How much house can I afford in New Jersey?
Your buying power, with the New Jersey numbers in it
Enter your income, your monthly debts and your down payment, and this calculator tells you the home price you can afford and what the monthly payment would look like. Unlike most online calculators, it counts the three things that decide the real number in Hudson County: property tax, the condo or HOA fee, and mortgage insurance when you put less than 20% down.
I am Bogdan Nicolae Rus, a REALTOR® with eXp Realty (New Jersey license #2186044) in Hoboken. I run these numbers with every buyer before we see a single home, so we look at the right price range from the start. I work in English, Romanian and Spanish. Vorbim românește. Se habla español.
Estimate what you can afford
Advanced settings: property tax, insurance, mortgage insurance, debt limits
You can afford a home around
- Monthly housing budget the limits allow
- Loan amount
- Principal and interest
- Property tax
- Homeowners insurance
- Condo or HOA fee
- Mortgage insurance
- Total monthly payment
Turn on JavaScript to use the calculator, or read the worked example and the rules below; they use the same arithmetic.
Estimate for planning only, from the numbers you enter. It is not a loan offer, a pre-approval or financial advice; I am a real estate agent, not a lender. Lenders also look at credit score, reserves, job history and the specific loan program, and property tax depends on the actual assessment of the home. The default values are assumptions you should change to match your situation.
The arithmetic behind the number
- Two limits, the lower one wins. Housing costs up to the housing limit (28% of gross monthly income by default), and housing plus your other debts up to the all-debts limit (36% by default). Whichever leaves less room sets your monthly budget.
- The budget is split five ways. Principal and interest on the loan, property tax at the rate you set, homeowners insurance, the condo or HOA fee, and mortgage insurance if the down payment is under 20%.
- Then it solves for the price. The loan is the price minus your down payment; the calculator finds the price where those five lines add up to exactly your budget.
- New Jersey changes the answer. At a 2% tax rate, a $800,000 home carries about $1,333 a month in tax before the mortgage. That is why two buyers with the same income can afford very different prices in Hoboken and in a lower-tax town.
One household, three kinds of home
Household income of $180,000 a year, $500 a month in other debts, $150,000 down, a 30-year loan at 6.5%, insurance of $120 a month, and the default 28% / 36% limits. The housing limit allows $4,200 a month; the all-debts limit allows $4,900 after the $500 of debts, so $4,200 is the budget. Here is what that buys, three ways.
- Price $630,000
- Loan $479,508
- Principal and interest $3,031
- Property tax $1,049
- Insurance $120
- Total $4,200 / month
- Price $573,000
- Loan $423,169
- Principal and interest $2,675
- Property tax $955
- Insurance $120
- Condo fee $450
- Total $4,200 / month
- Price $605,000
- Loan $454,715
- Principal and interest $2,874
- Property tax $756
- Insurance $120
- Condo fee $450
- Total $4,200 / month
Prices are shown to the nearest $1,000 and the lines to the dollar, exactly as the calculator shows them. The point is the spread: a $450 condo fee costs this buyer about $55,000 of price, and half a point of property tax gives about $30,000 of it back.
From an estimate to a pre-approval
A number from a calculator gets you looking in the right range. A pre-approval letter from a lender is what gets your offer taken seriously, and in Hudson County the first complete offer often wins. When you are ready, I introduce you to a lender who answers the phone (my first call is on the partners page), and we start with the buyer form or a private consultation.
Call (201) 584-6156 · Text mebogdan@bogdannicolaerus.com
eXp Realty, 50 Harrison St, Suite 205, Hoboken, NJ 07030
Affordability in New Jersey: frequently asked questions
How much house can I afford on my salary in New Jersey?
A common lender rule is that housing costs (mortgage, property tax, insurance, condo or HOA fee) should stay under about 28% of gross monthly income, and all debts together under about 36%. Some loan programs go higher. Enter your numbers above; the calculator applies those two limits and takes the lower one. In New Jersey the property tax line matters more than in most states, so it is a separate input here.
Why does the calculator ask for a property tax rate?
Because in Hudson County the tax can be a quarter or more of the monthly payment, and it changes the price you can afford by tens of thousands of dollars. Rates differ by town and by how a specific home is assessed, so the calculator uses the rate you enter as a share of the price per year. For a real answer on one home, send me the address and I pull the actual tax bill.
Does the calculator include the condo or HOA fee?
Yes. Most homes for sale in Jersey City and Hoboken are condos, and lenders count the monthly fee in your housing cost, so a $400 fee lowers the price you qualify for just as a higher tax bill does. Enter the fee of the kind of building you are looking at; leave it at zero for a house.
What is mortgage insurance and when do I pay it?
With a conventional loan and less than 20% down, lenders usually add private mortgage insurance (PMI) to the payment until you reach 20% equity. The calculator adds it automatically when your down payment is below 20% of the price, using the rate in the advanced settings. FHA loans use a different insurance structure; a lender can quote that.
Is this a pre-approval?
No. It is an estimate from your own numbers, for planning. A pre-approval comes from a lender who checks your credit, income and assets, and that is the letter a seller wants to see with your offer. When you are ready, I introduce you to a lender; my first call is on my partners page.
What other costs should I plan for when buying in New Jersey?
Closing costs on top of the down payment: the lender's fees, the attorney, title insurance, the inspection and the first escrow deposits for tax and insurance. The state transfer fee and the mansion tax are paid by the seller in New Jersey (see my transfer fee calculator). Then moving costs, and a reserve for the first repairs.