SoFi

The U.S. Department of Veterans Affairs (VA) offers a mortgage financing program known as VA loans. It’s designed to help veterans, active-duty service members, and surviving spouses get financing for a home loan.

When applying for any mortgage, there are additional costs on top of the purchase price of the property. These costs can be complex to figure out for first-time homebuyers, so there are calculators available to help.

A loan closing costs calculator is used to estimate the closing expenses associated with a mortgage loan such as a VA loan. These costs can include appraisal fees, loan origination fees, title and homeowners insurance, recording fees, and property taxes. The calculator takes into account the amount of the loan, the term of the loan, the interest rate, and the purchase price.

This guide will help you understand these costs and calculate what these expenses might look like for your loan.

Why Use a VA Loan Closing Costs Calculator Table?

A VA loan closing costs calculator is a useful tool for anyone looking into applying for a VA loan. Because, yes, you do pay closing costs with a VA loan.

Although calculators only provide an estimate and not the final closing costs, you can enter the property and loan details and immediately get an idea about the total closing expenses you will be paying if you go through with the loan.

This helps with budgeting, comparing the cost of living in different locations, looking at different properties and loan options, and negotiation. It also helps educate borrowers about the loan process.

💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.

How to Calculate Your VA Loan Closing Costs

Whether you are a first-time homebuyer or have been through the process before, it can be a good idea to acquaint yourself in advance with the fees you’ll pay when you get a home mortgage. The following are some of the common costs associated with VA loans:

•   VA funding fee: This is a required fee calculated as a percentage of the loan amount. The amount of this fee depends on factors such as the down payment amount and whether you’ve used a VA loan before. Worth noting: This is the one fee that you may be able to roll into the loan vs. pay separately.

Also, some people may be exempt from paying a funding fee, such as those who receive compensation for a service-related disability, among other scenarios.

•   Loan origination fee: This is a fee for processing the loan application (it’s charged by the lender, not the VA) and is generally a percentage of the loan amount. With a VA loan, it is typically 1% of the loan value.

•   Discount points: These are upfront payments that can be made to reduce the loan’s interest rate. Each percent of the loan amount is equal to one point.

•   Credit report fee: This is a fee for obtaining a credit report, which is used to determine the borrower’s creditworthiness. Having good credit is just one important part of qualifying for a home loan.

•   Appraisal fee: There is a fee for hiring an appraiser, who determines the value of the property being purchased.

•   Homeowners insurance: This is to secure the property against damage and losses. Borrowers generally pay the first year up front.

•   Real estate taxes: If there are any unpaid property taxes, some or all may need to be paid at closing.

•   State and local taxes: Some states or cities may impose taxes or property transfer fees.

•   Title insurance: Title insurance protects against issues with the property’s title and is generally required by lenders.

•   Recording fee: This fee covers the cost of recording the mortgage and any related documents with the government.

Worth noting: With VA loans, you can save big because private mortgage insurance (PMI) isn’t required for those putting down less than 20%, as it might be with other kinds of home loans.

💡 Quick Tip: A VA loan can make home buying simple for qualified borrowers. Because the VA guarantees a portion of the loan, you could skip a down payment. Plus, you could qualify for lower interest rates, enjoy lower closing costs, and even bypass mortgage insurance.†

2026 VA Loan Funding Fee Calculator Table

Now that you understand the different fees that may be assessed when you take out a mortgage, take a closer look at what some of these fees look like for a typical VA loan. (Rates may differ for other types of VA loans, such as those for manufactured homes or that are part of the Native American Direct Loan program.)

Down Payment (%)	Funding Fee (1st Time)	Subsequent Funding Fee
Less than 5%	2.15%	3.30%
5% or more	1.50%	1.50%
10% or more	1.25%	1.25%

Examples of VA Loan Closing Costs Calculations

Below are a few examples of closing costs for a VA loan in 2026:

Example 1: First-time homebuyer with no down payment

Loan amount: $250,000
Down payment: 0% (no down payment)
Funding fee: 2.15% (first-time user)
Other closing costs: $5,000

Closing costs calculation:

Funding fee: $250,000 x 2.15% (0.0215) = $5,375
Other closing costs: $5,000
Total closing costs: $5,375 (funding fee) + $5,000 (other closing costs) = $10,375

Example 2: First-time homebuyer with a 5% down payment

Loan amount: $300,000
Down payment: 5% ($15,000)
Funding fee: 1.50% (first-time user)
Other closing costs: $6,500

Closing costs calculation:

Funding fee: ($300,000 – $15,000) x 1.50% (0.015) = $4,275
Other closing costs: $6,500
Total closing costs: $4,275 (funding fee) + $6,500 (other closing costs) = $10,775

Example 3: Subsequent homebuyer with a 15% down payment

Loan amount: $400,000
Down payment: 15% ($60,000)
Funding fee: 1.25% (subsequent user)
Other closing costs: $7,000

Closing costs calculation:

Funding fee: ($400,000 – $60,000) x 1.25% (0.0125) = $4,250
Other closing costs: $7,000
Total closing costs: $4,250 (funding fee) + $7,000 (other closing costs) = $11,250

Recommended: The Cost of Living in California

Reasons to Calculate Your VA Loan Closing Costs First

Calculating VA loan closing costs is beneficial for a few reasons:

1.    Financial planning: Calculating the closing costs for a VA loan up front helps with planning finances and budgeting to make sure you have enough money to afford purchasing a home. It prevents unforeseen expenses and reduces stress throughout the buying process.

2.    Analyzing affordability: Knowing the closing costs can help you determine whether you can afford a property.

3.    Comparison shopping: Calculating closing expenses also helps with comparing various home mortgage loans so you can choose the terms that work best for you and potentially save money. While VA loans are one option, there are many types of mortgage loan choices that may be a good fit depending on your individual circumstances.

4.    Negotiation: Understanding closing costs provides a starting point for negotiation. Certain fees or terms may be negotiable, and having this knowledge provides you, the borrower, with the information needed to get the best deal.

5.    Avoiding surprises: Planning ahead can help prevent unforeseen costs that may arise during the closing process. It also allows you to compare the estimate to the final closing costs to make sure they are all accurate.

