house interior

How to Buy a Starter Home: Pros, Cons, and Tips

Buying your first house is a major move, even if the home itself is tiny. Becoming a homeowner can be a great way to start putting down some roots and building equity. And just because it’s called a “starter home” doesn’t necessarily mean you’re twenty-something when you go shopping for one. For many people, the purchase of a first, maybe-not-forever house can come years or decades later.

Key Points

•   Purchasing a starter home can be a smart entry into homeownership.

•   Assess your financial status and future goals before making a purchase.

•   Investigate various mortgage types and down payment requirements.

•   Owning a starter home can offer stability and equity growth.

•   Recognize possible drawbacks, including increased expenses and upkeep.

What exactly makes a good starter home? How do you know when to jump into the housing market? There are many variables to factor in, such as price, location, type of home, the sort of mortgage you’ll get, your personal finances, and more.

Read on to learn answers to such questions as:

•   Why should you buy a starter home?

•   Should you buy a starter home or wait?

•   How do you buy a starter home?

What Is a Starter Home?

The first step in deciding “Should I buy a starter home?” is understanding what exactly that “starter home” term means. A starter home is loosely defined as a smaller property — usually under 1,500 square feet — that a first-time buyer expects to live in for just a few years.

The home could be a condo, townhouse, or single-family home. But generally, when you purchase a starter home, you anticipate outgrowing it — maybe when you get married or have a couple of kids, or because you want more space, a bigger yard, or additional amenities.

A starter house could be brand-new, a fixer-upper, or somewhere in between, but it’s usually priced right for a buyer with a relatively modest budget.

That modest budget, though, may need to be loftier than in years past. From 2019 to 2024, starter home values increased 54.1%, according to USA Today. In more than 200 U.S. cities, the typical starter home on the market is now worth $1 million or more.

That might sound a little intimidating, but remember, that’s the mid-range price. Depending on where you live, there may be entry-level homes selling at significantly lower price points.

Recommended: What Is Housing Discrimination?

How Long Should You Stay in a Starter Home?

Unless you’re a big fan of packing and moving — not to mention the often-stressful process of selling one home and then buying another, or buying and selling a house at the same time — you may want to stay in your starter home for at least two to five years.

There can be significant financial reasons to stick around for a while:

•   Home sellers are typically responsible for paying real estate agents’ commissions and many other costs. If you haven’t had some time to build equity in the home, you might only break even or even lose money on the sale.

•   You could owe capital gains taxes if you’ve owned the home for less than two years and you sell it for more than you paid.

Of course, if there’s a major change in your personal or professional life — you’re asked to relocate for work, you grow your family, or you win the lottery (woo-hoo!) — you may need or want to sell sooner.

What Is a Forever Home?

A forever home is one that you expect to tick all the boxes for many years — maybe even the rest of your life. It’s a place where you plan to put down roots.

A forever home can come in any size or style and at any cost you can manage. It might be new, with all the bells and whistles, or it could be a 100-year-old wreck that you plan to renovate to fit your home decorating style and vision.

Your forever home might be in your preferred school district. It might be close to friends and family — or the golf club you want to join. It’s all about getting the items on your home-buying wish list that you’ve daydreamed about and worked hard for.

At What Age Should You Buy Your Forever Home?

There’s no predetermined age for finding and moving into a forever home. Some buyers plan to settle in for life when they’re 25 or 30, and some never really put down roots.

But according to data from the 2024 Home Buyers and Sellers Generational Trends Report from the National Association of Realtors® Research Group, buyers in the 59 to 68 age range, referred to as younger baby boomers, said they expected to live in their newly purchased home longer than buyers from other age groups, with an expectation of 20 years of residence.

Younger Millennials (ages 25 to 33) and Gen Z buyers (18 to 24) bought the oldest homes, typically referred to as “fixer-uppers.” Both groups said they expected to stay in the starter home for around 10 years.

The median expectation for buyers of all ages was 15 years.

Recommended: First-Time Homebuyer’s Guide

Benefits of Buying a Starter Home

Are you contemplating “Should I buy a starter home?” Here are some of the main advantages of buying a starter home:

•   Becoming a homeowner can bring stability to life. A starter home comes with a feeling of “good enough for now” that, for some buyers, is just the right amount of commitment without feeling stuck in the long term.

•   Buying a starter home is also a great way to try on aspects of homeownership that renters take for granted, like making your own repairs and mowing your own yard. The larger the house, the more work it usually brings. With a starter home, you can start small.

•   Buying a starter home is also an investment that could see good returns down the road, if you can find a relative deal when you buy. While you live in the home, you’ll be putting monthly payments toward your own investment instead of your landlord’s. Depending on market conditions, you could make some money when you decide to trade up, either through the equity you’ve gained when you sell or recurring income if you choose to turn it into a rental property.

•   Homeowners who itemize deductions on their taxes may take the mortgage interest deduction. Most people take the standard deduction, which for tax year 2022 (filing by Tax Day 2023) is:

◦   your home mortgage interest on the first $750,000 of indebtedness if you are a couple filing jointly

◦   your home mortgage interest on the first $375,000 of indebtedness if you are a single taxpayer or a married individual filing separately

•   Some homeowners who itemize may be able to do better than these percentages. For instance, in some states, a homestead exemption gives homeowners a fixed discount on property taxes. In Florida, for example, the exemption lowers the assessed value of a property by $50,000 for tax purposes.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

Questions? Call (888)-541-0398.


