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Deciding how much mortgage you can afford can be stressful, but online tools can help. A mortgage calculator shows how the home price, down payment, interest rate, loan term, and property tax affect your monthly mortgage payments. It also allows you to play with different combinations (higher down payment? shorter term?) to see what works best for your finances. Follow this guide to use the New Jersey mortgage calculator to best advantage.
Key Points
• Use a mortgage calculator to estimate monthly mortgage payment, total interest, and overall loan cost.
• Understand how different down payment amounts and loan terms affect your financial commitment.
• Consider down payment assistance programs for first-time homebuyers and those with limited savings.
• Go through the mortgage preapproval process to understand your borrowing capacity.
• Avoid financial strain by calculating different possible combinations of home price, down payment, and loan term with this simple tool.
New Jersey Mortgage Calculator
Calculator Definitions
• Home price: The home price is the purchase price you have agreed to with the home seller, which may differ from the listing price or your initial offer.
• Down payment: The down payment is the amount you would pay upfront, often expressed as a percentage of the total purchase price. Most buyers put down between 3% and 20%. A larger down payment can reduce your monthly mortgage payment and the total interest paid.
• Loan term: The loan term is the length of time you have to repay the mortgage, between 10 and 30 years. The longer the term, the lower your monthly payments — but the more interest you’ll pay over the life of the loan.
• Interest rate: The interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. It can vary based on borrower qualifications, market trends, and the type of mortgage loan.
• Annual property tax: Property tax is levied by local governments on land and buildings and is expressed as a percentage of the home’s assessed value. Search for the ZIP code or county name where the property is located and “effective property tax rate” to find the number, or use the New Jersey average of 1.77%.
• Monthly payment: This is what you would pay toward the principal, interest, and property taxes each month. Your monthly payment may also include private mortgage insurance (PMI) if your down payment is less than 20%, homeowners insurance, and homeowners association (HOA) fees, if applicable.
• Total interest paid: The total interest paid is the amount of interest you will pay over the life of the loan. It is influenced by the principal amount, interest rate, and loan term. A higher interest rate or longer loan term will result in more interest paid.
• Total loan cost: The total loan cost is the all-in amount you will repay for the home loan, including principal and interest.
How to Use the New Jersey Mortgage Calculator
Step 1: Enter Your Home Price
Enter the amount you would pay the seller for the property.
Step 2: Select a Down Payment Amount
Choose the percentage of the home price you will pay upfront. A down payment calculator can show you what’s necessary to hit the 20% mark if you wish to avoid PMI.
Step 3: Choose a Loan Term
Select the duration over which you will repay your home loan. Consider your financial goals and budget when choosing the term.
Step 4: Enter an Interest Rate
Input your desired interest rate to the second or third decimal point. This significantly impacts your monthly payment and total loan cost.
Step 5: Add Your Annual Property Tax
Enter the percentage of your home’s value that you will pay each year to the local government. Property taxes vary by location.
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator estimates monthly payments based on loan amount, interest rate, loan term, and property taxes, as noted above. Having this tool is especially helpful if you’re buying your first home and obtaining a mortgage is new to you. Putting different numbers into the calculator can help you compare costs, showing how various factors affect your payments. For example, you’ll see that a 15-year mortgage has higher monthly payments but less total interest than a 30-year one.
Deciding How Much House You Can Afford in New Jersey
In New Jersey the median home sale price in mid-2025 was around $586,000. Let’s use that as an example to see how monthly costs would shape up, to give you a sense of how much home you can afford. Lenders advise mortgage payments be under 28% of gross monthly income. To afford a $586,000 home with 20% down ($117,200), you’d need an annual income of about $135,000, assuming you don’t have other significant debts and the interest rate on a 30-year loan was 7.00%. Your monthly payment would be roughly $3,100.
If you want to work backward from your income to determine your home-buying budget, try using a home affordability calculator, which also takes into account any other debts you may have. Or go to the gold standard method: Seek out specifics of the loan you might qualify for by going through the mortgage preapproval process with a lender. You’ll provide detailed financial information for the lender to consider.