Recommended: How Long Does It Take to Close on a House?

Tips on How to Save on Your VA Loan Closing Costs

Here are some tips for how to save on VA loan closing costs:

•   Shop around for lenders. Compare closing cost estimates from various lenders by requesting quotations from them all. It’s important to shop around for a mortgage and look into different options to find the best rates and terms.

•   Negotiate with the lender. Don’t hesitate to ask for lower fees and discuss terms. Eligible borrowers with good credit may be able to negotiate loan conditions.

•   Consider seller concessions. In some cases, it may be possible to persuade the seller of the home to cover some of the closing costs. Consult with the real estate agent during the negotiation process about this possibility to reduce costs.

•   Utilize VA loan programs and benefits. Take advantage of the benefits offered by the VA loan program. For instance, the VA funding fee can be rolled into the loan amount, and the VA has restrictions on fees which can help keep closing costs down.

•   Consider rate options. Evaluate different interest rate options and the impact they have on closing costs. For instance, a higher interest rate may offer lender credits that can be applied to closing costs. If one intends to live in the house for a long time, this may be a good option.

•   Read the Closing Disclosure (CD) carefully. The final closing costs are listed in the Closing Disclosure document. It’s important to carefully review this document to make sure there are no errors or unforeseen closing costs.

The Takeaway

VA loan closing costs include the financing fee, credit report fees, appraisal fees, title insurance, and other expenses associated with obtaining a VA loan. It’s important for borrowers to calculate their estimated closing costs in advance to compare loan options, negotiate fees, and prepare themselves financially for buying a home.

It’s also wise to consider a variety of loan options, from the VA or not, to make sure you are getting the right fit for your financial needs.

SoFi offers VA loans with competitive interest rates, no private mortgage insurance, and down payments as low as 0%. Eligible service members, veterans, and survivors may use the benefit multiple times.

Our Mortgage Loan Officers are ready to guide you through the process step by step.

FAQ

What is the VA funding fee for 2026?

The VA funding fees for 2026 are dependent on your down payment amount. For first use, if your down payment is less than 5%, the VA funding fee is 2.15%, after which it shifts to 3.30%. If your down payment is 5% or more, the rate is 1.50%, and if your down payment is 10% or more, the rate is 1.25%.

What percentage of closing costs can be included in a VA loan?

There is no specific limit on the percentage of closing costs that can be included in the loan amount, but the VA restricts the seller’s concessions. The VA has a 4% rule, which states that the total allowable closing costs and fees paid by the seller cannot exceed 4% of the home’s value.

What is an example of a VA funding fee?

The VA funding fee is a one-time fee paid by borrowers using a VA loan, and the amount is calculated based on factors such as the loan amount, down payment, and the borrower’s service category. For example, a first-time borrower with a $300,000 loan amount and no down payment may have a funding fee of 2.15%, resulting in a fee of $6,450.

---

Photo credit: iStock/Ole Schwander

^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOHL-Q226-167

Read more

A home equity line of credit (HELOC) closing is typically less complicated than closing on a primary mortgage. The transaction is between the homeowner and lender, although the lender still must verify the homeowner’s finances and the property’s value.

The process usually takes about two to six weeks from application to closing. The timeline depends on the lender, the borrower’s documentation, the property, and whether the lender needs additional underwriting information.

This guide explains the steps between application and funding, the documents a borrower may need, common closing costs, and ways to avoid delays.

HELOC Closing Timeline

The exact order can vary by lender, but most HELOC closings follow these stages:

Stage	What happens
Application	The borrower submits financial, property, and personal information.
Documentation	The lender collects documents that support the application.
Underwriting	The lender reviews income, credit, debts, home equity, and repayment ability.
Valuation	The lender confirms the home’s current value through an appraisal or another valuation method.
Title and lien review	The lender checks ownership, existing mortgages, liens, and other title issues.
Disclosures	The lender provides documents that explain the HELOC’s terms, costs, and payment requirements.
Signing	The borrower reviews and signs the final loan documents.
Rescission period	When applicable, the borrower has three business days to cancel the transaction.
Funding	The lender makes the credit line available after the required waiting period ends.

Preparing for HELOC Closing

For most borrowers, getting a HELOC takes about two to six weeks from application to closing. Borrowers can help keep the process on schedule by preparing documents early and responding promptly to lender requests.

Completing the Application

After researching how a HELOC works and comparing lender terms, a borrower can apply online or in person.

The application generally asks for information about:

•   Income and employment

•   Monthly debt payments

•   Credit history

•   Existing mortgage balance

•   Property address and ownership

•   Estimated home value

•   The amount of credit requested

The lender uses this information to evaluate eligibility, available equity, and the borrower’s ability to repay the line of credit.

Submitting Documents for Review

The lender may request documents at several points. The documents needed for the application and underwriting are usually different from the documents signed at closing.

Documents commonly requested during application or underwriting include:</p>

•   Government-issued photo ID, such as a driver’s license or passport

•   Social Security number

•   Recent pay stubs

•   W-2 forms or tax returns

•   Bank and investment account statements

•   Information about existing mortgages and other debts

•   Homeowners insurance declarations page

•   Property tax information

•   Divorce, separation, alimony, or child-support records, when applicable

•   Proof of other income, such as rental income or retirement benefits

Self-employed borrowers may need to provide business tax returns, profit-and-loss statements, or additional bank records. Requirements vary by lender and borrower.

A lender may ask for updated statements or documents if the review takes several weeks. Borrowers should send complete, legible files and explain any unusual deposits, employment changes, or gaps in income.

Going Through Underwriting

After receiving the application and supporting documents, an underwriter reviews the borrower’s financial information. The review may consider:

•   Income and employment stability

•   Credit history and credit score

•   Existing debt payments

•   Available home equity

•   Current mortgage balance

•   Property value

•   The borrower’s projected ability to make HELOC payments

The underwriter may contact the borrower with follow-up questions or request more documentation. A HELOC monthly payment calculator can estimate payments based on the amount borrowed, interest rate, and repayment term.

