New Jersey Mortgage and Refinance Rates

Current mortgage rates in New Jersey

As of Tuesday, December 3, 2024, current interest rates in New Jersey are 7.05% for a 30-year fixed mortgage and 6.34% for a 15-year fixed mortgage.

While there has been some relief with mortgage rates dropping below 7 percent, housing affordability is still a factor many New Jersey homebuyers are navigating. Single-family home prices surged by more than 10 percent between June 2023 and June 2024, according to data from the New Jersey Realtors Association. Condos and townhomes — often seen as a more affordable option — experienced an even bigger increase: The median sales price jumped by more than 15 percent.

Refinance rates in New Jersey

If you managed to lock in a rate during the record-low days at the beginning of 2021, replacing your mortgage at today’s refinance rates isn’t an appealing proposition. However, you may have much more tappable equity now due to the state’s rising home values. With a cash-out mortgage refinance, you could take advantage of this asset to help further your financial goals.

New Jersey mortgage rate trends

Mortgage rates seem poised to fall when the Federal Reserve makes a rate cut — a move that looks increasingly likely at the next Fed meeting in September. 

While lower interest rates will provide some relief for prospective buyers in the Garden State, there are still some homebuying hurdles to overcome. Homes in the state are selling for well above their list price — over 60 percent of home sales were over list price in June 2024, according to data from Zillow.

National mortgage rates by loan type

Mortgage statistics for New Jersey

New Jersey’s proximity to two pricey Northeast hubs — New York City and Philadelphia — keeps demand for housing strong. Here are some statistics about mortgages and the housing market in the state:

• Median single-family home sales price, June 2024: $586,000
• Median condo/townhome sales price, June 2024: $430,000
• Median days to pending: 16
• Homeownership rate, Q4 2023: 62.7%

Sources: New Jersey Realtors, Zillow, U.S. Census Bureau

Mortgage options in New Jersey

If you’re looking to get a mortgage in New Jersey, there are several options:

• New Jersey conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio of no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI), as well.
• New Jersey FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580.
• New Jersey VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent for the first use.
• New Jersey USDA loans: If you’re buying a rural property in New Jersey, you might be eligible for a mortgage guaranteed by the U.S. Department of Agriculture (USDA). These loans don’t require a down payment, but you’ll need to purchase in a designated rural area and meet the area’s income limits.
• New Jersey jumbo loans: If you’re looking to borrow a large sum of money that exceeds the county’s conforming loan limits, you’ll need to find a lender that offers jumbo loans. These usually come with higher credit score requirements and a down payment of at least 10 percent. 

First-time homebuyer programs in New Jersey

First-time homebuyers in New Jersey can take advantage of several programs offered through the New Jersey Housing and Mortgage Finance Agency (NJHMFA). These provide down payment assistance and affordable, government-backed mortgages:

• NJHMFA's First-Time Homebuyer Mortgage Program: If you’re buying a primary residence in New Jersey and haven’t owned a home for at least three years, you might be eligible for this type of mortgage. You’ll be limited to buying a home within a certain purchase price limit and your income can’t exceed specific thresholds. (You can find the latest on the NJHMFA website.)
• NJHMFA Down Payment Assistance Program: This interest-free, forgivable second mortgage can provide up to $15,000 to use for a down payment or closing costs. The assistance must be paired with an NJHMFA first mortgage. If you’re a first-generation buyer, or were part of the foster care system, you can also qualify for an additional $7,000 in assistance.
• Police and Firemen's Retirement System Mortgage Program: Police officers and firefighters who are members of the New Jersey Police and Firemen's Retirement System (PFRS) could be eligible for competitive mortgages and refinancing loans through NJHMFA. You don't need to be a first-time homebuyer to qualify, but the purchased property must be your primary residence, and the loan can only be used for one- or two-family residences (duplexes) and condos.

How to find the best mortgage rate in New Jersey

• Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
• Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks, credit unions and/or mortgage companies to score the best deal.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Additional New Jersey mortgage resources

• New Jersey first-time homebuyer resources: Get more help becoming a homeowner.
• New Jersey loan limits by county: Learn the conforming loan limit for your city or town.
• New Jersey mortgage lenders: Explore mortgage lenders in your state.
• How to buy a house in New Jersey: Get set up for a successful house hunt with this guide.
• Homeowners insurance in New Jersey: Compare policies from a variety of providers.
• Mortgage calculator: Calculate possible mortgage payments to estimate what to expect.

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Laurie Richards, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English. 

Read more from Laurie Richards