Current Mortgage Refinance Rates in New Jersey (December 2024)

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Updated: January 13, 2025

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The current mortgage refinance rates in New Jersey show a 5.14% rate for a 15-year fixed mortgage and a 5.82% rate for a 30-year fixed mortgage. In comparison, the national average refinance rates are slightly higher, with a 5.38% rate for a 15-year fixed mortgage and a 6.45% rate for a 30-year fixed mortgage. These figures provide a snapshot of the refinancing landscape, allowing you to evaluate how New Jersey's rates stack up against the national scene.

Our comprehensive guide on mortgage refinancing in New Jersey is designed to empower you with the knowledge and tools needed to make informed refinancing decisions. From understanding today's refinance rates and trends to knowing when and how to refinance, we offer valuable insights tailored to your financial needs. Dive into our sections and discover how you can optimize your refinancing strategy in New Jersey.

MoneyGeek used Zillow data for the rates on this page. Because mortgage rates shift daily, we use a snapshot to analyze rate information for New Jersey. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless noted otherwise, featured rates are annual percentage rates (APRs).

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This data was last updated in December 2024.

Current Mortgage Refinance Rates in New Jersey

The current 30-year refinance rate in New Jersey is 5.82%. According to Experian, the average mortgage debt in New Jersey is $276,650 as of September 2023.
If you're considering refinancing your mortgage, it could be a smart move to manage your debt by potentially lowering your monthly payments and reducing the total interest paid over the life of the loan. For instance, if your current mortgage rate is higher than 5.82%, refinancing might offer significant savings. Below are the current refinance rates in New Jersey to explore your options.

15-Year Fixed5.78%5.92%
30-Year Fixed6.46%6.55%

Mortgage Refinance Rate Trends in New Jersey

In December, refinance rate trends in New Jersey showed a decrease for both 15-year refinance rates and 30-year refinance rates. The 15-year rates dropped to 5.92%, while the 30-year rates saw a slight decline to 6.55%.

These fluctuations highlight the dynamic nature of refinance rate trends in New Jersey.

New Jersey Mortgage Refinance Rate Trends 2024
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WHY DO INTEREST RATES GO UP?

Interest rates rise due to varied factors like monetary policy changes from the US Federal Reserve and economic conditions. These shifts can impact refinance rate trends in New Jersey, affecting local homeowners. Understanding these dynamics helps you stay informed about potential changes in borrowing costs.

How to Refinance a Mortgage in New Jersey

Refinancing a mortgage in New Jersey can offer financial benefits like lower monthly payments or interest rates. Understanding the specific steps involved is crucial for a smooth process. Our guide will walk you through the necessary actions, helping you make informed decisions along the way.

  1. 1

    Check Your Credit Score

    Credit scores affect the rates you qualify for. If your score is below New Jersey's average of 725, improve it by paying down debt or disputing errors. A higher score can lead to better refinancing terms.

  2. 2

    Determine When to Refinance a Mortgage

    Compare your current mortgage terms with the market rates of 5.14% for a 15-year and 5.82% for a 30-year loan in New Jersey. If these are lower, consider refinancing, especially if you plan to stay in your home long-term.

  3. 3

    Gather Necessary Documents

    Organize documents like tax returns, pay stubs, and bank statements. This step ensures a smooth refinancing process. Having your current mortgage details ready is also crucial for comparison.

  4. 4

    Shop Around for Lenders

    Explore different lenders to find the best terms. Look for competitive interest rates, low fees, and good customer service. Comparing offers can save money and ensure you get the best deal.

  5. 5

    Understand the Costs Involved

    Be aware of closing costs such as appraisal fees and title insurance. In New Jersey, these average $7,702 according to the National Association of Realtors. Knowing these helps you budget effectively.

  6. 6

    Apply for the Loan

    Submit your application with the chosen lender. Ensure all information is accurate and complete. Using an online portal can streamline the process, making it more efficient and less time-consuming.

  7. 7

    Lock in Your Interest Rate

    Secure your rate to protect against market fluctuations. A mortgage rate lock can provide peace of mind. Doing this early can prevent potential rate increases during the loan processing period.

  8. 8

    Close on Your New Loan

    Finalize the loan by signing the necessary documents. Ensure you review all terms and conditions. Scheduling the closing at a convenient time can reduce stress and ensure you have ample time to address any issues.

