New Jersey Closing Cost Calculator
Estimate your closing costs with NJ-specific fees including attorney costs, title insurance, and escrow prepayments. Budget 3-6% of your purchase price for closing costs in New Jersey.
Understanding NJ Closing Costs
Attorney Required
New Jersey is an attorney state. You must have legal representation at closing, adding $1,500-3,000 to your costs. This protects your interests but increases total closing expenses.
Title Insurance
NJ title insurance costs about 0.5% of purchase price (higher than national 0.3-0.4%). On a $500K home, expect $2,500 for title insurance to protect your ownership rights.
Property Tax Escrow
Bergen County has 2.2% average property tax rate. You'll prepay 6 months at closing. On a $500K home, that's $5,500+ added to your cash needed at closing.
Frequently Asked Questions
What are typical closing costs in New Jersey?
Closing costs in NJ range from 3-6% of purchase price, higher than the 2-5% national average. This includes origination fees (0.5-1%), attorney fees ($1,500-3,000), title insurance (0.5%), appraisal ($500-700), and escrow prepayments for taxes and insurance.
Can the seller pay my closing costs?
Yes, through seller concessions. Conventional loans allow 3-6% (depending on down payment), FHA allows up to 6%, and VA allows up to 4%. This can significantly reduce your cash needed at closing. Your attorney can negotiate this in the purchase contract.
What closing costs are included in escrow?
Escrow prepayments include 6 months of property taxes and 1 year of homeowners insurance. In Bergen County (2.2% property tax rate), this adds significant costs. On a $500K home, expect $5,500 for property tax escrow plus $1,500 for insurance.
Are there ways to reduce closing costs?
Yes: (1) Negotiate seller concessions, (2) Shop lenders for lower origination fees, (3) Consider a no-closing-cost loan (higher rate but $0 upfront), (4) Close at end of month to reduce prepaid interest, (5) Ask lender for lender credits to offset costs.
Get Your Official Closing Cost Estimate
Ready to buy in Bergen County? Get a detailed Loan Estimate with exact closing costs from CMG Home Loans.
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