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Mortgage rates in New Jersey
Interest rates on a 30-year $300,000 conventional mortgage start at around 3.125%
If you have a credit score between 700 and 719 and can put 5% down, you’ll generally pay about 3.250% for a 30-year conventional loan with a fixed interest rate on a $350,000 home. But how much interest you pay for your New Jersey home will depend on several factors, including your credit score, loan amount and lender.
Rates were last checked on October 6 and are from the Consumer Financial Protection Bureau (CFPB) website.
Your credit score affects the rate you’ll get
People with higher credit scores generally get lower interest rates because lenders assume they’re less likely to stop paying a mortgage. Here are the most common interest rates in New Jersey by mortgage amount, according to the Consumer Financial Protection Bureau (CFPB).
| Credit score | $200,000 mortgage | $300,000 mortgage | $400,000 mortgage | $500,000 mortgage |
|---|---|---|---|---|
| 620-639 | 3.938% | 3.875% | 3.750% | 3.750% |
| 640-659 | 3.750% | 3.750% | 3.625% | 3.625% |
| 660-679 | 3.500% | 3.500% | 3.500% | 3.500% |
| 680-699 | 3.375% | 3.250% | 3.250% | 3.250% |
| 700-719 | 3.250% | 3.250% | 3.250% | 3.250% |
| 720-739 | 3.188% | 3.125% | 3.125% | 3.125% |
| 740-759 | 3.125% | 3.125% | 3.063% | 3.063% |
| 760-779 | 3.125% | 3.125% | 3.063% | 3.063% |
| 780-799 | 3.125% | 3.125% | 3.063% | 3.063% |
| 800+ | 3.125% | 3.125% | 3.063% | 3.063% |
*Based on a 10% down payment for a 30-year fixed-rate conventional mortgage
Interest rates vary by lender
Interest rates are affected by the economy and the federal funds rate, or the rate that banks charge each other for overnight loans. But they’re also affected by individual lenders, which can have differing overhead costs, profit margins and credit score requirements.
Comparing lenders can help you find the best deal. Select See rates to provide the company with basic property and financial details for personalized rates.
Interest rates also vary by loan type
The type of loan you get can also affect how much you pay for your New Jersey home. 15-year mortgages generally offer lower interest rates than 30-year mortgages, and you’ll see different rates for conventional loans than government loans.
| Loan type | $200,000 mortgage | $300,000 mortgage | $400,000 mortgage | $500,000 mortgage |
|---|---|---|---|---|
| 15-year conventional | 2.500% | 2.375% | 2.375% | 2.375% |
| 30-year conventional | 3.250% | 3.250% | 3.250% | 3.250% |
| 15-year FHA | 2.500% | 2.500% | Not elegible | Not elegible |
| 30-year FHA | 3.000% | 3.000% | Not elegible | Not elegible |
| 15-year VA | 2.750% | 2.625% | 2.500% | 2.563% |
| 30-year VA | 3.250% | 3.250% | 3.125% | 3.125% |
*Based on a 10% down payment, fixed interest rate and 710 credit score
Research ahead of time to get the best rates
A few strategies to get a better rate on your loan:
- Learn about different loan products. Loan programs vary and often have different rates. Learn about what programs you qualify for and then compare rates.
- Focus on your credit scores. Pay off as much existing debt as possible and pay all bills on time to help increase your credit score. Borrowers with good to excellent credit typically receive the best rates from lenders.
- Research closing costs. Average closing costs in New Jersey are 0.97% to 1.29% of the purchase price of the home. Some lenders may advertise lower rates while hitting you with higher closing costs. Weigh these costs against the mortgage rate to see the true cost of the loan.
Home values in New Jersey are forecast to increase
According to Zillow‘s forecasts for 2022, the home values in New Jersey’s larger cities are expected to rise by over 10%. The biggest gains are anticipated in Ocean City with a 14.3% increase. And Trenton’s 10.6% increase is the lowest of the big city forecasts.
In addition to these increases, New Jersey’s low inventory may mean long lines at open houses and significant bidding wars over every listing.
5 fast facts about the New Jersey housing market
New Jersey is an expensive place to live, so If you’re planning a move, consider the following facts while you shop:
- New Jersey property taxes are the most expensive in the US at 2.49%.
- New Jersey law requires that an attorney must review your offer and contract once the offer is accepted.
- The cost of living in New Jersey is well above the US national average, and a big part of that is housing and utility costs.
- The hottest part of the housing market is in suburban areas, with many homebuyers leaving cramped cities for more living space.
- The average price of a New Jersey single-family home is $100,000 more in 2021 than it was in the same month a year earlier.
Bottom line
Mortgage rates in New Jersey vary by loan type, and factors like your credit score and lender affect what rate you get. But factors like your credit score and lender affect what rate you get. Compare mortgage lenders and programs to find one that best fits your homeownership goals.
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