  9. 9

    Start Making Payments on Your New Loan

    Begin payments according to the new loan schedule. Setting up automatic payments can help avoid missed payments and ensure you stay on track with the new terms.

  10. 10

    Reevaluate When to Refinance a Mortgage

    Regularly assess your mortgage terms and market conditions. Staying informed about rate changes can help determine future refinancing opportunities. Keeping a financial calendar can remind you to review your mortgage periodically.

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HOW SOON CAN YOU REFINANCE A MORTGAGE?

In New Jersey, how soon you can refinance a mortgage depends on your loan type. Conventional loans can be refinanced immediately, but a cash-out refinance typically requires a six-month seasoning period. USDA loans, on the other hand, have a 12-month waiting period before refinancing is possible. These timeframes ensure the property continues to meet the necessary guidelines.

It's essential to consider the costs associated with refinancing, as they can take years to recover. In October, the New Jersey refinance rate was 5.82%, which is lower than the previous month's rate. This decrease in rates is a good example of how soon you can refinance a mortgage when the conditions are favorable. However, it's crucial to evaluate whether the potential savings outweigh the closing costs before proceeding with a refinance.

When to Refinance a Mortgage

Refinancing your mortgage in New Jersey can reduce your monthly payments by lowering interest rates. Yet, beware of closing costs that might offset these savings. Understanding when to refinance a mortgage in New Jersey ensures you benefit financially. Now, let's delve into scenarios where refinancing could be a wise decision.

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    Lower Interest Rates

    Refinancing when interest rates are lower can reduce monthly payments and total interest paid. To find the best rates, consult with local lenders and credit unions, as they may offer competitive rates based on your relationship and financial history.

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    Increased Home Value

    Refinancing is beneficial when your home's value rises, as it can increase your home equity. Enhancing curb appeal or renovating can boost value. In New Jersey, the average home value is $537,916, offering potential for better loan terms.

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    Improved Credit Score

    A better credit score can lead to lower interest rates when refinancing. Paying bills on time and reducing debt can improve your score, making refinancing more attractive and potentially saving you money over the loan's life.

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    Shorter Loan Term

    Refinancing to a shorter loan term can save on interest and pay off your mortgage faster. Benefits include building equity quicker and reducing total interest paid, making it a smart choice for those with increased income or financial stability.

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    Switch Loan Type

    Switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage can stabilize payments and protect against rate hikes. A fixed-rate mortgage provides predictable payments, aiding in long-term financial planning and budgeting.

Mortgage Refinancing in New Jersey: Is It Right for You?

Use MoneyGeek's free mortgage refinance calculator to help determine whether refinancing is beneficial for your situation.

Mortgage Refinance Calculator

Make sure refinancing your existing home loan will save you money.

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Today's Mortgage Refinance Rates in New Jersey by Credit Score

Your credit score influences the rates you qualify for in New Jersey. For example, the current average refinance rates in New Jersey for a 30-year fixed rate loan with a loan-to-value ratio of 80% or lower are 6.91% for scores between 680 and 740, and 6.55% for scores above 740. Explore the table below for more details.

Data filtered by:Results filtered by:
Select
Loan Type:15-year Fixed
Select
Credit Score Range:680 - 740
Select
Loan-to-Value Ratio:80% - 95%
5.78%6.10%

Mortgage Refinance Rates in New Jersey by Loan Type

Loan type is another factor that can affect the rates you qualify for in New Jersey. For example, the current average refinance rates in New Jersey for a 30-year fixed rate loan are 6.55%, compared to 7.05% for a 30-year FHA fixed rate. The table below shows average APRs for different loan types in New Jersey.

Data filtered by:Results filtered by:
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Loan Type:10-Year Fixed
5.96%6.11%

FAQ: Today's Mortgage Refinance Rates in New Jersey

With market conditions constantly changing, it's natural for New Jersey homeowners to question how these rates can impact their mortgages and refinance options. We've gathered and addressed the most common questions about refinance rates in New Jersey, providing you with clear and factual information.

Should you refinance your mortgage?

How to get the best mortgage refinance rate?

What are the pros and cons of a mortgage refinance?

How much does it cost to refinance a mortgage?

What is the mortgage refinance rate in Newark?

About Zachary Romeo, CBCA

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Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

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