Borrowers should avoid major purchases, new credit accounts, and other changes that could affect their finances until the HELOC closes. They should also tell the lender about significant changes to employment, income, debt, or property ownership.

Confirming the Home’s Value

A lender usually verifies the property’s value before approving a HELOC. The lender may use:

•   A full-home appraisal

•   A drive-by appraisal that evaluates the exterior and surrounding market

•   An automated valuation tool

The valuation method depends on the amount requested, the property, the lender’s policies, and other risk factors. The lender typically orders the valuation and may charge the borrower for it.

Reviewing Title, Liens, and Insurance

The lender may order a title search to verify ownership and identify existing mortgages, tax liens, judgment liens, or other claims against the property. Title insurance may also be required.

The borrower will generally need homeowners insurance that meets the lender’s requirements. An insurance lapse or insufficient coverage can delay approval or closing.

Preparing the Lending Agreement

After approval, the lender finalizes the HELOC terms and prepares the closing package. The agreement should explain:

•   The approved credit limit

•   The draw period, when the borrower can access funds

•   The repayment period

•   The interest rate and whether it can change

•   How payments are calculated

•   Minimum payment requirements

•   Fees and possible penalties

•   Conditions for converting part of the balance to a fixed-rate loan, if available

Borrowers should review the agreement before closing and ask about any term they do not understand.

Documents Signed at a HELOC Closing

The lender will provide a closing checklist and identify the documents that apply to the transaction. Depending on the lender, property, and state, the closing package may include:

•   A mortgage or deed of trust securing the HELOC with the home

•   A HELOC agreement

•   A promissory note

•   A Truth in Lending disclosure

•   A closing disclosure or other fee summary

•   A notice of the right to cancel, when applicable

•   A payment authorization or account-access form

•   Title documents

•   Insurance documents

•   State-specific disclosures

The borrower may also need to bring a government-issued photo ID and proof of insurance. Any co-borrowers generally must sign the required documents. A power of attorney may be necessary if an approved signer cannot attend, subject to the lender’s approval.

The lender may provide some documents before the appointment. Reviewing them in advance gives the borrower time to ask questions and identify errors.

HELOC Closing Costs

HELOC closing costs are fees connected with opening the line of credit. They are often lower than the costs of closing a primary mortgage, a cash-out refinance, or a home equity loan, but the total varies by lender and transaction.

Common Fees

A HELOC may include:

•   Origination fee: A lender charge for processing and opening the account

•   Credit-report fee: A charge for obtaining credit information

•   Appraisal fee: The cost of valuing the property

•   Title search fee: The cost of checking ownership and liens

•   Title insurance: Coverage against certain title problems, if required

•   Recording fee: A government charge for recording the lien

•   Notary or filing fees: Charges for document execution and filing

•   Annual fee: A recurring fee charged by some lenders

•   Early-termination fee: A charge that may apply if the borrower closes the HELOC within a specified period

Typical fee estimates include:

HELOC Fee	Possible amount
Origination fee	0.5%–1% of the loan amount
Credit report fee	$30–$50
Annual fee	$5–$250
Appraisal fee	$300–$500
Filing or notary fees	$20–$100
Title search fee	$75–$250

These amounts are examples, not standard charges. Actual costs appear in the lender’s disclosures and can vary by property, state, lender, and loan amount.

Comparing and Paying the Costs

Some lenders cover part or all of the closing costs. Others may add the fees to the balance or waive them in exchange for different pricing or account terms. Adding fees to the balance increases the amount that can accrue interest.

Before signing, borrowers should compare:

•   Each lender fee

•   Third-party charges

•   Annual or inactivity fees

•   Early termination terms

•   Whether waived fees must be repaid if the HELOC closes early

•   The total amount due at closing

The final disclosure should show the fees, credits, and amount due. Borrowers should ask the lender about any charge that differs from the earlier estimate.

The HELOC Closing Meeting

The lender arranges the closing time and location. The meeting may take place in person, online, or through a mobile notary, depending on the lender and state.

At the meeting, the borrower generally:

1.   Confirms personal and property information.

2.   Reviews the interest rate, credit limit, draw period, repayment period, and fees.

3.   Verifies the payment terms.

4.   Signs the HELOC agreement, note, mortgage or deed of trust, and required disclosures.

5.   Pays any closing costs due at signing.

6.   Receives instructions for accessing the line of credit.

The borrower should check the spelling of names, the property address, loan amount, fees, and payment terms before signing. A co-borrower must sign documents that apply to that person.

An attorney is usually not required at a HELOC closing, although a borrower may ask an attorney or financial advisor to review the agreement beforehand. An advisor can also help explain how HELOCs can affect your taxes.

The Right of Rescission and Funding

When a HELOC is secured by the borrower’s primary residence, federal law may provide a three-business-day right of rescission. This gives the borrower time to cancel certain credit transactions after the required disclosures and closing documents are delivered. The rule does not apply universally to every property or loan transaction. Vacation homes, investment properties, refinances, and other transactions may have different requirements.

The three-business-day period generally excludes:

•   The day the borrower receives the right-to-cancel notice and applicable disclosures

•   Sundays

•   Federal legal holidays

It counts business days rather than calendar days. The lender’s notice and closing documents should state the applicable deadline. Borrowers should follow those documents and contact the lender immediately if they want to cancel.

When the rescission period applies, the lender generally cannot make the HELOC funds available until the period ends. After that period, the lender completes funding and provides access according to the account agreement. The timing can vary, so borrowers should ask when they can first draw funds.

Post-Closing Considerations

After funding, the borrower can access available credit during the draw period, which often lasts 10 years. The borrower pays interest only on the amount drawn, subject to the terms of the agreement.

During the draw period, the borrower may have interest-only or minimum payment options. Paying more than the minimum reduces the balance and can make future payments more manageable.

Most HELOCs have variable interest rates. As the rate changes, the required payment may also change. In the HELOC vs. home equity loan comparison, this is a key difference because home equity loans commonly provide a lump sum with a fixed rate.

Depending on the lender, the borrower may be able to convert all or part of the HELOC balance to a fixed-rate loan. The agreement should explain whether that option exists and what conditions apply.

After closing, borrowers should:

•   Confirm that the credit line is active.

