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A wedding day is typically a celebration you’ve dreamed of and eagerly anticipated, but it can also be a major expense. If you’re wondering if you should finance your wedding, here is some guidance when it comes to making that decision. From payment plans to personal loans and everything in between, options abound for making your big day happen.

Understanding Wedding Costs Before Making a Plan

SoFi’s most recent survey found that the median cost of a wedding is $10,000, and when you look at average costs, you may see figures like the $36,000 price tag shared by Zola, a wedding registry site. Of course, prices can vary tremendously depending on what you plan: A destination wedding or one held in a big city with 300-plus guests will likely be a much bigger expense than having 50 of your nearest and dearest gather in your grandmother’s beautiful backyard flower garden.

Breaking Down Wedding Expenses by Category

Here’s a look at some of the key contributors to the cost of a wedding, according to The Knot, a wedding site:

•   27%: Venue and rentals

•   24%: Catering, cake, and drinks

•   10%: Photography and video

•   9%: Floral and decor

•   8%: Music

•   6%: Clothing and beauty

•   5%: Wedding rings

•   4%: Wedding planner

•   3%: Guest entertainment

•   2%: Transportation

•   1%: Stationery

•   1%: Officiant

Setting a Realistic Budget

To set a realistic budget, it’s wise to delve into some real-world prices and see what’s affordable given your financial situation. You may find that swapping out a swanky hotel ballroom for local, loft-style event space can help you save money, or limiting the guest list to 75 people instead of 175 can be a route to having an affordable wedding of your dreams.

Developing a spreadsheet that lists out your total budget and how much you will spend on each category is a helpful exercise. Also consider what you might be able to borrow or what friends and family can help with (perhaps they can handle flowers and decor).

An online wedding cost calculator can help you set a realistic budget for your wedding, too.

8 Ways to Pay for Your Wedding

There are many variables that can affect the average cost of a wedding, including the time of year you say “I do,” the day of the week, the number of guests, the reception venue, and a host of other factors (such as unexpected wedding expenses).

Whatever your budget may be, here are some ways to fund your big day.

1. Personal Savings

Perhaps you have already saved up a nice bundle of cash that you can put toward your wedding. Or maybe you have just gotten engaged and have a year or two to save up enough money for your wedding. Using this kind of money to finance your wedding helps you avoid interest charges. Keep the cash in a high-yield savings account to help it grow via the power of compound interest.

2. Wedding-Specific Savings Plan

You can also set up a wedding-specific savings plan. This means you have a dedicated amount into which you will regularly deposit a sum of money or use recurring automated transfers to stockpile cash in it. This can help you save enough money for your ceremony and celebration.

3. Family Contributions

Depending on your family situation, your parents and other relatives may be able to pay for some or all of your wedding expenses. It used to be common for the bride’s parents to pay for the wedding, but today, it’s often a matter of the family making a contribution toward the total cost, if at all.

4. Personal Loans

Personal loans are typically unsecured loans that can be used for almost any purpose. The interest rate charged can be lower than those of credit cards, and they offer a lump sum of cash (usually between $1,000 and $50,000 or even $100,000) that is then repaid in installments over a few or several years.

Some lenders specifically offer wedding loans, tailored to the needs of couples planning their big day.

5. Credit Cards

A convenient way to finance wedding costs can be breaking out your plastic. While this is a quick and easy way to pay vendors, be sure you are aware of and can afford this kind of high-interest debt. Also stay aware of your credit limit. Financial experts advise that having a balance that is more than 30% of your credit limit can negatively impact your credit score.

6. Wedding Funds or Registries

You can crowd-source money for your “I do” day by opening a wedding fund. Usually, the couple lets people know that they would prefer to receive cash vs. physical gifts from guests by directing invitees to a cash registry. This money can then be used to pay for wedding costs.

7. Side Hustles and Extra Income

Not everyone has the time or energy for a side hustle, but working a part-time gig can help you pump up your savings for your wedding. Whether that means selling your service as a pet photographer or driving a rideshare every other weekend, these pursuits can help you bring in extra cash to pay for a wedding.

You might also sell stuff you no longer want or need to bring in some additional money.

8. Vendor Payment Plans

You may find that some vendors, such as your event space or caterer, offer payment plans, allowing you to put money toward your debt over time. Check the details carefully to be sure that the interest rate and fees are fully understood and affordable.

The Pros of Financing a Wedding

Here are some of the upsides of financing a wedding:

•   You get your day with all the bells and whistles that you’ve dreamed of. You have the wiggle room to have more guests, a highly sought-after DJ or band, and food that will still be talked about on your anniversary. Mission accomplished in having a special day that will last a lifetime of memories, even if you don’t have all the cash waiting in the bank.

