Best New Jersey Mortgage and Refinance Rates for October 2020

Mortgage rates in New Jersey are comparable to other states with a mortgage program that provides up to $10,000 in downpayment assistance to qualifying first-time homebuyers.

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Current New Jersey Mortgage Rates

Compare today’s average mortgage rates in the state of New Jersey, based on an aggregated pool of rates from multiple sources.

Product Rate Rate Last Week
30-Year Fixed Rate3.180%3.190%
15-Year Fixed Rate2.710%2.710%
5/1 ARM Rate3.200%3.200%
30-Year Jumbo Mortgage Rate3.220%3.220%
30-Year Fixed Refinance Rate3.220%3.250%

Rates data based on Elizabeth, New Jersey as of 10/19/2020

Mortgage Rates Trends

In this graph:

On , the APR was for the 30-year fixed rate, for the 15-year fixed rate, and for the 5/1 adjustable-rate mortgage rate. These rates are updated almost every day based on Bankrate’s national survey of mortgage lenders. Toggle between the three rates on the graph and compare today’s rates to what they looked like in the past days.

Note: Not sure how much house you can afford? Use our mortgage calculator to find out.

Are you thinking about buying a home in New Jersey? Mortgage rates New Jersey homeowners pay track closely to the national average, with current rates near the lowest the state’s ever seen. Low rates go a long way in New Jersey since it is one of the most expensive states to own a house. According to the New Jersey Realtors’ monthly housing market statistics, the median sale price for a single-family home through March 2020 was $335,000. On top of that, New Jersey has the highest property taxes of any state, with the average New Jersey homeowner paying the value of 2.44 % each year.

Getting a mortgage in New Jersey

Current mortgage rates residents pay are often paired with the state’s various mortgage assistance programs to provide you an excellent chance to secure top mortgage rates in New Jersey at a competitive rate. If you’re looking to buy your first home, you can take advantage of New Jersey’s Down Payment Assistance Program, which provides a $10,000 interest-free, forgivable loan with a five-year term if you secure a loan through the NJHMFA First-Time Homebuyer Mortgage Program.

If you’re looking to upgrade or downsize your current home, you’ll also find competitive rates with lenders all across the state and no surprise rules or regulations. If you’re moving to New Jersey from a lower cost-of-living area, however, be prepared to pay more for a house than you’re used to — median home values are 62.5% higher than the national average.

  1. Median home price: $327,900
  2. Average 30-year fixed rate: 3.19%
  3. Median monthly mortgage cost: $2,439
  4. Homeownership rate: 63.9%

New Jersey mortgage rate trends 

NJ mortgage rates have followed the national average over the last three years. According to Freddie Mac’s Primary Mortgage Market Survey, mortgage rates reached a recent peak of 4.94% for a 30-year fixed-rate mortgage in November 2018 before falling steadily ever since. The coronavirus crisis brought mortgage rates down to record lows in May 2020 across New Jersey and the United States.

If you’re in the market for a home, landing a mortgage with an excellent rate in New Jersey is reasonable. The Federal Reserve cut its federal funds rate to 0% in March 2020. While the Federal Reserve funds rate doesn’t directly set mortgage rates, it does make it cheaper for banks to lend money to each other to meet their daily cash reserve limits. This savings is usually passed on to the consumer in the form of lower interest rates.

New Jersey current mortgage rates

Now’s a great time to buy a home in New Jersey. With refinance rates New Jersey homeowners pay hovering around all-time lows, you can save thousands of dollars in interest over time if you lock in a 30-year fixed-rate mortgage at 3.19% — the current average mortgage rate in New Jersey. Of course, your rate will be different based on your credit history, the loan term, the points you pay to the lender, and other financial factors.

The current average for a 15-year fixed, for example, is 2.70% for a new loan. But the low rates you see right now aren’t just great for people looking to buy a home. Refinance rates in New Jersey are also incredibly low. If you have a higher rate on your current home in New Jersey, you can save some cash by refinancing into a 30-year refinance loan with a 3.09% average rate.

Most and least expensive places to live in New Jersey

New Jersey is one of the most expensive places to live in the United States, but it varies significantly from county to county — and even from town to town within those counties. New Jersey is home to some of the wealthiest areas in the United States but also offers some affordable regions. Generally, counties in northeast New Jersey near New York City have significantly higher home prices than those located in the southern part of the state near Philadelphia and Dover.

