Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Minnesota and New Jersey. Updated for 2026.
Minnesota wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $335K and lower overall costs, Minnesota offers meaningful savings compared to New Jersey. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Minnesota saves you approximately $1,708/month ($20,496/year) compared to New Jersey, based on median home prices with identical loan terms.
Minnesota offers meaningfully lower home prices than New Jersey, with median prices running 34% less ($170K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of New Jersey may find Minnesota far more accessible, particularly when combined with local down payment assistance programs.
Property taxes are dramatically different: Minnesota charges 1.12% while New Jersey charges 2.47%, a gap of 1.35 percentage points. On the respective median homes, this means New Jersey homeowners pay roughly $12,474 per year in property taxes versus $3,752 in Minnesota. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.
Insurance costs favor New Jersey at $1,500/year versus $2,100/year in Minnesota, a difference of $600 annually. While not the largest cost factor, this adds up to over $6K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.
Closing costs are a one-time but significant expense. New Jersey averages $10K in closing costs (2% of purchase price) while Minnesota averages $5K (1.4%). Much of New Jersey's higher costs come from its 1% transfer tax, which adds $5K to the median home purchase. Budget for these upfront costs — they affect how much cash you need on hand at closing.
Both states offer down payment assistance for first-time buyers. Minnesota's Minnesota Housing Start Up provides Up to $18,000 deferred loan, while New Jersey's NJHMFA DPA Program offers Up to $15,000 forgivable. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: Minnesota homes cost $170K less than New Jersey on average. That translates to roughly $1,708 less per month in total housing costs if you choose Minnesota. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.