•   You might be able to borrow enough money to have a relaxing honeymoon, too, which might be nice after the stress of wedding planning.

•   You won’t deplete your savings to pay for your wedding. Starting your life together without an emergency savings account can be stressful.

The Cons of Financing a Wedding

Next, here are the downsides of financing a wedding:

•   When the wedding is long over, that monthly loan payment is still owed. Depending on the amount and term of the loan, that can be a big commitment.

•   Interest rates for loans and lines of credit typically vary based on the borrower’s credit rating and other factors. If you don’t qualify for favorable interest rates, you could end up paying a decent amount in interest over the life of the loan.

•   Taking out a loan also increases your debt-to-income (DTI) ratio. If you are planning on near-future large purchases that will require another loan, like a mortgage, having a high DTI ratio might make it more difficult to qualify for future loans, or might affect the rates you qualify for.

Creating Your Wedding Payment Strategy

Paying for wedding expenses can require a significant amount of cash, so it can be wise to be strategic about how you’ll pay your bills. Here are a couple of ideas:

Mixing Different Payment Methods

You don’t have to go all in on just one payment plan. For instance, if your caterer offers a super-low interest rate on their payment plan, you might want to sign up for that, and then use a personal loan to pay for other expenses, such as the wedding dress, rings, music, and photography.

As with any kind of loan or line of credit, but sure you understand the fees and interest rate (and whether, say, prepayment penalties are applicable). Either a lower interest rate or a shorter term may save money in the long run. A personal loan calculator or amortization table can help with this analysis, so you know exactly how much you are spending.

Timeline Considerations

Another important consideration when deciding on financing is how long of a run-up you have to the wedding itself. If you are planning on getting married in, say, two years, you could have a good amount of time to budget and save.

If, however, you are planning on a short engagement, then financing your wedding or asking for cash gifts might better suit your timeline.

Recommended: A Guide to Unsecured Personal Loans

Tips for Reducing Wedding Costs

If you’re having second thoughts about the cost of your wedding and how to afford it, know that with wedding planning, there’s usually a way to reduce expenses.

Off-Season and Weekday Discounts

The high season for weddings is usually late spring through fall. That’s when demand and prices are highest. You may be able to save big by booking a winter wedding or early spring one.

Similarly, you’ll find that costs tend to peak for weekend weddings. If you can swing, say, a Thursday night instead of a Saturday, you could save a significant amount.

DIY Elements

Think about how you could save money by DIY-ing some aspects of your wedding vs. paying a professional. Also, you might tap friends and family to contribute. For instance, if you have a friend who loves to bake, perhaps they would make your cake. Or if you have a friend with a flair for photography, they could shoot your pictures as a gift to you and your partner. If you have a cousin who’s in a band, they might play at your wedding for free or a reduced rate. Perhaps your family members would be happy to create centerpieces and bouquets from affordably sourced flowers. Think freely, and call in those favors!

Any of these ideas will help you save money and avoid financing your wedding’s full cost.

Prioritizing What Matters Most

There’s no law that you have to have a traditional wedding. If what matters most to you is having a wedding that involves dancing till dawn, or having 200 friends and family members with you as you say your vows, go ahead, but then perhaps do a potluck meal so you don’t have to shell out for a huge catering bill, too.

If you’re a foodie, maybe your wedding celebration could be a small dinner in a private room at your favorite restaurant after the ceremony. By prioritizing what matters most to you on your special day, you can have a wonderful wedding without landing in deep debt.

How to Avoid Wedding Debt Altogether

If you are looking for some inspo on how to avoid wedding debt, consider these possibilities:

•   Postpone the wedding. You might be able to avoid borrowing altogether by postponing the wedding to give yourself time to save the money to pay for it. Cutting unnecessary expenses might free up some money in your budget. Or earning extra money by taking on a side hustle might be a good way to add to your savings.

•   Use a zero-interest credit card. Using a credit card to pay for wedding expenses might be another option. While a personal loan might offer a lower rate than a credit card, you might find credit card offers with low introductory rates — perhaps even 0% — for a limited time. If you’re confident that you can pay the card off in full before the introductory rate ends, this could be an attractive option.

•   Ask your family to contribute. Asking parents for money might not be the most appealing option, but it might be a worthwhile consideration. Even though the average age of newlywed couples is rising, which might mean more couples are established financially before they marry, it’s still common for the couple to have help paying for the wedding.

