🏡 How much house can you afford?

Saturday,
March 25, 2023

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The week in review

• The Fed’s quarter-point hike was unanimous and the terminal rate projection remained unchanged at 5.1%, suggesting the hiking cycle may be coming to an end. In Fed Chairman Jerome Powell’s speech, he underscored the Fed’s commitment to quelling inflation, including reducing the size of its balance sheet.

• Treasury Secretary Janet Yellen previously said only deposits held at systemically important banks would be insured over the $250,000 FDIC limit. But her latest statement underscored the government’s commitment to protecting smaller regional banks as well.

• GameStop saw its shares soar nearly 50% after a positive earnings surprise. With further plans to cut costs, the retailer reported a profit of $48.2 million, or $0.16 cents per share, for Q4 of 2022.

For more economic news, visit On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Mortgage lenders use a few different calculations when determining how much house you can afford.

There are several calculations you can use to get a benchmark of how much house you can afford.

Remember, all of these methods are just benchmarks to help you decide how much you can afford. You’ll also need to consider your monthly budget and other financial goals. Using a home affordability calculator can help you refine and customize your estimate so you can see how different factors influence the price of the home you can afford.

This week’s top stories

Fed raises rates 25 bps and markets close lower, but long-term implications are hazy.
The quarter-point hike was expected, mostly, but Chairman Powell is walking a bit of a tightrope. SoFi’s Head of Investment Strategy weighs in.
Read more >>

Data suggests money just might buy happiness after all.
New research shows higher incomes mean happier people — and there’s no apparent income threshold that diminishes the growth rate of improved emotional well-being.
Read more >>

Disney+ (DIS) might add another plus (or two) to its subscription price.
Disney recently raised the price of its ad-supported tier and retained 94% of its users – which has some wondering if it’s still underpriced.
Read more >>

Deep dives from SoFi Learn

What is the federal funds rate? And why are federal interest rate decisions so important?
The Federal Reserve uses its interest rate policy to set borrowing costs and to manage the economy. See how changes to this rate affect your wallet.
Read more >>

The deadline for filing 2022 taxes is Tuesday April 18 — or October 16 if you requested an extension.
While most people will receive their refund in 21 days, there are several factors to consider. Learn about the tax refund process and how to track the status of your refund.
Read more >>

Upfront costs for your new home may be steeper than you think.
Though the down payment is widely acknowledged as the first major step in buying a home, closing costs should be a close second. Here’s what you should know and how to prepare.
Read more >>

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Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp. or an affiliate, NMLS # 696891. (www.nmlsconsumeraccess.org)

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