Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between New Jersey and Virginia. Updated for 2026.
Virginia wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $400K and lower overall costs, Virginia 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 Virginia saves you approximately $1,387/month ($16,644/year) compared to New Jersey, based on median home prices with identical loan terms.
Virginia offers meaningfully lower home prices than New Jersey, with median prices running 21% less ($105K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of New Jersey may find Virginia far more accessible, particularly when combined with local down payment assistance programs.
Property taxes are dramatically different: Virginia charges 0.82% while New Jersey charges 2.47%, a gap of 1.65 percentage points. On the respective median homes, this means New Jersey homeowners pay roughly $12,474 per year in property taxes versus $3,280 in Virginia. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.
Closing costs are a one-time but significant expense. New Jersey averages $10K in closing costs (2% of purchase price) while Virginia averages $6K (1.5%). 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 Virginia's Virginia Housing DPA Grant offers Up to 2.5% 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: property taxes are the defining difference here. New Jersey's 2.47% rate versus Virginia's 0.82% means Virginia homeowners save approximately $9,194 every year on taxes alone. Over a 30-year mortgage, that difference compounds into tens of thousands of dollars — making it the most important cost factor in this comparison.