•   Save the signed agreement and disclosures.

•   Set up payment reminders or automatic payments.

•   Track the available credit and outstanding balance.

•   Review rate and payment changes.

•   Keep homeowners insurance active.

•   Contact the lender before making a large draw if payment terms are unclear.

•   Watch for annual fees or other account charges.

Recommended: Home Equity Conversion Mortgage vs. HELOC

HELOC and Home Equity Loan Closings

A HELOC and a home equity loan both use home equity as collateral, but the borrower receives credit differently.

Feature	HELOC	Home Equity Loan
Access to funds	Revolving credit line	Lump-sum loan
Interest rate	Often variable	Often fixed
Borrowing	Draws can occur during the draw period	Funds are generally received at closing
Payments	May change as the rate or balance changes	Usually fixed payments
Closing process	Includes a credit-line agreement and access terms	Includes a promissory note and fixed loan terms

Both products may require an appraisal or other valuation, a title search, homeowners insurance, financial documentation, and a lien against the property. The lender’s disclosures determine the exact costs and requirements.

Common Delays and How to Avoid Them

Several issues can postpone approval, signing, or funding.

Potential issue	Borrower action	When it may occur
Incomplete income or debt documents	Submit every requested page, and explain unusual deposits or employment changes.	Before signing
Credit or financial changes	Avoid new debt, and tell the lender about changes in income, employment, or obligations.	Before signing
Appraisal or valuation problems	Provide property access promptly, and ask whether another valuation method is available.	Before signing
Title or lien problems	Review ownership records, and work with the lender to resolve unreleased liens or incorrect information.	Before signing
Insurance gaps	Provide a current declarations page, and keep coverage active.	Before signing
Underwriting follow-up	Respond quickly, and send updated statements when requested.	Before signing
Errors in closing documents	Review names, property details, amounts, interest rates, and fees before signing.	At signing
Missing signer or identification	Confirm who must attend and bring valid identification.	At signing
Unclear funding timing	Ask when the rescission period ends and when the credit line becomes available.	After signing
Unpaid closing costs	Confirm the amount due and approved payment method before the appointment.	At signing

A lender’s closing checklist can help borrowers track open items. Borrowers should contact the lender before closing to confirm that the file is complete, the appraisal and title review are finished, and the signing appointment is confirmed.

The Takeaway

A HELOC closing usually includes an application, document collection, underwriting, property valuation, title and lien review, disclosures, signing, and funding. The process can take two to six weeks, although documentation issues, appraisal delays, title problems, insurance gaps, or underwriting questions can extend the timeline.

Borrowers should review the HELOC agreement, closing disclosures, interest-rate terms, fees, payment schedule, and rescission notice before signing. When a primary residence secures the line, access to funds may not begin until the applicable three-business-day waiting period ends.

Homeowners considering a lump-sum loan can also compare the HELOC process with a different type of home equity financing and use calculating home equity as a starting point.

SoFi now offers flexible HELOC options to turn your home equity into cash. Access up to 85% of your home equity, or $750,000, to finance home improvements or consolidate debt. Competitive interest rates and repayment terms up to 20 years could result in lower monthly payments versus other loans. And the online application process is quick and convenient.

Unlock your home’s value with a home equity line of credit from SoFi.

FAQ

Can a lender request more documents after the HELOC application?

Yes, an underwriter may request updated pay stubs, bank statements, tax records, insurance documents, or explanations for changes in income, debt, or deposits. Sending complete documents quickly can help prevent delays.

Does a HELOC require homeowners insurance?

Lenders generally require homeowners insurance that meets their underwriting standards because the home secures the line of credit. The lender may request proof of coverage before closing and may require the borrower to maintain the policy afterward.

Can a HELOC be secured by a vacation or investment property?

Some lenders may allow a HELOC on a property other than a primary residence, but eligibility and legal requirements vary. The three-business-day right of rescission may not apply in the same way to every property type. The lender’s disclosures should explain the applicable rules.

Should borrowers compare a HELOC with a home equity loan?

Yes, a HELOC may suit a borrower who needs access to funds over time and can manage a variable rate. A home equity loan may suit a borrower who wants a lump sum and predictable fixed payments. The right choice depends on the amount needed, intended use, rate, fees, and repayment ability.

---

Photo credit: iStock/andresr

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

SOHE-Q326-070

Read more

The short answer is that a 2024 legal settlement changed how agents get paid, and buyers are now more likely to pay their own agent directly. Planning to buy or sell a home in the near future? You’ll want to read up so you don’t overpay.

How Do Real Estate Agents Get Paid?

For agents — on the seller’s or buyer’s side — it’s long been business as usual to receive compensation via commission, as opposed to a set fee. Sellers typically paid commissions of 5% to 6% of a house’s price after what is known as the “closing” of a home they sold, and that money was split between the seller’s and buyer’s agents, plus other pros involved in the transaction. The higher the sales price, the more agents got paid.

But in 2024, the National Association of Realtors® (NAR), a trade association, and a number of real estate brokerages, settled a group of lawsuits. The settlements totaled nearly $2 billion. NAR paid $418 million in damages. The payout resulted from a legal filing contending that the real estate commission structure violated antitrust laws. NAR agents, it claimed, were receiving inflated commissions.

The lawsuits brought changes to the way homebuyers and sellers work with real estate agents on home purchases — and the way those agents are compensated.

Agents and Buyers or Sellers

In the lawsuit, homesellers from Missouri alleged that commission rates had been shared secretly and inappropriately among those who stood to profit. The sellers stated that the exchange of information had resulted in a lack of transparency about who homesellers were responsible for paying, and how much. They also said that this led to agents’ fees being inflated.

The lawsuits sparked NAR to revise protocols for the way homebuyers and sellers work with real estate agents when a home goes up for sale. That reboot may significantly affect those transactions and agent commissions going forward. The changes were expected to save buyers and sellers money, though whether they have is still debated.

How will a Realtor you hire get paid in this new world? If you plan to buy or sell a home, it’s important to ask them, and to understand the details of compensation before entering into an agreement. Sellers are likely to continue paying their agents a commission for selling their house. Buyers who want to work with a buyer’s agent may have to pay for that agent’s assistance themselves, but only if the agent won’t receive any other commission.