Downsides of Starter Homes

Next, consider the potential disadvantages of snagging a starter home:

•   While the idea of buying a home just big enough for one or two is a romantic one, the reality of finding a starter home that’s affordable has gotten tougher.

   The outlook has been so bleak, especially in some larger cities, that some Millennials are opting out of the starter-home market altogether, choosing instead to rent longer or live with their parents and save money.

   Who can blame Millennials for taking a different approach to homeownership than their parents? The older members of this generation came of age during the financial crisis of 2008-09, which included a bursting housing bubble that put many of their parents — and even some of them — underwater on a mortgage they may not have been able to afford in the first place.

•   When thinking about whether you should buy a starter home, know that it may require a lot of sweat equity and cash. If you buy a bargain-priced first home, you may be on the hook for spending much of your free time and cash to restore it.

•   Another con of buying a starter home is the prospect of having to go through the entire home-buying process again, possibly while trying to sell your starter home, too. Keeping your house show-ready, paying closing costs, going through the underwriting process, packing, moving, and trying to time it all so you avoid living in temporary lodging is a big endeavor that, when compared with the relative ease of moving between apartments, can be seen as not worth the effort.

•   In some circumstances, you may have to pay capital gains taxes on the sale of your starter home when you move up.

If you aren’t ready to jump into a starter home, an alternative could be a rent-to-own home.

How to Find Starter Homes for Sale

Are you ready to start the hunt? Here are some tips for finding a starter home:

•   Work with an experienced real estate agent who knows your market and spends their days finding homes in your price range.

•   Rethink your house criteria. If you are buying a starter home and figured you’d shop for a three-bedroom, you may find more options and less heated competition if you go for a two-bedroom house.

•   Take a big-picture view. If you’re a young couple with no kids yet, maybe you don’t need to purchase in the tip-top school district. After all, you are at least several years away from sending a little one to their first day of school Or, if prices are super-high for single-family houses, could buying a condo or a townhome work well for a number of years?

   You might also look into purchasing a duplex or other type of property.

Average U.S. Cost of a Starter Home

The typical value of a starter home in the U.S. was $196,611 in late 2024. Keep in mind, however, that there is a huge variation in costs. A rural home may be much less expensive than shopping for a starter home that’s within short commuting distance of a major city, like New York or San Francisco.

Is Buying a Starter Home Worth It?

Deciding whether a starter home is worth it is a very personal decision. One person might be eager to stop living with their parents and be ready to plunk down their savings for a home. Another person might have a comfortable rental in a great town and be reluctant to take on a home mortgage loan as they continue to pay down their student loan debt.

When you consider the pros and cons of starter homes listed above, you can likely decide whether buying a starter home is worth it at this moment of your life.

Tips on Buying a Starter Home

If you’re tired of renting or living with your parents but don’t have the cash flow necessary for anything more than a humble abode, a starter home could be a great way to get into real estate without breaking the bank. Some pointers on how to buy a starter home:

•   Before you buy any home — starter or otherwise — it’s important to sit down and crunch the numbers to see how much home you can realistically afford. Lenders look at your debt when considering your debt-to-income ratio (DTI), but they aren’t privy to other regular monthly expenses, such as child care or kids’ activity fees. Be sure to factor those in.

•   You also may want to look at how much you can afford for a down payment. While a 20% down payment isn’t required to purchase a home, most non-government home loan programs do require some down payment.

   It’s possible to buy a home with a small down payment: The average first-time homebuyer puts down about 6% of a home’s price as a down payment, according to the latest data from the National Association of Realtors (NAR).

   In addition, putting down less than 20% means you may have to pay private mortgage insurance (PMI).

•   You’ll want to explore different mortgage loan products as well, possibly with a mortgage broker. You’ll have to decide between adjustable and fixed rate offerings, 20-year vs. 30-year mortgages, and different rates. You may also be in a position to buy down your rate with points. Getting a few offers can help you see how much house you can afford, as can using an online mortgage calculator.

•   The decision to purchase a starter home is about more than just money, though. You may also want to consider your future plans and how quickly you might grow out of the house, whether you’re willing to live where the affordable houses are, and if you’ll be happy living without the amenities you’ll find in a larger house.

•   Other factors to consider are your current state of financial health and your mental readiness for a DIY lifestyle (which includes your willingness to fix your own leaky toilet or pay a plumber.)

•   If you’re ready to make the leap, there are plenty of home ownership resources available to help you get started on the path to buying your starter home. Your first step might be to check out a few open houses and to research mortgage loans online.

The Takeaway

Buying a starter home can be a good way to get your foot in the door of homeownership, but it’s important to consider your financial situation and your plans for the next two to five years or more before buying a starter house.

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 much money should you have saved to buy a starter home?

The average down payment is about 6% of the home purchase price. That number can help you see how much you want to have in the bank, though mortgage loans may be available with as little as 3% down or even zero down if you are shopping for a government-backed mortgage. Worth noting: If your down payment is under 20%, you may have to pay private mortgage insurance.

What is considered a good starter home?

A good starter home will likely check off some of the items on your wish list (square footage, location, amenities, etc.) and will not stretch your budget too much. You want to be able to keep current with other forms of debt you may have as well as pay your monthly bills (which will likely include mortgage, property tax, home maintenance, and more). That financial equation may help you decide whether to buy a starter home or wait.

How much do people spend on a starter home?

As of Summer 2024, the typical starter home was worth $196,611. However, prices will vary greatly depending on location, size, style, and condition.


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.

