New Jersey Mortgage and Refinance Rates

Current mortgage rates in New Jersey

As of Monday, September 15, 2025, current interest rates in New Jersey are 6.42% for a 30-year fixed mortgage and 5.74% for a 15-year fixed mortgage.

Mortgage rates in New Jersey — and nationally — have fallen in recent months due to economic uncertainty, but they’re still much higher than they were during COVID. After peaking near 8 percent in late 2023, they’re now hovering between 6 and 7 percent. Although mortgage rates change often and are difficult to predict, experts believe they’ll remain in this range — though they may fall a bit further — for the rest of the year and into 2026. 

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 might not be an appealing proposition. According to Realtor.com, more than half of all mortgageholders have a rate below 4 percent. 

On the other hand, if you took out your mortgage when rates were closer to 8 percent, it might make sense to refinance now. Refinance applications in New Jersey were up more than 11 percent year-over-year in May, according to real estate data provider ATTOM. 

You may also have a significant amount of equity in your home due to New Jersey’s rising home values. In fact, ATTOM reports that more than 48 percent of New Jersey homeowners are equity rich, meaning they own at least 50 percent of their property. If you own more than 20 percent of your home, you may be able to fund large expenses, like home improvements and education, with a cash-out mortgage refinance.

National mortgage rates by loan type

New Jersey housing market statistics and trends

The median sales price for a home in New Jersey is much higher than the national median. But the state’s proximity to two major Northeast hubs — New York City and Philadelphia — keeps demand strong despite the high (and increasing) prices. Home sales were up by almost 4 percent in June over the prior year. Meanwhile, the number of homes that sold above list price decreased by about 5 percent during the same period. 

• Median home sales price, May 2025: $550,000
• Median home value, May 2025: $557,300
• Median down payment, May 2025: $107,000
• Median days on market, June 2025: 35
• Percentage of homes sold above list price, June 2025: 55.8%
• Percentage of homes with price drops, June 2025: 22.5%
• Homeownership rate, Q1 2025: 62.9%

Source: ATTOM, Redfin, New Jersey Realtors, 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 credit score of at least 580, you could qualify for a down payment of as little as 3.5 percent.
• 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 typically 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 your first home purchase.
• 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 require higher credit scores 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 mortgages, including:

• 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 range, 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 might 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) with at least one year of creditable service could be eligible for competitive mortgages and refinancing loans through NJHMFA. You don't need to be a first-time homebuyer to qualify.

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.