Let’s take a closer look at how the changes affect costs for both homebuyers and sellers, beginning with examples of Realtors getting paid.

Real Estate Commission: Before the Settlement

We’ll start with how it used to work. Say a home sold for $500,000, with the commission being the formerly typical 6%:

Total commission fee: $500,000 × 6% = $30,000

The commission was generally split evenly between the two sides:

•   Listing agent side = $15,000

•   Buyer’s agent side = $15,000

Real estate agents also shared commissions with brokers who represented them. (A broker is an agent who has an additional license to supervise other agents.) The broker’s fee might have been 1% of the sales price, or $5,000, subtracted from the total to leave the seller’s agent with a commission of $10,000.

•   Listing agent = $10,000 (2% of sales price)

•   Listing agent broker = $5,000 (1% of sales price)

•   Buyer agent = $10,000 (2% of sales price)

•   Buyer agent broker = $5,000 (1% of sales price)

Real Estate Commission: A Changing Approach

For a long time, agent commissions were more or less built into a home’s asking price. The seller’s agent would offer a percentage of the total commission amount to the buyer’s agent, normally mentioning it in the home listing’s fine print on the multiple listing service (MLS). After closing, the seller’s agent would disburse the fee. That changed a little in 2024, when the court prohibited sellers’ agents from stating the buyers’ agent’s percentage share on the MLS.

The MLS comprises databases of homes for sale that only Realtors, agents, brokers, and other real estate industry people can access — and that is what caused concerns about transparency.

Now, conversations about commissions must take place outside the MLS. Sellers may offer to pay commissions to buyer’s agents, but an agent for the homebuyer may also request a percentage of the home price or a flat fee from their own client. A buyer using an agent is required to have a representation agreement with the agent, defining compensation, before touring homes.

Listing agreements now must specify the amount the seller will pay to the listing agent, as well as what the seller will pay to a buyer’s agent. With these revisions, sellers have some newfound control. They can offer equal commissions to both sides, or different amounts. A seller may decide not to offer a buyer’s agent a commission, leaving the buyer responsible for paying for their services.

An Agent’s Responsibilities

To earn a commission, real estate agents often take on a lot of tasks and responsibilities. Their duties include:

•   Providing market data and helping to set a listing price

•   Placing ads and putting up yard signs

•   Photographing the property

•   Listing the property in the MLS listings database

•   Scheduling showings

•   Placing lock boxes

•   Guiding first-time homebuyers

•   Smoothing over difficult relationships

•   Navigating offers and counteroffers

•   Negotiating home contracts

Recommended: How to Find a Real Estate Agent

The State of Agent Commissions

Earnings vary widely. How much agents make in a year depends on their market, their sales volume, and the rates they negotiate.

Early surveys suggested commission rates were falling, but later research has been less conclusive. A 2026 Consumer Federation of America report found that only 7% of nonprofit counselors who advise first-time homebuyers surveyed said commissions had decreased compared with a year earlier, while 36% disagreed that rates had fallen. That’s consistent with a Federal Reserve analysis of about 45 million home sales, which found that similar rules adopted earlier in some states had no material effect on advertised commission rates.

Sellers’ agents may continue to receive their commissions, negotiated with the seller, who pays the real estate agent commission fee out of the payment they receive when the home sale closes. Since buyers’ agents are no longer entitled to payment from this money, homebuyers may need to negotiate with and pay their agents. This could in some cases make buying a home even more costly.

How Does It All Affect the Bottom Line?

If the sales price of a home is $500,000 and the sellers owe $250,000 on their mortgage, then the commission and other fees would be subtracted from the $250,000 that remains after the sellers pay off their mortgage.

To keep it simple, let’s say the total commission negotiated is 5%:

Total seller-paid commission fee: $500,000 × 5% = $25,000

•   Listing agent side = $25,000

•   Buyer’s agent side = negotiated separately

Whether the buyer’s agent is paid out of that $25,000, by the seller on top of it, or by the buyer directly now varies by transaction.

Can a buyer come out ahead in this changed compensation structure? Maybe. A buyer’s extra costs could be compensated by lower listing prices on homes for sale. But that remains to be seen.

Can You Negotiate Who Pays the Real Estate Agent?

Yes. Realtor fees on both sides are negotiable. These ideas may help you reduce your fee if you are selling your home:

•   Barter. Do you have a photographer friend who can take photos of your home? Offer up skills in exchange for a lower commission.

•   Hire a newer agent. A newer agent may accept a lower commission to gain experience.

•   Pay attention to market conditions. If homes aren’t moving in your market, you may be able to negotiate a lower commission.

Take time to interview potential Realtors using these suggested questions. Be sure the commission stated in the listing agreement matches what you’ve agreed on before you sign.

How Should a Buyer Agent’s Commission Be Set?

If you are in the market for a new home, you may still decide to seek a buyer’s agent to guide you through the process and represent you in closing. Their efforts may be well worth their fee.

Look for an agent with a strong network — they may hear about quiet “whisper listings” before anyone else. Once you’ve chosen someone, be sure to discuss a fee structure and payment process with them before you sign on.

Buyer’s agents may charge hourly, a flat fee, or a percentage, and in many markets sellers still offer to cover it.

In lieu of a commission, buyers’ real estate agents might charge fees for showing homes, shepherding clients through making offers, signing contracts, negotiating inspections, and more. For buyers, this would add to a home’s cost.

Of course, if agent commission fees have all along been a component of a property’s price, then buyers were already paying them. But in that scenario, buyers could cover those baked-in costs with their home mortgage loan. New fees paid by a buyer to the agent would come from the buyer’s pocket.

This switcheroo may lead some homebuyers to think about shopping for a home without an agent’s help, or buying a house for sale by owner. If you go this route, be aware that you’ll need to spend significant time researching potential properties, scheduling viewings, and self-advocating, especially if you are attempting to buy in a seller’s market.

When Do Sellers’ Agents Receive Their Commission?