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.

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.


*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.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOHL-Q125-047

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How Much Does It Cost to Build a Houseboat?

How Much Does It Cost to Build a Houseboat? Guide to Houseboat Costs

For those of us seeking the appeal of a minimalist life on the water, the cost to build a houseboat will depend as much on how much elbow grease we’re willing to dedicate to the project as it does on the type of materials we decide to use for the job.

A houseboat is a self-propelled vessel with a cabin. There are many styles, giving people wide discretion on how they choose to build their own houseboat.

Let’s break down factors and average costs associated with building a houseboat.

Key Points

•   Building a houseboat costs at least $20,000 and probably closer to $50,000 for a basic 50-foot model, assuming DIY construction.

•   Costs increase significantly with professional labor for electrical and plumbing work.

•   Houseboat kits and plans are available for those preferring a DIY approach.

•   Used houseboats vary widely in price, from a few thousand dollars to over $1 million.

•   Financing options for houseboats include boat loans and personal loans, not traditional mortgages.

Average Cost of Building a Houseboat

How much does it cost to build a houseboat? Just like the cost to build a house, it depends on size, materials, whether it’s a total DIY job, and more.

The cost of building a single-story 50-foot houseboat is at least $20,000 and perhaps closer to $50,000, some sources say. To be clear, that low estimate means doing all the work yourself or with the help of friends.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

Questions? Call (888)-541-0398.


Labor costs for professionals like electricians or plumbers will increase your expenses substantially. So understand that you’ll be trading time and know-how for savings.

There are also houseboat kits and plans for sale. Charmingly, some are advertised as DIY pontoon tiny houses.

By contrast, you can choose to purchase a serviceable preowned houseboat that needs some renovations. Used houseboats can go for anywhere from around $20,000 to way over $1 million (or multi-millions) for luxury craft that border on liveaboard yachts. A houseboat in good condition is generally going to cost you around $60,000 to buy used. Shiver me timbers!

Here’s a rough estimate of the cost of building a houseboat vs. buying a used one.

Building From Scratch Cost Preowned Houseboat Cost
$20,000 and up for 50 feet $60,000 and up

Regardless of whether you’re planning to handle the build yourself or you intend to refurbish a used houseboat, you may need financing. How to pay for it? Not with a traditional mortgage. Options include a boat loan and a personal loan.

Homeowners with sufficient home equity may be able to launch their houseboat plans with a home equity line of credit (HELOC), home equity loan, or cash-out refinance.

Recommended: How to Find a Contractor

Factors That Affect the Cost of a Houseboat

Houseboat living has caught on with some retirees, who want to downsize home-wise.

It also could be a choice for minimalists and millennial homebuyers who think outside the box.

Not everyone, of course, will want to be a full-time liveaboard. Some water lovers will be OK with a basic houseboat for cruising and recreation, one that is maybe trailerable. Those are factors that will affect the cost of your preferred houseboat.

Here are factors to consider.

Size

The size of your houseboat will have a major impact on the cost of materials you’ll need. Are you planning to build a single-story or double-decker houseboat? Will this be something that would fit on a standard 50-foot pontoon base, or will you need something more robust to keep it afloat?

Consider the cost of $50,000 to build a basic 50-foot houseboat that will probably end up offering 450-500 square feet of space. That comes out to at least $110 per square foot, assuming you don’t hire anyone to help with construction. Your houseboat project could very well end up costing more than $200 per square foot.

Bear in mind that these figures are a very rough estimate that was calculated across a broad average of houseboats.

Design

The design of your houseboat will have a large effect on your options when it comes to layout, maneuverability, and aesthetics.

Before you begin construction, you’ll need to decide on what type of hull best suits your houseboat. Aluminum pontoons are popular.

Catamaran cruisers are maneuverable and may be cheaper to build, but they often compromise on space. These designs are easily outfitted with motors and may be best suited for owners who intend to take them out occasionally.

Those looking for larger accommodations may prefer a type of house called a floating home, which is actually different from a houseboat. It often has a concrete hull and is meant to stay in one place, permanently attached to utilities. The price, though, will usually be much higher than that of a houseboat.

A few sailors may opt to build a yacht, which offers the ideal combination of maneuverability and living space. You’ll have to have a hefty check at the ready or prepare to borrow a boatload if you’re considering this option.

Materials

The most common materials used to build boats intended for habitation are aluminum and fiberglass, but in some cases steel and wood can be construction materials of choice.

A standard pontoon base can cost between $3,000 and $10,000.

The cost of interior finishes largely depends on your personal tastes. They can be affordable if you’re fine with a no-frills setup but can tack skyward for more luxurious tastes and larger vessels. Stainless steel appliances and granite countertops cost money, regardless of whether they go in a house or a houseboat.

Will you want a staircase and flybridge? Budget accordingly.

Location and Water Depth

The environment you intend to keep your houseboat in will affect how much you’ll have to pay to make it seaworthy.

The price of an inboard motor may start around $8,000 and go up to $25,000. An outboard could start at $1,000 and go up to around $15,000. Depending on how large your vessel is, you may need to pay for a larger motor with more horsepower.

Federal regulations governing recreational craft prohibit the majority of houseboats from sailing in deep ocean waters. However, cruises along the shoreline, or in a lake or river, are acceptable options for capable houseboats.

Weather

Whether you decide to launch or keep your houseboat in freshwater or saltwater and local weather patterns will affect houseboat maintenance.