5 most expensive

  1. Hunterdon County is the wealthiest county in New Jersey. Between 2014 and 2018, the median home price was $402,800 — 22% higher than the state average.
  2. Morris County had a median home price of $448,800 between 2014 and 2018.
  3. Somerset County has a median household income of $111,772, and the median home price is $420,500.
  4. Bergen County is the most populous county in the state and features a median household income of $95,837 and a median home price of $459,200.
  5. Monmouth County has a median home price of $408,400, and the median household income is $95,699.

5 least expensive

  1. Cumberland County is the poorest county in New Jersey, with the median home price being only $162,500.
  2. Atlantic County is home to Atlantic City, stretching from the coast into the middle of the state. The median home price here is $218,300.
  3. Salem County has a median household income of $64,309, and the median home price is $185,300.
  4. Camden County has a median home price of $195,800, with an average household income of $67,118.
  5. Burlington County has a median home price of $247,600, and the median income is $84,992.

New Jersey mortgage resources and intricacies

New Jersey offers a few mortgage services through the New Jersey Housing and Mortgage Finance Agency (NJHMFA). First-time homeowners are the biggest beneficiaries of these programs because they can qualify for a government-insured 30-year fixed-rate loan through the First Time Homebuyer Mortgage Program, which gives them downpayment assistance up to $10,000.

Police and firemen with at least one year of active membership in the Police and Firemen’s Retirement Service can also receive some mortgage assistance through the NJHFMA Police and Firemen’s Retirement System Mortgage Program. This program is available to both first-time homebuyers and those looking to either trade up or trade down their current home with a government-insured 30-year fixed-rate loan.

Outside of these programs, new mortgages and refinancing in New Jersey function very similarly to those in other states. You should contact a lender in New Jersey to discuss the loan types and terms that you qualify for.

First-time homebuyer programs in New Jersey

If you’re a first-time homebuyer in New Jersey, you’ll want to know about several assistance programs available to you.

  • NJHFMA Down Payment Assistance Program: In New Jersey, the NJHMFA Down Payment Assistance Program (DPA) offers $10,000 for first-time homebuyers. The DPA can be used as a down payment and to help with closing costs. A few perks of the DPA are that it is an interest-free, 5-year forgivable loan with no monthly payment. However, it must be paired with an NJHMFA first mortgage loan. That mortgage loan is a 30-year fixed-rate loan that is government insured. Be sure to research whether you qualify for this program, as there are restrictions such as maximum household income and purchase price. 
  • NJHMFAs First-Time Homebuyer Mortgage Program: If you’re a first-time homebuyer, you may qualify for New Jersey Housing and Mortgage Finance Agency’s (NJHMFA) First-Time Homebuyer Mortgage Program. Through this program, first-time homebuyers have access to 30-year, fixed-rate government-insured loans through an NJHMFA participating lender. To qualify for this loan, you must be a first-time homebuyer and purchase the home in New Jersey. Your eligibility will also depend on your income and the price of the home. 
  • Police and Firemen’s Retirement System Mortgage Program: If you’re an active member of the New Jersey Police and Firefighter Retirement System (PFRS), you’re in luck. The Police and Firemen’s Retirement System Mortgage Program offers mortgage assistance to members looking to buy a home or refinance their current home. Members don’t have to be first-time homebuyers, but they do have to have a year of creditable service under their belt to be eligible. Mortgage amounts top out at $510,400, while interest rates are 30-year fixed. Expect rates to be set semi-annually in February and August. You can learn more about this program via this Police and Firemen’s Retirement System Mortgage Program Fact Sheet.

Refinancing in New Jersey 

New Jersey has historically low rates when it comes to refinancing homes. As of October 4, 2020, the 30-year fixed refinance rate is 3.09%. It’s a good time to refinance if you fall under the following qualifications.

  1. You can lock a lower rate with either your current mortgage lender or find a more competitive rate through a different lender. This could save you thousands of dollars over time.
  2. The refinance terms make sense for you financially — and this could depend on your credit score, employment status, and average rates.
  3. If you have a credit score of 620 or higher. If this is the case, you want to consider applying for New Jersey’s Stay At Home Streamline Refinance Program. These loans offer 30-year fixed interest rates.

The final word

Current mortgage rates in New Jersey make buying a home in the Garden State much more accessible than ever before. Refinance rates in New Jersey are also low, which can help you save money. The state features some of the most expensive real estate in the country but has several pockets more affordable than others. If you’re interested in buying a house in New Jersey, check with a qualified lender to see what a home in New Jersey will cost you.

Trevor Wallis

Contributing Writer

Author Information: Trevor Wallis is a freelance content writer helping marketing and personal finance companies share their wealth of knowledge with the world. You can read his rants about cash and coffee on Twitter.