to spend on a home. New Jersey, with its high median home prices, also comes with higher costs for utilities, home maintenance, transportation, and other necessities.
According to the Missouri Economic Research and Information Center (MERIC), the cost of living index in New Jersey is 114.6 (out of 100), or about 15% higher than the national average. Housing costs are almost 40% higher than the national average. Utilities are 2% higher, groceries are 4% higher, and transportation is 4% higher.
To find the best affordable places in New Jersey, consider areas with lower property taxes and utility costs, and use a home affordability calculator to ensure you’re making a well-informed decision.
Tips on Reducing Your Jumbo Loan Payment
Even if the area of New Jersey that you want to live in necessitates a jumbo mortgage, it’s still worthwhile to explore ways to make your mortgage payment more affordable. Here are some strategies:
• Consider an adjustable-rate mortgage (ARM) to possibly initially lower your interest rate and monthly payments.
• Make a larger down payment to reduce the principal and potentially lower your interest rate.
• Recast your mortgage by making a lump sum payment to lower your monthly payments without changing the loan term or interest rate.
• Modify your loan during financial hardship to make monthly payments more manageable.
• Shop for a lower homeowners insurance rate to reduce your monthly payment.
The Takeaway
When considering a jumbo loan in New Jersey, it’s important to fully understand your potential financial obligations before proceeding. A New Jersey jumbo loan calculator can estimate your monthly payments and total interest paid, helping you decide if a jumbo loan fits within your budget.
When you’re ready to take the next step, consider what SoFi Home Loans have to offer. Jumbo loans are offered with competitive interest rates, no private mortgage insurance, and down payments as low as 10%.
SoFi Mortgages: We make mortgage loan applications smart and simple.
In New Jersey, a jumbo loan is defined as a mortgage that exceeds the conforming loan limits. For 2025, the limit for a single-family home is $806,500 in some counties and $1,209,750 in others.
How much is a $900,000 mortgage payment for 30 years?
Assuming an interest rate of 7.00%, the monthly payment on a $900,000 mortgage would be around $6,000, excluding property taxes and other costs.
Do you need 20% for a jumbo loan?
While a 20% down payment is often recommended for a jumbo loan, some lenders accept as little as 10%. A higher down payment can improve loan terms and reduce monthly payments.
How much are closing costs on a jumbo loan?
Closing costs on a jumbo loan can be higher due to the larger loan amount and additional risk. These costs typically range from 2% to 5% of the loan amount. For a $1 million jumbo loan, expect to pay between $20,000 and $50,000 in closing costs. Negotiate with the lender, ask the seller to cover some expenses, or set aside savings to manage these costs.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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