Sellers’ agents usually receive their commission after the home mortgage loan has been funded and the sale closes. Their brokerage receives a wire with the funds, and the agent’s portion of the commission is released to them shortly thereafter.

What Is Dual Agency?

Dual agency is when a real estate agent represents both the seller and the buyer in a transaction. It must be disclosed to both parties because real estate agents are bound by a fiduciary duty to serve their clients. An agent who represents both seller and buyer may earn more commission.

Buyers faced with having to pay a buyer’s agent out of pocket might choose to look at properties on their own. When they find a home they would like to buy, they may decide to make an offer directly with the listing agent. In this scenario, the listing agent becomes a dual agent. They may accept a lower fee, since they are also getting a commission paid by the seller. It might appear to everyone to streamline the process. It also creates a possible conflict of interest.

Many in the industry discourage buyers and sellers from entering a dual-agency sale with an agent. It’s also worth noting that the practice is illegal in several states.

Is Paying a Real Estate Commission Worth It for the Seller?

Hiring an agent is not required. And for many sellers, it’s painful to look at the closing documents and see how much of the sales price goes to different agents, title insurance companies, concessions, and so forth. But a lot of sellers find it worthwhile having someone to guide them through the complexities of real estate law, and sensitive issues that the sale of a home creates.

Recommended: How to Buy a House Without a Realtor

Alternatives to a Percentage-Based Commission

There are real estate brokerages that advertise services for a flat fee. Flat fees are typically much lower than a percentage-based commission. They usually don’t offer to schedule showings or manage the listing in any other way.

The Takeaway

Working with a real estate agent when you’re a buyer requires asking a lot of questions and understanding the terms of compensation before you sign on for representation. You might be tempted to go it alone, and it can be done. But having an agent on your side to help you negotiate may, in many cases, help you land a better deal.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Do sellers pay Realtor fees?

Yes, sellers typically pay their listing agent a commission that’s negotiated in the listing agreement and deducted from the sale proceeds at closing. Since the 2024 rule changes, they’re no longer expected to also offer a commission to the buyer’s agent, though many still do. When they don’t, the buyer may be responsible for paying their own agent.

How long have the new rules been in place?

The settlement received final approval in November 2024. The two core changes — no commission offers listed on the MLS, and a signed agreement before a buyer’s agent shows homes — took effect August 17, 2024.

How much does a Realtor make in Illinois?

According to ZipRecruiter.com, the average pay for a real estate agent in Illinois is $83,135. Salaries can range from as low as $58,100 up to $96,900 per year.

---

Photo credit: iStock/RyanJLane

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

SOHL-Q326-087

Read more

Buying a house can be the single largest financial move you’ll ever make. What’s more, once purchased, your home is likely to be your biggest asset and possibly a path to building wealth.

So this rite of passage probably isn’t something to be done without a lot of preparation. For instance, when preparing to buy a home, you usually have to focus on such factors as:

•   Saving for a down payment

•   Optimizing your credit score

•   Understanding what your monthly expenses will be

•   Considering the dynamics of the real estate market

•   Researching where you want to live

•   Making sure you’re ready for the responsibilities of homeownership

You’ll learn more about these factors in a minute, but first, take this quiz to get a read on just how ready you are to dive into house buying. While it won’t answer the question, “Am I ready to buy a house?” definitively, it can help you gauge where you stand.

Then, read on to learn more about how to make snagging your dream house become a reality.

Homebuyer Readiness Quiz

Now that you’ve taken the quiz, here’s more intel on how to get ready to buy a house.

Recommended: First-Time Homebuyer Guide

Financial Factors

Homeownership can be quite expensive, and has become especially pricey in recent years. As you may know, housing prices soared during the pandemic, rising over 40% in some areas. In an effort to stem that, as well as other aspects of inflation, the Fed has been raising interest rates, so it’s become more expensive to borrow money, too, further squeezing potential homebuyers.

But don’t let that discourage you: Homeownership is still a goal you can realize, especially if you prepare for the following:

•   Down payment: Ideally, lenders like to see a 20% down payment (although SoFi offers flexible down payment options)., Plus, you’ll need to have enough money left over for closing costs, moving costs, and any renovation costs involved.

•   Private mortgage insurance (PMI): If you are putting down less than 20% on your home purchase, you may have to pay private mortgage insurance (PMI). This helps protect your lender, as you may look like a less well-qualified home purchaser. This cost is typically charged along with your monthly interest payment by the lender. It’s wise to include this amount in your calculations, if necessary, as you move toward buying a house.

•   Income: Knowing the answer to “When can I buy a house?” doesn’t depend on a particular salary. However, mortgage lenders do like to see two years of steady income, because both job continuity and consistent income are important.

•   Debt-to-income (DTI) ratio: You’ll need to see if your monthly income allows you to afford the mortgage payment you’d be taking on. This typically involves calculating your debt-to-income ratio, or DTI.

•   Here’s an example: Say you make $6,000 a month before taxes. You’re paying $1,500 a month in rent, and when you add in car payments, credit card debt, and student loan payments, that equals another $700. You’ve got monthly expenses, then, of $2,200. When you divide that by your monthly income ($2,200/$6,000), then your debt-to-income ratio is 36.67%, which is in the range of what many lenders like to see.

•   Credit score: It’s helpful to know your credit score before you go home shopping and, if it’s under 700 (meaning either at the low end of a good score or a fair credit score), work to build it. That can open you up to more mortgage offers and lower interest rates.

•   Mortgage options: Speaking of mortgages, connecting with lenders or mortgage brokers can help you gain a better understanding of how much house you can afford, what kinds of mortgages are available, and whether you can get prequalified or even preapproved before you shop in earnest. This can give you an edge, or possibly even be necessary, in today’s tight housing market.

•   Homeownership costs: In addition to the mortgage payment and any PMI, you’ll need to budget for property taxes, heating costs, and other regular expenses. Make sure to factor those in as you develop a budget for your life as a homeowner.

Recommended: How to Qualify for a Mortgage

Housing Market Conditions

When determining if you’re ready to buy a house, also consider housing market conditions. Among the key factors:

•   Location: Of course, you’ll want your home to be in a desirable location, however you define “desirable.” It could mean being in the heart of a busy city or in a peaceful place along a river. If you have or plan to have a family, quality schools are likely important, and so forth.

