Not financial advice. Mortgage FV Calculator is a software calculator, not a personal-finance product or advisory service. It computes standard financial functions and displays the results for your convenience. Nothing here constitutes, or is intended to constitute, financial, investment, tax, legal, mortgage, credit, or insurance advice. Always consult a qualified professional before making any financial decision.
NPV of buying a home in New Jersey
Every cash flow of owning a median-priced New Jersey (NJ) home — payments out, rent avoided, equity and sale proceeds in — discounted at 5% and compared with the same money invested elsewhere.
Negative NPV at this rate
At 6.75% on a 30-year loan with 10% down, the net present value works out to −$5,319, an internal rate of return of 4.93%. That means the same cash in a 5% alternative wins on these assumptions. Lower the price, lengthen the hold, or raise the rent you would otherwise pay, and the sign can flip.
Valuation
| NPV at a 5% discount rate | −$5,319 |
|---|---|
| NPV at the Fisher-adjusted real rate (2.44%) | $299,909 |
| IRR (nominal) | 4.93% |
| IRR in real terms | 2.37% |
The real row re-runs the same cash flows at the Fisher-adjusted discount rate — 2.44% once 2.5% inflation is removed from the 5% nominal hurdle. A lower hurdle values distant equity more highly, which is why the real figure is the larger of the two.
The inputs behind it
| Median home price | $520,000 |
|---|---|
| Loan amount | $468,000 |
| Principal & interest | $3,035/mo |
| All-in monthly (PITI + PMI) | $4,341/mo |
| Rent avoided by owning | $2,400/mo |
| Total interest over the term | $624,758 |
| Projected home value at payoff | $1,459,533 |
2.23% effective property tax, $1,500 annual insurance, 3% closing costs, 6% selling costs and 1% annual maintenance. Illustrative averages, not quotes.
What is specific to New Jersey
The highest effective property tax rate in the US. On a $520k home that is roughly $970 a month before principal and interest.
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NPV in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
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- Iowa
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- Kentucky
- Louisiana
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- Massachusetts
- Michigan
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- New Hampshire
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- New York
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