Conventional loan in New Jersey: what it costs on the median home, and when PMI ends

On New Jersey’s rough $540,000 median, a conventional loan with 5% down means $27,000 at closing and about $4,568 a month with taxes and mortgage insurance; with 20% down, $108,000 and about $3,735. Everything below is worked on those numbers and on the state rules that change them.

The New Jersey conforming limit and where jumbo starts

A conventional loan is conforming when it fits Fannie Mae and Freddie Mac’s limit and their guidelines; in New Jersey that limit is $832,750 for a one-unit home in 2026. With 20% down, a purchase up to about $1,040,938 stays conforming; with 5% down, up to about $876,579. The state’s $540,000 median leaves ample room, so a typical purchase here is conforming unless the buyer is in a premium neighborhood. Every New Jersey county is in the table below; see conforming loan limits and jumbo loans.

Conforming limits for all 21 New Jersey counties

The 21 counties of New Jersey split into two groups for 2026: 9 at the $832,750 baseline and 12 FHFA high-cost counties (bold in the table) with one-unit limits up to $1,209,750. A buyer who crosses into Bergen County, Essex County, Hudson County and 9 more gains $377,000 of conforming room over a baseline county.

Source: FHFA, Conforming Loan Limit Values for 2026 (county list, mortgages acquired in calendar year 2026). Limits are for Fannie Mae and Freddie Mac loans; FHA and VA use their own county figures.

Monthly cost on a $540,000 New Jersey home

Illustrative 6.5% 30-year fixed rate, principal and interest only; mortgage insurance at typical market rates for each down payment (it varies with credit score); property tax at the state’s approximate 2.23% effective rate. Homeowners insurance and any HOA come on top. None of it is an offer.

Below 20% down, the 3% and 5% programs (HomeReady, Home Possible, Conventional 97) have income or first-time conditions; see 3% down conventional loans.

Cancelling mortgage insurance: the dates

Under the Homeowners Protection Act, the 80% request point and the 78% automatic point are measured against the original value. The scheduled payments on the $513,000 5% down loan reach 80% after about 10 years and 4 months, on the $486,000 10% down loan after about 7 years and 11 months. Fannie Mae and Freddie Mac servicers also cancel on current value — typically 75% LTV after two years or 80% after five — which in a rising New Jersey market can come sooner.

The New Jersey closing: costs and who runs it

Who closes depends on geography: in northern New Jersey each side usually has an attorney and the buyer’s lawyer runs the closing, while in the southern counties title companies conduct most settlements without counsel. Every contract written by a real estate licensee carries a three-business-day attorney review clause, a product of the 1983 consent judgment in the New Jersey State Bar litigation, during which either lawyer can cancel. New Jersey is a wet-funding state, and attorney fees of roughly a thousand dollars or more per side are typical in the north.

New Jersey collects no tax on the mortgage itself; mortgages are recorded at the county clerk or register for per-page fees. The Realty Transfer Fee is a graduated charge on the deed paid by the seller, and a separate buyer-side fee applies to residences above $1 million, with rates that were restructured in 2025. Because the transfer fee rides on the deed, refinances and second mortgages escape it entirely. New Jersey’s realty transfer fee is graduated and paid by the seller, roughly 1% on a typical sale (reduced for seniors and low-income sellers); buyers pay a 1% “mansion tax” on purchases of $1 million or more.

New Jersey buyers generally avoid the transfer fee but face attorney fees, title insurance and lender costs — about 2% to 3% of the price — plus large property tax escrows given the highest effective rate in the nation.

State law a conventional borrower should know

Prepayment. N.J.S.A. 46:10B-2 gives the borrower on a mortgage loan secured by a one-to-six family residence the right to prepay at any time without penalty, and the statute applies regardless of the lender’s charter. On a conforming loan the question is moot — the agencies do not accept penalties — but check a portfolio or jumbo note.

Spouses and title. New Jersey is an equitable-distribution state, not a community property state, so a spouse who is not on the loan brings neither income nor debts into underwriting.

Homestead. New Jersey is one of the few states with no homestead exemption against creditors: a judgment creditor may levy on a home’s equity, and the only shelter is the tenancy-by-the-entirety rule for married owners and the federal or limited state exemptions in bankruptcy.

The complete state layer — licensing, predatory-lending limits, disclosures, foreclosure — is on mortgage laws in New Jersey.

Frequently asked questions

What is the conforming loan limit in New Jersey for 2026?

There is no single New Jersey number: 12 of the state’s 21 counties are FHFA high-cost areas in 2026, with one-unit limits between $1,209,750 and $1,209,750 (Bergen County, Essex County, Hudson County and 9 more); the other 9 use the $832,750 baseline. Above your county’s limit, the loan is jumbo.

When can I cancel PMI on a conventional loan in New Jersey?

The request point is 80% of the original value, the automatic point 78% — federal rules, identical in New Jersey. With 5% down on the state’s $540,000 median at 6.5%, the amortization schedule alone gets you to 80% in roughly 10 years and 4 months; with 10% down, in about 7 years and 11 months. Paying extra principal shortens both.

Does New Jersey add anything to a conventional loan’s closing costs?

New Jersey collects no tax on the mortgage itself; mortgages are recorded at the county clerk or register for per-page fees. New Jersey’s realty transfer fee is graduated and paid by the seller, roughly 1% on a typical sale (reduced for seniors and low-income sellers); buyers pay a 1% “mansion tax” on purchases of $1 million or more. New Jersey buyers generally avoid the transfer fee but face attorney fees, title insurance and lender costs — about 2% to 3% of the price — plus large property tax escrows given the highest effective rate in the nation.

Related: Mortgage underwriting: what happens between pre-approval and clear to close, Mortgage recast: lowering the payment without refinancing, Financing a duplex, triplex or fourplex: down payment, rental income and the rules that change, Assumable mortgages: taking over a seller’s low rate, and what it really costs. First home in New Jersey: programs and assistance. Hub: Conventional loan.