•   It’s likely going to make your house hunt more manageable and productive if you narrow down where you want to live to a few towns or neighborhoods. Otherwise, you might spend a lot of time and effort driving all over and not being able to whittle down the choices.

•   Real estate dynamics: In desirable locations, competition is fierce today, with homes often selling quickly after being put up for sale and bidding wars occurring. And, as demand has increased, available housing (especially for first-time homebuyers looking to purchase in affordable price ranges) has therefore decreased.

So, you’ll have to be prepared to compete in the current housing market conditions, which means having your financial situation in order so you can make a timely offer on a house of choice.

Lifestyle Considerations

Say you’re confident that you have the financial resources to purchase a home in your neighborhood of choice. Before you move forward, here are a couple of lifestyle issues to consider:

•   Home maintenance: If you’re used to renting, your landlord has played a key role in home repairs and so forth. If you buy a home, you would now be your own landlord. That means dealing with broken boilers, leaky roofs, yard maintenance, and more. Be sure you budget for that financially and are also prepared for the responsibility.

•   Community: Think about whether you are ready to settle down in a particular community for at least a few years. If not, you may not break even when you sell the house you bought. Here’s why: It can take time to recoup closing costs and other expenses you covered when purchasing the home.

The Takeaway

Homeownership can be the foundation of the American dream for many people. It’s also a potential avenue to build wealth. But when you should buy a house depends on a variety of factors. Before you dive in, do your research, save for your down payment, and optimize your finances so you are ready to handle the responsibility.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

How do I know if I’m ready to buy a house?

You may be ready to buy a house if you have a stable income, manageable debt, a good credit score, and enough savings for a down payment and other home-buying costs. You should also be prepared for ongoing expenses such as property taxes, maintenance, and repairs.

What credit score do I need to buy a house?

There is no single credit score requirement to buy a house, but a score of 700 or higher may help you qualify for more favorable mortgage options and interest rates. Optimizing your credit before applying can potentially save you money over the life of the mortgage.

What should I consider before buying a house?

Before buying a house, consider your budget, local housing market, and preferred location. You should also make sure you’re ready to handle the ongoing responsibilities and costs of homeownership.

---

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

SOHL-Q326-091

Read more

The cost of turning your house into a “smart home” could range from about $150-$10,000 or more, depending on what type of upgrades you might be considering.

According to 2026 data from the home improvement site Angi.com, the typical cost of a smart home system ranges from $201-$1,519. But several factors could affect how much you end up paying, including the size of your home and whether you DIY the install or hire a professional to take charge.

As you’re thinking about how to upgrade your home to a smart home, read on for a look at what it might cost, whether the return on investment (ROI) could be worth the price, and how you might choose to pay for those cool new devices.

Understanding Smart Home Technology in 2026

Way back in 1962, the animated TV show The Jetsons and other sci-fi classics gave viewers an aspirational look at what life might be like 100 years in the future, when a home filled with computerized gadgets would make life so much easier for moms, dads, the kids, and even the family dog.

Who knew, even as you watched those old shows as reruns decades later, that so much of what they predicted would come true? Okay, maybe you don’t have flying cars yet. But in 2026, smart home technology, or home automation, is a reality … and getting smarter all the time.

You can see who’s at your door from 1,000 miles away. Or program your robot vacuum to clean your floors when and where you want. You can use your smartphone, tablet, laptop, or a smart home assistant, such as Google or Alexa, to turn lights on and off, turn the thermostat up or down, open and close the blinds, and more. Many of today’s devices can be operated separately or linked together to act as a cohesive network. And besides the obvious convenience, smart tech can also help reduce some costs and your carbon footprint.

Recommended: 4 Ways to Upgrade Your Home

Smart Home Cost Breakdown by Category

The cost of turning your house into a smart home will depend on which devices you choose to install or upgrade and how connected you want those various devices to be. If you install one or two gadgets yourself, such as a new smart thermostat or a doorbell camera, you can probably keep the cost to a minimum. But if you have a professional come in and connect your whole home, the price could be much higher. Here’s a breakdown of what a few of the more popular smart devices could run you:

Smart Home Cost: Security Systems

Because they can allow you to better monitor your property when you’re away, home safety systems are among the most popular automated setups offered. And there’s a wide range of options available. You can choose between a wired or wireless (Bluetooth or Wifi) system, for example, or between a professionally installed and monitored system and one that you set up and monitor yourself using your phone. Depending on your choice and how elaborate the setup of sensors and cameras is you could spend anywhere from $201-$4,000 or more on a smart home system, with an additional charge for external monitoring for some systems.

Smart Home Cost: Automated Lighting and Electrical

Smart home technology has come a long way since clapping to turn a lamp on and off was considered high tech. Today’s smart lighting can be controlled remotely or set up to go on and off automatically, so you can keep your home safer and use your electricity more efficiently. You also may be able to adjust the brightness and color of your lights. Outfitting your home with smart lighting could cost from $10-$150 per unit. Or you can start out a little smaller and buy smart bulbs (about $15-$25 each on average) that wirelessly connect to your home’s hub (think Alexa or Google Nest) or your smartphone.

Smart Home Cost: HVAC and Climate Control

A smart thermostat offers another way to control your home environment from afar and potentially lower your power bills. You can program it to turn on or turn up the air conditioner or heater before you get home so the temp is just the way you like it. Or you can make adjustments any time remotely using your smartphone. Some smart thermostats also can “learn” your temperature preferences and automatically create a heating and cooling schedule based on your habits. The price of a smart thermostat can range from about $50-$500. A fully automated HVAC system, on the other hand, could cost from $8,000-$15,000 or more.

Recommended: What Does an HVAC Replacement Cost?

Entry-Level vs Premium Smart Home Setups

There are smart home options to fit just about any budget. But when you compare entry-level vs. premium smart home setups, you’ll likely find differences in performance, design, functionality, and support. Professional installation, customization, and the brand you buy can all factor into the price you’ll ultimately pay to transition to a smart home. (Of course, you could also buy a new home that’s already outfitted with a state-of-the-art smart system.)