Saltwater is a tougher environment but has a lower freezing temperature than freshwater, which means that you likely won’t have to worry about ice forming in the water.

By contrast, if your houseboat will primarily be in freshwater, you may have to deal with ice. As water freezes into ice, it expands, which can damage your hull or rudder.

Permits and Regulations

Any recreational vessel must meet federal safety requirements and possibly abide by state regulations.

Average Cost of Living on a Houseboat Year-Round

The average cost of living on a houseboat is $30,000 per year, including a boat or personal loan payment, some sources say. This breaks down to around $2,500 per month. Some frugal houseboat enthusiasts report living on as little as $6,000 per year.

Most of these costs encompass mooring fees, utilities, and insurance, but you’ll also need to budget for repairs and applicable local fees. Some houseboat communities have a homeowners association that allows all residents to distribute community expenses like maintenance of the docks.

Does a houseboat cost less than a home sitting on terra firma? Generally, yes. You can build a houseboat for far less than a comparably sized single-family home. As a future liveaboard, though, you might want to compare moorage and other fees to the costs of maintaining a traditional home.

The IRS says a boat with cooking, sleeping, and toilet facilities can be a main or second home, so interest paid on a loan for your houseboat could be included in the mortgage interest deduction if you itemize.

The Takeaway

How much does it cost to build a houseboat? The cost could start at $20,000 for a DIY build and depends largely on size and materials. Hiring skilled labor will add to that substantially. An alternative to building a houseboat is buying a used one and making it your own. How to pay for these nautical visions? One way, for qualified homeowners, is a HELOC brokered by SoFi.

SoFi now offers flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively low rates. And the application process is quick and convenient.

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

FAQ

How large can a houseboat be?

In most cases, 40 to 50 feet is the average length and 8 to 20 feet the range of width for a houseboat that will be comfortable as a long-term dwelling.

How long does it take to build a houseboat?

A DIY houseboat project could easily take 18 months to complete, but the time frame will depend on whether you’re able to work on the houseboat project full time and whether you enlist any help. Remember to factor in time to obtain necessary permits or inspections for your area.

Where can I get financing to build a houseboat?

You may be able to finance your houseboat build through lenders that focus on marine and RV lending. Other options are a personal loan, a HELOC, a home equity loan, and a cash-out refinance.


Photo credit: iStock/MarkHatfield

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.


*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.

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.

SOHL-Q125-040

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What Is a Split-Level House? Is It Right for You?

What Is a Split-Level House? Should You Consider Owning One?

As you’re starting your home-buying journey, you may come across a style referred to as a split-level house. Popular in the 1950s through the 1970s, split-level homes appear to be making a comeback.

What is a split-level house? Keep reading for the answer and whether it’s the right style for you.

Key Points

•   Split-level houses feature staggered floor levels connected by half-flights of stairs.

•   Advantages include affordability, privacy, and efficient use of space on a smaller lot.

•   Disadvantages involve frequent stair use for those living in the home, potential resale challenges, and limitations to remodeling.

•   Split-level homes differ from raised ranch houses. They have more levels that are connected by half-flights of stairs.

•   When considering a split-level home, weigh the benefits of privacy and space against the necessity to climb stairs and challenges that may come when it’s time to sell.

Characteristics of a Split-Level House

Often seen as a starter home, a split-level house differs from other traditional homes due to its layout. A cousin of the ranch home, also a popular midcentury style, this type of house commonly has two or three levels that are connected by half-flights of stairs.

The most prominent designs feature the living room, kitchen, and dining room on the main level. A half-stairway may lead up to the bedrooms, and a second half-stairway leads down to a den, basement, and sometimes garage. The garage may be at grade level, with the bedrooms above it.

A split-level home with three floors can be referred to as a trilevel home, though this style can also have a fourth or fifth floor. A split-level home may have a low-pitched roof, a large picture window, overhanging eaves, and an asymmetrical facade.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

Questions? Call (888)-541-0398.


Recommended: Do You Qualify as a First-Time Homebuyer?

Pros and Cons of a Split-Level House

Consider the following advantages and drawbacks of a split-level home.

Pros

•   May be more affordable: Split-level homes are generally more outdated — or just feel that way — so you could find these homes at a bargain. (Try this mortgage calculator to get a feel for the numbers.)

•   Nostalgia is in: Sometimes it’s hip to be square. Young buyers may be drawn to the old-school feel of a split-level house.

•   Ability to qualify for home financing: If you can find a home at an affordable price, it might be easier to qualify for a mortgage.

•   More privacy: Split-level homes tend to offer more privacy because of the staggered levels. Upstairs or down, you might be able to set up a quiet home office.

•   May feel bigger: Split-level homes offer more square footage than many ranch-style homes, and they keep the rooms you use most frequently together.

Cons

•   Those stairs: People who aren’t very mobile or are afraid of climbing stairs as they get older may not be the best fit for split-level homes. Homeowners will need to use the stairs frequently, although they’re half-flights.

•   Could be hard to sell: When homebuyers are looking at the different types of houses, they may view split-level homes as awkward-looking or dated, so it could be hard to sell if you’re ready to move.

•   Remodeling can be challenging: The layout isn’t conducive to making any dramatic changes. Each level is meant to have a distinct purpose.

•   Subterranean space may not be valued: Thanks to the basement, a split-level home may not appraise as high as a one-level home.

Recommended: Understanding Mortgage Basics

Difference Between a Split-Level House and a Raised Ranch

Although some people use the term split-level to describe a raised ranch style, a true raised ranch has two levels, while a split-level home has three or more.

