Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between New Jersey and Texas. Updated for 2026.
Texas wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $310K and lower overall costs, Texas 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 Texas saves you approximately $1,566/month ($18,792/year) compared to New Jersey, based on median home prices with identical loan terms.
Texas offers meaningfully lower home prices than New Jersey, with median prices running 39% less ($195K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of New Jersey may find Texas far more accessible, particularly when combined with local down payment assistance programs.
Texas has a moderate property tax advantage at 1.8% versus New Jersey's 2.47%. While the rate gap of 0.67% may seem small, it translates to an annual difference of approximately $6,894 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $55K in savings.
Homeowners insurance is significantly cheaper in New Jersey ($1,500/year) compared to Texas ($3,800/year). That's an extra $2,300 per year — or $192/month — eating into your budget in Texas. Texas's high insurance costs are often driven by severe weather risks (hurricanes, tornadoes, or wildfires), which also affect availability of coverage.
Closing costs are a one-time but significant expense. New Jersey averages $10K in closing costs (2% of purchase price) while Texas averages $5K (1.7%). 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. New Jersey's NJHMFA DPA Program provides Up to $15,000 forgivable, while Texas's TDHCA My First Texas Home offers Up to 5% DPA grant. 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: Texas homes cost $195K less than New Jersey on average. That translates to roughly $1,566 less per month in total housing costs if you choose Texas. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.