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:
Components of a Mortgage Payment
As noted above, your mortgage payment’s main components are principal (the borrowed amount) and interest (your borrowing cost). Your monthly payment might also include property tax — after all, it is in the lender’s interest for you to keep current on tax payments, as your home is the collateral for your loan. If your down payment is below 20%, you may also need private mortgage insurance (PMI). Home insurance and HOA fees round out the list of things that lenders might want included in your payment.
The cost of living in New Jersey is relatively high, weighing in at 115.1 on an index where 100 is the average cost of living in the U.S. So living in the Garden State isn’t exactly a walk in the park, financially speaking. Happily, there are some towns that landed on a list of the best affordable places in the U.S., including Pennsauken Township, Gloucester Township, and Trenton.
Some properties in New Jersey may require a jumbo loan, a type of mortgage loan for higher-cost properties, and these properties can have minimum down payment amounts of 10% and up. As you can see on the chart, the Bergen-Passaic area is particularly expensive. Understanding how costs for food, utilities, transportation, and health care might impact your monthly budget if you are moving to the area for the first time is another important part of the home-buying process. Take a look at how New Jersey cities compare on affordability. These stats come from the Council for Community and Economic Research.
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.
Tips on Reducing Your Mortgage Payment
If you’re not entirely satisfied with your interest rate or monthly housing costs once you are in a home, there are ways to lower your payments. Here are your options:
• Request that your lender drop PMI once you reach 20% home equity.
• Make a substantial payment toward your principal owed and request that the lender recast your mortgage, which will recompute your monthly payment.
• Appeal property taxes if they seem to be higher than the local market. Note that this can sometimes backfire, though. Particularly if you have made any significant home improvements, it may be unwise to request a reassessment.
• Undertake a mortgage refinance if lower rates or a longer term will reduce monthly payments. Don’t forget to factor in closing costs when considering this option.
• Shop for cheaper homeowners insurance.
New Jersey First-Time Homebuyer Assistance Programs
If you’re buying your first home, there are often assistance programs available to help you cover the initial costs. To qualify as a first-time homebuyer, you must not have owned a primary residence within the past three years. Down payment assistance programs can provide financial aid to help you with the down payment, closing costs, or both. By leveraging New Jersey down payment assistance programs, you can better manage your budget and ensure a smoother homebuying process.
Understanding the components of a mortgage payment and using a New Jersey mortgage calculator are essential steps for prospective homebuyers. These tools help you estimate your monthly payments, total interest, and overall loan costs, ensuring you make informed financial decisions. Whether you’re a first-time buyer or a seasoned homeowner, spending some time running different combinations of numbers in a mortgage calculator can provide valuable insights and can help you avoid financial strain.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
Should I choose a 30-year or 15-year mortgage term?
Which mortgage term you choose depends on your financial goals and situation, but it’s best to choose the term that yields a payment amount that you can manage every month without straining your budget. A 30-year term offers lower monthly payments, but choosing this term means you’ll pay more interest over the life of the loan. A 15-year term has higher monthly payments but you’ll pay less interest overall. Remember if you can’t swing a shorter term now, you can always make extra payments along the way to chip away at what you owe and lower overall costs.
How can I get a lower mortgage interest rate?
Improve your credit score, shop around for lenders, and consider a shorter loan term to secure a lower interest rate.
Can I afford a $300K house on a $70K salary?
Lenders might find it hard to give the okay to a $300,000 home purchase if you have a salary of $70,000 per year, unless you are able to put down a large down payment or have another source of income in addition to your salary. One general rule is that your house price should not exceed three times your salary.
How much is a $600,000 mortgage payment for 30 years?
The cost of a $600,000 mortgage with a 30-year term will depend on your interest rate, so the best way to estimate your payment is to use a mortgage calculator online. But for example: You would pay $3,597.30 per month at an interest rate of 6.00%. At 8.00%, the payment would be $4,402.59. This estimate includes principal and interest but not property taxes, insurance, or other fees.
SoFi Mortgages
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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.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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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