A raised ranch house is basically a ranch house that sits atop a basement or a first floor that contains a finished room and a garage. The story underneath the main floor of the home is meant to provide additional living space.

The building materials may be different: In most cases the basement or first floor is made of brick, with the upper level using aluminum or wood siding. There may also be more decorative details such as nonfunctional shutters.

Finding a Split-Level House

You’ll find split-level homes all across the U.S., often in suburban areas outside of cities. They are very common in the Midwest.

Since these types of homes have basements, you’ll need to live in an area where that’s typical. Some parts of the country near the ocean or large bodies or water have poor soil types and won’t usually have homes with basements.

You might find a, well, staggering deal on a split-level home in one of the 50 most popular suburbs in the U.S.

Who Should Get a Split-Level House?

Those who are the best fit for a split-level house are buyers who are willing to climb stairs daily, families that value privacy, and those who see the value of maximum living space on a smaller lot.

Some people will find a one-level house, condo, or townhouse more their style. This home loan help center can be of use if you’re shopping for a home and a mortgage.

The Takeaway

If you value privacy and space and don’t mind stairs and a boomer aura, a split-level house could be just the ticket. Split-level homes can be a good value.

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

Are split-level homes hard to resell?

Split-level homes may not be for all homebuyers, though that doesn’t necessarily mean you can’t sell this kind of home. The key to encouraging buyers to make an offer is to shine a positive light on the home. That could mean staging it, adding curb appeal, and making upgrades as small as paint and new fixtures.

Can you build up on a split-level house?

Yes. You may be able to add a level to the top, or put an addition on the side or back.

Are split-level houses expensive to build?

Because the home can be built on a smaller lot, it may be more affordable than other designs. The cost to build any home depends on the locale, materials, size, and contractor. If you’re considering building your own, shop multiple builders to see what you can get.

Can you get a loan to build a split-level house?

You may be able to get a construction loan to build a split-level house. It’s typically harder to get a construction loan than a mortgage, and construction loan rates tend to be higher than conventional mortgage rates.

Why are split-level homes cheaper?

Split-level homes tend to cost less than other types of comparable homes because of when they were built. Many homebuyers find the style unfashionable.

What are the disadvantages of split-level houses?

The main disadvantage of split-level homes is that they require homeowners to walk up and down stairs often to access different areas of the home. While it may not be a dealbreaker to some, those who are less mobile or are afraid of how they’ll age in the home may not find split-levels a good fit.

Are split-level homes a good investment?

Maybe. An investor who updates a split-level home while keeping some of its retro charm is likely to find takers.


Photo credit: iStock/davelogan

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.


*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.

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.

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.

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Beautiful Master Bathroom Remodel Ideas

Beautiful Primary Bathroom Remodel Ideas

Remodeling a primary bathroom can provide a spa-like sanctuary while adding value to your home. With some design upgrades, including countertops, tile, fixtures, cabinetry, and bathtub, you can create a new look that really makes a splash.

The vast array of materials, colors, and design choices can be overwhelming. To help get you started, read on for 20 primary bathroom — formerly referred to as a “master bathroom” — remodel ideas.

Key Points

•   Primary bathroom remodel ideas include updates like new countertops and space-saving floating vanities.

•   Master bathrooms have evolved away from opulent designs to be functional, spa-like spaces.

•   Current trends emphasize organic materials and earthy tones for a natural, calming atmosphere.

•   The average primary bathroom size is around 100 square feet, typically featuring double sinks, a large shower, and a toilet.

•   Remodeling costs vary, with a full renovation ranging from $7,000 to $30,000.

How the Primary Bathroom Has Changed Over Time

In the 1960s and 1970s, people started migrating from the cities to suburbia. More space meant more square footage. Initially, a primary bath meant a bigger bathroom with a double sink.

In the 1980s, opulence was king. Primary bathrooms meant sunken jetted tubs, lavish fixtures, and expansive countertops for perfume bottles and dressing vanities.

Today, many real estate agents and developers use only the term “primary” bathroom or bedroom and have dropped “master” from the vernacular (even though the National Association of Realtors® has noted that a HUD opinion said “master” in this context is not related to race or gender and therefore does not violate fair housing laws).

While primary bathrooms are still spacious, style trends have taken a more subtle turn toward organic materials and earthier tones.

Regardless of trends, the primary bathroom is here to stay, and is considered a must-have for many first-time homebuyers and experienced buyers.

What Is the Average Size of a Primary Bathroom?

A primary bathroom is defined as the largest bathroom in the house, and is almost always connected to the primary bedroom. A suburban primary bath averages 100 square feet but may range from 75 to 210 square feet.

A primary bathroom typically features:

•   A double sink

•   A large shower

•   A toilet

A bathtub is not a requisite, but these days most homebuyers want a tub in the primary bathroom, especially if there is not another one in the house.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

Questions? Call (888)-541-0398.


10 Standard Primary Bathroom Remodel Ideas

An average-size primary bathroom renovation may cost $10,000 to $30,000, depending on material types, labor costs (do you need to find a contractor?), and the scope of the project.

Here are 10 remodeling ideas for a standard primary bath that can offer panache for your cash.

1. Refresh Your Countertops

Replacing worn-out countertops in a primary bath can transform the feel of the space. Granite, marble, and quartz counters add a sense of contemporary elegance but cost more than laminate.