•   Elope. If your priorities are saving for a down payment on a house or paying off college debt, maybe you are the kind of person who would be comfortable eloping or having a city hall ceremony and Champagne with just a few of your nearest and dearest. That can definitely be a way to avoid debt from financing a wedding.

The Takeaway

Your wedding is a special day, but it can be a very expensive one. Think carefully about how to budget for and finance your wedding, which can often cost five figures. Some ideas are saving the money, asking loved ones to contribute, using vendor payment plans, and taking out a personal loan.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

What’s the best way to pay for a wedding?

There is no one best way to pay for a wedding. Your personal finances and the kind of wedding you are having will play a role in deciding what works best. By saving up for a wedding or asking for help financing it, however, you may be able to avoid some or all of the interest charges you’ll encounter if you take out a loan or use a credit card.

How far in advance should we start saving for our wedding?

A wise way to figure out when to start saving is to calculate how much your wedding will cost, subtract how much relatives might contribute, and then divide that sum by how much you can save every month. So if you want to raise $10,000 and you and your partner can put aside $500 a month, then it would take 20 months to accumulate the funds needed.

Is it common for parents to pay for weddings today?

It is less common than in the past, but many parents do pay for weddings or at least make a contribution to the cost. Since the age at which people marry is rising, it’s become more common for the couple to have the financial means to pay their own way.

How can we ask for money instead of gifts?

You can put the word out tactfully among friends and family, or use a wedding website that clearly shows your registry preference is cash vs. gifts. Zola, Honeyfund, The Knot, and Joy are among the options you may find. Compare fees and features to find the best fit.

Where should I keep a wedding fund?

If you’re saving money towards a wedding, it’s wise to keep it in a high-yield savings account, where it’s safe, accessible, and earning interest.

Photo credit: iStock/PeopleImages

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Buying a home is a big milestone, but with hefty housing prices and high mortgage rates, homeownership can feel out of reach for many Americans. And even if you can afford the down payment and monthly mortgage for your dream home, you may not have strong enough credit to qualify for the loan. So what can you do?

Adding a qualified cosigner to your mortgage is a great way to improve your approval odds when buying a house, but there are several risks the cosigner takes on when they help you out. Below, we’ll walk you through how cosigning a mortgage works, what the requirements are, and the pros and cons.

What Is a Mortgage Cosigner?

A mortgage loan cosigner is someone (usually a relative or close friend) who signs the mortgage alongside the primary borrower but has no ownership interest in the home (and does not live in the same home). Instead, the cosigner simply agrees to take full financial responsibility for the mortgage should the primary borrower miss payments or stop paying entirely.

This is a big deal: The lender has every right to come after the cosigner if the borrower defaults on the mortgage. The cosigner may have to pay missed payments and late fees, and in most cases, the lender is able to use debt collection methods (such as a lawsuit or garnishing wages) on the cosigner without first trying to collect from the borrower.

Having a mortgage cosigner can make a big difference in your approval odds if you don’t have a strong enough credit score to qualify for a mortgage otherwise. However, there are clearly tremendous risks to the cosigner that you should take seriously as the borrower.

How Cosigning a Home Loan Works

Whether your credit score is so low that you can only qualify for a mortgage with an extremely high interest rate — or so low that it precludes you from qualifying for a mortgage altogether — you can get a cosigner on your mortgage loan to help smooth your path.

A well-qualified cosigner should have a strong credit score and a low debt-to-income ratio (DTI); that is, they should make significantly more money than they pay in debts each month. Adding this person, such as a parent, spouse, grandparent, or sibling, can suddenly make your application way more attractive to a mortgage lender. After all, the lender knows that if you fall behind on payments, your cosigner is well within their means to take over.

Assuming you are approved for a mortgage with a cosigner and close on the home, the mortgage will proceed as usual. You’ll move into the house, and the cosigner will continue living separately. They have no further responsibility — unless you stop making payments.

Because your failure to pay can negatively impact your loved one’s credit score and finances — and thus your relationship with that relative or friend — it’s imperative that you do everything within your power to stay on top of mortgage payments. Communicate with your cosigner regularly about the mortgage, and let them know the instant you suspect you’ll struggle to make a payment.

Conventional Mortgage Cosigner Requirements

If you’re using a cosigner to get a conventional mortgage, you’ll still need to meet basic conventional loan requirements. For instance, you’ll still need a minimum credit score for a mortgage with a cosigner of 620 — but if your credit score isn’t strong enough, you can rely on your cosigner’s high credit score to increase your approval odds.

There are a few other conventional mortgage cosigner requirements to keep in mind:

•   Down payment: If you’re using a cosigner, you still must use your own funds to make at least 5% of the down payment (in most circumstances).

