1. What is the NJ Mortgage Rates Calculator?

Definition: This calculator estimates your total monthly mortgage payment in New Jersey, including principal, interest, and NJ-specific fees.

Purpose: It helps homebuyers and homeowners in New Jersey understand their full monthly mortgage obligations.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( M_{total} \) — Total monthly payment (USD)
• \( P \) — Loan principal (USD)
• \( r \) — Monthly interest rate (decimal)
• \( n \) — Number of payments (term in months)

Explanation: The first part calculates principal and interest, while the second part adds NJ-specific mortgage taxes and fees.

3. Importance of NJ Mortgage Calculation

Details: New Jersey has unique mortgage taxes (2.2% of loan amount) and fees that significantly impact monthly payments.

4. Using the Calculator

Tips: Enter the loan amount, annual interest rate (e.g., 4.125), and loan term in years (typically 15 or 30). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What are the NJ-specific fees included?
A: The calculator includes NJ's 2.2% mortgage tax plus approximately $1,200 in additional closing costs amortized monthly.

Q2: Does this include property taxes and insurance?
A: No, this calculates only principal, interest, and NJ mortgage fees. You'll need to add property taxes and insurance separately.

Q3: Why are NJ mortgage costs higher?
A: NJ has one of the highest mortgage recording tax rates in the nation at 2.2% of the loan amount.

Q4: How accurate is this calculator?
A: It provides a close estimate but actual payments may vary based on exact fees and closing costs.

Q5: Can I use this for refinancing calculations?
A: Yes, the same NJ mortgage taxes apply to refinance loans.