Granite can cost $180 to $330 per square foot; marble, $110 to $200; and quartz, $50 to $150. Laminate costs around $50 to $80 per square foot. That’s just the materials.

2. Go for the Hip, Hip Bidet

While common in Europe and Japan, bidets are finally gaining popularity in the United States. Because bidets limit the use of toilet paper, they are considered good for the environment and better for your skin.

A stand-alone bidet with installation can run between $500 and $2,000. An all-in-one bidet toilet can cost anywhere from $1,200 to $2,500.

3. Install a Walk-in Shower

Walk-in showers are usually partially enclosed with glass — devoid of doors, tubs, and shower curtains. The lack of barriers creates an open, contemporary look, almost like bathing in an outdoor shower.

Beyond being stylish, walk-in showers are accessible. With no steps or ledges to trip over, this type of shower remodel will age well with you and your home.

4. Consider Shower Speakers

As long as you’re redoing the shower, you might as well add some in-ceiling shower speakers. These advanced sound systems offer hands-free use, connecting to voice assistants like Siri or Alexa. Singing in the shower never sounded so good!

5. Install a Fan Timer Switch

A long, hot shower can generate a lot of steam. A smart-fan timer will sense the amount of steam and moisture in the air, turning on and staying on long after you’ve toweled off. This can prevent water damage, excess moisture, and potential mold.

6. Upgrade Outdated Fixtures

Switching out your old faucets, knobs, and light fixtures is a quick and cost-efficient way to spiff up your primary bathroom.

7. Tile an Accent Wall

Retiling the entire bathroom can take a big bite out of your wallet. Some homeowners are choosing to tile a single wall or focal area. You can energize the space by contrasting white subway tiles with a colorful wall of hexagonal tiles.

8. Elevate Your Look With Floating Shelves

Even a primary bathroom can use more storage. Floating shelves on the walls can help achieve a sleek, minimalist look and cost less than installing cabinets.

If the bathroom has a closet or you’d like to add one, a closet remodel might be in order.

9. Keep Things Cozy With Heated Floors & Towel Racks

If you’re renovating your primary bathroom floors, perhaps you could put in an electric or water-based heating system. This will ensure toasty toes without clunky radiators or exposed pipes.

Heated towel racks provide warmth in the winter and a quick-drying option for summer beach towels, all for about the same electric costs as flipping on a light switch.

10. Outlets in the Vanity Drawers

A primary bath typically has a lot of vanity drawers. Installing outlets inside the drawers will help keep hair dryers, electric razors, and other appliances from cluttering your countertop.

10 Small Primary Bathroom Remodel Ideas

Not every primary bathroom has enough space for a Jacuzzi tub. Here are some remodeling ideas for a small master bath.

1. Install a Pocket Door

Doors that open on hinges can take up a lot of space. A sliding pocket door to the bathroom can make the primary bath feel much roomier.

2. Add a Skylight

Adding a skylight in your primary bathroom can flood the space with natural light, making it feel more airy and spacious. So can recessed lighting.

3. Choose a Long Sink

Instead of the standard double sink, consider a long, troughlike sink for a primary bathroom vanity. It can provide a chic, modern look, and the elongated sink creates the illusion of more space.

4. Mount an Elongated Mirror

As with a long sink, stretching a mirror across a whole wall, instead of just over the vanity, can add depth and extra reflective light.

5. Opt for a Floating Vanity

A floating vanity is a cool design choice for a smaller primary bath. It can add openness and more space underneath the sink for storage.

6. Add Lights Under the Cabinets

Cabinets, vanities, and shelves can cast a shadow on the floor, darkening a master bathroom and making it feel smaller. Installing lights underneath countertops and storage units can cast a downward light to add dimension.

7. Stretch the Floor Tiles Into the Shower Stall

If you have a walk-in shower, consider extending the floor tiles into the shower stall floor. The continuity of design will give the illusion of a longer space.

8. Add Storage

Select bathroom pieces with a dual purpose: mirrors with built-in shelves, a vanity with multiple drawers. Containing your clutter will make the primary bath seem bigger and is one of the ways to refresh your home.

9. Consider a Freestanding Bathtub

Although a stand-alone tub can need more room for its fixtures, a clawfoot or modern oval bathtub can make a small primary bathroom feel grand.

10. Stick to Light Colors

Soft whites, blues, and greens reflect natural light from windows and skylights, making the primary bath seem more spacious. Choose light vs. dark colors for wall paint, shower curtains, and countertops.

Ways to Finance a Primary Bathroom Remodel

A primary bathroom renovation can add up. Here are several ways to finance the project.

HELOC

If you own your home and have sufficient equity, you may be able to open a home equity line of credit (HELOC), using your home as collateral. You’ll only make payments on the amount you borrow, the limit may be higher than a personal loan, and a HELOC usually has a lower interest rate than a credit card or personal loan.

But the rate is usually variable and can increase, and you could face closing costs and a minimum-withdrawal requirement. If you default on a HELOC, you risk losing your house.

Still, HELOCs tend to be hot when interest rates are rising.

Cash-Out Refinance

If you have sufficient home equity, you can apply for a cash-out refinance. You would refinance your home mortgage loan for more than you owe, take out part of the cash difference, and use the lump sum to build your new primary bathroom.

Expect mortgage refinancing costs of 2% to 6% of the loan amount.

Personal Loan

With a personal loan for home improvements, you can receive a lump sum and repay it with interest in monthly installments. These loans typically offer same-day funding with no collateral required. The rate is based on the loan term, the amount of credit requested, and your credit score.