If your budget is a factor, you may want to start small with a few essentials that you can install yourself. You might have to invest quite a bit more (thousands of dollars vs. hundreds) to get a top-tier whole-house system that seamlessly integrates all the electronics inside and outside your home.

Hidden Costs of Smart Home Implementation

When you’re budgeting for any smart home upgrade, it can be a good idea to prepare for extra costs, including:

Subscription Costs

Some smart devices come with monthly fees that can add to your overall cost. If you want 24/7 security system monitoring, for example, you could pay $10-$40 or more each month for that service. (Some self-monitored video doorbells also require a subscription — especially if you want to customize your setup.) Your smart home system may also charge an annual subscription ($500-$1,500 or more, depending on the level of service) to cover ongoing maintenance, software and equipment updates, and general support.

Stronger Wifi Requirements

If your smart home system requires a stronger signal than you currently have, you may have to get an upgrade and pay more each month to your wireless company.

Repairs and Replacements

If your smart appliance (refrigerator, dishwasher, microwave, etc.) breaks down, the cost of repairing or replacing it will likely be higher than what you’d pay for basic appliances. And you may not be able to take certain larger appliances or your security system with you if you move.

Packages vs Individual Pieces

Depending on how big you think you might want to go with your smart home tech, you may want to compare the cost of buying a comprehensive system of integrated smart components vs. buying one device at a time. You might be able to save some money by purchasing a package that includes professional installation, service, and other features. (If you’re considering a renovation or remodel, it may make sense to include the costs of a smart home upgrade in your budget.)

Financing Your Smart Home Upgrade

While some smart home devices can be relatively low in cost, others may require a more significant investment. So besides researching the various costs, it can also make sense to consider how you might pay for any smart tech improvements.

If you have some equity built up in your home, you may want to look into the pros and cons of using a home equity loan vs. a home equity line of credit (HELOC) to help finance your project. Both allow those who qualify to borrow a large sum of money at a relatively low interest rate and with lower fees than a mortgage refinance. But each works a bit differently:

•   A home equity loan is disbursed in a lump sum that you’ll begin repaying immediately, with interest, usually at a fixed rate. This might be a good solution if outfitting your home with smart technology is part of a larger renovation project that you undertake with a contractor who can give you a bid for the total costs to remodel or renovate a home in advance, so you know, roughly, what your total spend will be.

•   A HELOC is a revolving line of credit that works more like a credit card. You can take out money as you need it, up to your approved limit, during the draw period, which typically lasts 10 years. Usually, you’ll be required to make interest-only payments on the amount you borrow during that time. When the draw period ends, you’ll enter the repayment period, which is usually 20 years, and at that time, you must begin repaying the principal balance with interest, usually at a variable rate. A HELOC could be a good solution if you aren’t sure exactly how large a project you’re taking on and what it might cost — if it’s a few rolling renovations vs. a big remodel, for example.

It might be tempting to go to the lender that provided your home mortgage loan for financing, but it’s always a good idea to look around and check rates with several lenders before making a commitment.

If you don’t have enough equity in your home, or if you prefer not to use your home as collateral, another possibility might be an unsecured home improvement loan. With this type of personal loan, the funding may be faster (there’s no appraisal required), and your home isn’t on the line if you fall behind on your payments. A fixed interest rate may allow for easier budgeting.

Any of these borrowing options can be used to cover the costs of upgrading to a smart home, so it’s really about finding the right fit for your needs.

ROI of Smart Home Investments

Is a smart home worth the cost? Even if your focus is primarily on comfort and convenience when you invest in smart home technology, you’ll likely notice other benefits as well.

You can use devices that control your home’s temperature, appliances, and lights, for example, to help you reduce your monthly energy bills. And installing a security system may help you reduce your insurance costs.

Adding smart home components or a whole system can also help you increase or maintain the value of your home. Is a smart home worth it? According to Forbes.com, sellers of smart homes can realize a 50% return on their investment. And because buyers are increasingly looking for smart home features, the right upgrades also may help you sell your home faster.

The Takeaway

Technology that can make your home life simpler, safer, and more comfortable is no longer a fantasy. Upgrading your home to a smart home isn’t even really considered a luxury anymore.

How much is a smart home? These days, there are devices and packages designed to fit just about any budget, from individual components that may cost less than $100 to whole-home systems that can cost $10,000 or more. If you’re spending big on smart tech or wrapping smart home technology into a larger renovation, a home equity line of credit could help you cover the bills.

SoFi offers both home equity loans and home equity lines of credit (HELOCs) to help you leverage your home's value. Access up to 85% of your equity (up to $750,000), to fund renovations, consolidate high-interest debt, or cover significant expenses. Both options offer competitive rates compared to other loan types. Plus, you’ll be paired with a dedicated SoFi Mortgage Loan Officer who can help you find the right fit for your needs.

Unlock your home’s value with a home equity loan or HELOC from SoFi.

FAQ

What’s the average cost of a basic smart home setup in 2026?

The typical cost of a smart home system can range from about $200-$4,000 or more. But several factors can affect how much you end up paying, including the size of the upgrade and whether you DIY the job or hire a professional to take charge.

Which smart home features offer the best return on investment?

Smart thermostats, lighting, and security systems are currently in high demand. Therefore, they generally offer the best return on investment.

Can I finance smart home upgrades through SoFi?

Absolutely. SoFi offers several financing options for homeowners who want to upgrade their tech, including a home equity loan, a home equity line of credit (HELOC), and an unsecured home improvement loan.

How much should I budget for ongoing smart home maintenance and subscriptions?

This depends on the type of system you plan to purchase. It may make sense to budget at least $50 a month for maintenance and subscriptions.

Are there tax incentives or rebates available for energy-efficient smart home implementations?

Tax laws that apply to energy-efficient upgrades are complicated and can change from year to year. Keep your receipts (documenting your costs is key) and talk to your tax preparer about potential tax breaks, but don’t count on them when you’re planning your project.

---

Photo credit: iStock/Srdjanns74

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

^²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.
You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.
In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

SOHL-Q326-084

Read more