Credit Card

If you have a 0% interest period on a credit card, it could be a smart way to pay for your primary bath reno. But unless you pay attention to the end of that introductory period, you could end up buried in interest charges. A missed payment will hurt your credit scores, and most of the time a late payment will stay on a credit report for seven years.

The Takeaway

Remodeling a primary bathroom will add value to your home and create a retreat where you can invest in some serious self-care. The cost to remodel has a wide range.

How to renovate so you can luxuriate? SoFi offers a personal loan of $5,000 to $100,000 with no fees, as well as a cash-out refinance.

SoFi now offers flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively low rates. And the application process is quick and convenient.

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

FAQ

Does remodeling a bathroom increase home value?

Yes. One study showed that the average full bathroom remodel cost of at least $25,000, and homeowners could expect a return on investment upon resale of more than 60%.

What is the biggest expense in a bathroom remodel?

Labor in general. Plumbing and tile work in particular. Want to move the toilet? That’s a complicated task.

What is trending in bathrooms?

Steam showers, towel and floor heaters, and spa-inspired decor. Vintage-inspired sinks, mirrors, light fixtures, and clawfoot tubs. Wet rooms, where the shower, tub, sink, and toilet are all in the same room at the same level. Earth tones and jewel tones. Smart devices.

What should you not do when remodeling a bathroom?

A downward-facing light centered over the mirror can cast a shadow. Other mistakes: not adding enough storage, buying fixtures made with plastic parts instead of metal, installing a hook out of reach from the shower, and not adding a hand shower, which will mean a tougher task cleaning the shower walls.


Photo credit: iStock/stocknroll

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.


*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.

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.

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How Rising Inflation Affects Mortgage Interest Rates

Inflation and Mortgage Rates: An Overview

The inflation rate doesn’t directly affect mortgage rates, but the two tend to move in tandem. Rising inflation shrinks purchasing power as prices of goods and services increase. Higher prices can then influence the Federal Reserve’s interest rate policy, affecting the cost of borrowing for lending products like mortgages. Then, as inflation cools, mortgage interest rates often ease as well.

Key Points

•   Inflation does not govern mortgage rates but indirectly impacts them through Federal Reserve interest rate policies.

•   Historical data shows a correlation between inflation rates and mortgage rates.

•   Inflation impacts adjustable-rate mortgages more directly than fixed-rate mortgages.

•   Homebuyers and homeowners should consider current economic conditions when making mortgage decisions.

•   Inflation is only one factor to take into account when deciding whether or not to purchase a home.

What Is Inflation?

To understand how inflation and mortgage loan rates are connected, it helps to first understand what inflation is in the first place: a general increase in prices and a related drop in the purchasing value of your hard-earned money.

When prices rise but paychecks remain steady, people feel the pinch of inflation. The Federal Reserve, the central bank of the United States, tracks inflation rates and trends using several key metrics, including the Consumer Price Index (CPI), to determine how to direct monetary policy. A target inflation rate of 2% is considered ideal for maintaining a stable economic environment over the long run, and in 2024, many borrowers were relieved to see the inflation rate — which trended upward in 2022 — ebb. By the end of 2024, it had come close to the target goal.

Types of Inflation

Several factors may cause inflation. Supply and demand play a large role in how prices rise.

Supply

In supply-side inflation, also known as cost-push inflation, prices rise due to supply challenges. When the cost of labor or raw materials used to make a product increases, prices often follow. Homeowners saw this during the COVID-19 pandemic when building materials were in short supply and renovation projects became much more expensive. More recently, talk of tariffs on imports from China, Mexico, and Canada has caused economists to warn of inflation.

Demand

Demand-pull inflation happens when there is increased demand for a product or service. Sometimes this is a natural outgrowth of demographic patterns, such as when a large population group moves into a new lifestage. Anyone in the home-buying market can relate to this: When there are lots of homebuyers and limited inventory of properties for purchase, sellers can command higher prices.

Inflation Spiral

An inflation spiral — also known as a wage-price spiral — happens when wages rise in reaction to price increases. Increased wages in turn cause elevated demand for goods and services. It can be hard for economic policymakers to break this back-and-forth pattern.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

Questions? Call (888)-541-0398.


How Are Inflation Rates Related to Interest Rates?

Once you understand the basics of inflation, you might wonder: What does all this have to do with interest rates on a home mortgage? As we’ve said, inflation rates don’t have a direct impact on mortgage rates, but there can be indirect effects because of how inflation influences the economy and the Federal Reserve’s monetary policy decisions.

The Federal Reserve does not set mortgage rates. Instead, the central bank sets the federal funds rate target, the interest rate that banks use when they lend money to one another overnight. A Fed increase in this short-term interest rate often pushes up long-term interest rates for U.S. Treasuries.

Fixed-rate mortgages are tied to the yield on those 10-year U.S. Treasury notes, which are government-issued bonds that mature in a decade. When the 10-year Treasury yield increases, the 30-year mortgage rate tends to do the same.

So in terms of what affects fixed-rate mortgage rates, movement in the 10-year Treasury yield is the short answer. Higher yields can mean higher rates, while lower yields can lead to lower rates. But overall, inflation rates, interest rates, and the economic environment can work together to sway mortgage rates at any given time.

Higher rates can make borrowing more expensive while also providing more interest to savers. People borrowing less and saving more can have a cooling effect on the economy. When the economy is slowing down too much, however, the Fed may lower interest rates to encourage borrowing and spending.

If you track the average 30-year fixed-rate mortgage rate and the average annual inflation rate, you’ll see that the percentages often move more or less in concert. Here’s a look at the past 22 years and some key dramatic years before that.

Year

Average Inflation Rate

Average Mortgage Rate

2024 2.9 6.72
2023 3.4 6.81
2022 8 4.87
2021 4.7 2.96
2020 1.2 3.11
2019 1.8 3.94
2018 2.4 4.54
2017 2.1 3.99
2016 1.3 3.65
2015 0.1 3.85
2014 1.6 4.17
2013 1.5 3.98
2012 2.1 3.66
2011 3.2 4.45
2010 1.6 4.69
2009 -0.4 5.04
2008 3.8 6.03
2007 2.8 6.34
2006 3.2 6.41
2005 3.4 5.87
2004 2.7 5.84
2003 2.3 5.83
2002 1.6 6.54
2001 2.8 6.97
2000 3.4 8.05
1981 10.3 16.63
1980 13.5 13.74
1979 11.3 11.20
1978 7.6 9.64
1975 9.1 9.05
1974 11.0 9.19


*In October 1981 the rate hit a historical peak of 18.45%
Sources: Consumer Price Index and Freddie Mac

Inflation Trends for 2025

In September 2022, the U.S. inflation rate hit 8.2%, well beyond the Federal Reserve’s 2% target inflation rate. While prices for consumer goods and services were up almost across the board, the most significant increases were in the energy category. Many consumers noticed inflation because of increased food prices: In the year ending August 2022, prices for food at home increased 13.5%, the largest 12-month percentage increase since the year ending March 1979. Prices for food away from home increased 8%.

Rising inflation rates in 2021 and 2022 are thought to have been driven by a combination of increased demand for goods and services, shortages on the supply side, and higher commodity prices due to geopolitical conflicts. The Federal Reserve responded by raising interest rates — 11 times between March 2022 and October 2023. Mortgage interest rates also trended north to 7.00%. But the Fed’s measures appear to have had the desired result, putting the brakes on inflation, although it remained above the target. By early 2024, inflation seemed to be moderating when compared to recent years.

Recommended: Understanding the Different Types of Mortgage Loans

Is Now a Good Time for a Mortgage or Refi?

There’s a link between inflation rates and mortgage rates. But what does all of this mean for homebuyers or homeowners? Although interest rates have remained stubbornly between 6.00% and 7.00% for the last couple years, mortgage rates are still below average when viewed through a historical lens. Moreover, the latest market research predictions in early 2025 indicate that mortgage rates may hover around an average of 6.50% in 2025 and drop only marginally in 2026. So if you are thinking about a refi or home purchase, it pays to take that forecast into account.

If you can get a reasonable mortgage rate, buying now with a fixed-rate mortgage could help you lock in that deal. Going with an adjustable-rate mortgage could allow borrowers to benefit from future rate drops, though if interest rates rise, an adjustable rate would follow.

If you own a home and are considering refinancing your existing mortgage, the math gets a bit trickier. You would be wise to determine your break-even point — when the money you save on interest payments matches what you’ll spend on closing costs for a refinance.

To find the break-even point on a refi, divide the closing costs by the monthly savings. If refinancing fees total $3,000 and you’ll save $250 a month, that’s 3,000 divided by 250, or 12. That means it’ll take 12 months to recoup the cost of refinancing.

If you refinance to a shorter-term mortgage, your savings can multiply beyond the break-even point. A shorter term means you will pay less interest over the life of the loan, although monthly payment amounts will be higher than they would be for a 30-year loan.
Keep in mind that the actual rate you’ll pay for a purchase loan or refinance loan will depend on things like your credit score, income, and debt-to-income ratio.

💡 Quick Tip: Lowering your monthly payments with a mortgage refinance from SoFi can help you find money to pay down other debt, build your rainy-day fund, or put more into your 401(k).

The Takeaway

Inflation abated somewhat by the end of 2024, but 2025 presents some unknowns. Homebuyers can likely expect continued variation in interest rates. It’s true that buying a home or refinancing when mortgage rates are lower could mean substantial savings over the life of your loan. But if you’re ready to buy and your finances are in good shape, it doesn’t make sense to wait for slight changes in interest rates — if you’re ready to own your own home, the time is right for you.

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

What effect does inflation have on interest rates and why?

If inflation rises, interest rates typically follow. The opposite is also true (when inflation ebbs, interest rates usually fall).

Does inflation affect fixed-rate mortgages?

Inflation will not affect the amount of your monthly payment if you have a fixed-rate mortgage because your interest rate remains steady over the life of your loan. Your overall budget may feel tighter when prices of things like groceries and gas rise, but your actual mortgage payment will stay the same.

Does inflation affect adjustable-rate mortgages?

Inflation may have an impact on your monthly mortgage payment if you have an adjustable-rate mortgage. With this type of mortgage, your interest rate usually adjusts every 6 months or every year (after an initial rate period which might be 5, 7, or 10 years, for example). How much the rate can change will depend on your loan agreement.

Does inflation affect housing prices?

Inflation generally means an upward trend in housing prices, in part due to the rising cost of building or refurbishing a home. But this is not always the case. Sometimes the high overall cost of goods and services leads would-be homebuyers to stay out of the market. Less demand might lead to a drop in home prices. Over decades, however, home prices have increased at a rate greater than the rate of inflation.


Photo credit: iStock/Max Zolotukhin

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.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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