•   DTI: Using only your income (but the debt of both you and your cosigner), your DTI must be no greater than 43%.

•   Loan-to-value ratio: When using a cosigner, the loan-to-value ratio (LTV), combined loan-to-value ratio (CLTV), and home equity combined loan-to-value ratio (HCLTV) usually cannot exceed 90%.

FHA Loan Cosigner Requirements

Similarly, FHA loans, backed by the Federal Housing Administration, have special cosigner requirements for a mortgage to bear in mind. FHA loans are ideal because you only have to put 3.5% down, which makes them great for first-time homebuyers who have limited savings to rely on.

However, if you’re adding an FHA loan cosigner, the down payment requirement jumps to 25% — unless the cosigner is a family member. In that case, the down payment remains at 3.5%.

Can parents cosign an FHA loan? Yes. But fortunately, the FHA is pretty liberal with the term “family member,” and also allows it to include:

•   A child or grandparent (including step and foster)

•   A spouse or domestic partner

•   An adopted child or foster child

•   A sibling (including step)

•   An aunt or uncle

•   An in-law (son, daughter, mother, father, brother, or sister)

The cosigner (which the FHA calls a “nonoccupying co-borrower”) must be a U.S. citizen or have a principal residence in the country.

Recommended: Guarantor vs. Cosigner: What Are the Differences?

Benefits of Mortgage Cosigners

The benefits of a mortgage with a cosigner belong primarily to the borrower. Here are a few pros of mortgage cosigners to consider:

•   Improved approval odds: Adding a qualified cosigner to your mortgage increases your approval odds, assuming the cosigner has a healthy credit score and stable income. This can be especially helpful for borrowers with low credit scores or unconventional income (such as self-employment income).

•   Lower interest rate: Even if you can qualify for a mortgage without a cosigner, you might face high interest rates. Adding a well-qualified cosigner could help you secure a lower mortgage interest rate, which means less money spent over the life of the loan and a lower, more manageable monthly payment.

•   Larger loan: You may be able to qualify for a more expensive house with the help of a cosigner. This could be crucial if you live in an area with a high cost of living (and thus more expensive real estate).

Drawbacks of Mortgage Cosigners

As you’d imagine, the cons primarily apply to the cosigner, not to the borrower. Here a few cons of mortgage cosigners to consider:

•   Huge financial risk: Cosigning a mortgage poses a huge financial risk. If the borrower stops making payments, you’re on the hook. The lender could potentially sue you or garnish your wages to cover the payments. Plus, late payments by the borrower don’t only impact their credit score; the cosigner’s credit score will take a hit, too.

•   Difficulty getting other loans: The mortgage you cosign will impact your debt-to-income ratio. Until that mortgage is paid off (which could take three decades), your DTI might be too high for you to qualify for your own loans, such as a mortgage on a new house, a personal loan, or a car loan.

•   Relationship issues: If the borrower isn’t taking enough responsibility for their home loan, you’ll have to have some difficult conversations. Disputes over money could even end your relationship (and yes, you’ll still be on the hook for the mortgage, even if you and the borrower no longer speak).

Recommended: Refinance Your Mortgage and Save

Other Factors to Consider When Cosigning a Mortgage

Planning to cosign a mortgage? Here are a few things to consider:

•   Cosigner release: Read the contract carefully to understand what your options are for eventual cosigner release. Some lenders may include a clause outlining cosigner liability release; if the primary borrower meets the lender’s strict requirements (credit score, income, history of on-time payments), you may be able to request to be released from the loan.

•   Credit monitoring: Regularly check your credit report for missed payments. While you can communicate with the borrower about how the payments are going, it’s always good to verify with an unbiased resource.

•   Long-term commitment: Remember, mortgages typically last between 15 and 30 years. Cosigning one is a long-term commitment. Make sure cosigning won’t impede any of your financial goals during that time period, and think carefully about whether the borrower is responsible enough to manage a loan of this magnitude for that long.

The Takeaway

Adding a cosigner to a mortgage loan can improve the approval odds if your credit score isn’t strong enough to get approved on your own. A cosigner can also help you secure a larger loan and/or a lower interest rate. However, cosigners assume a major financial risk when getting involved — and disagreements over money can easily end even the strongest of relationships. Proceed with caution.

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.

FAQ

Who can be a cosigner on a mortgage?

Technically, anyone can cosign on a mortgage, but because it’s a big financial risk, people usually rely on family members or very close friends. For FHA loans, cosigning with a family member is ideal; using a cosigner who is not a relative means you have to put 25% down, instead of 3.5%.

Do I need my parents to cosign a home loan for me as a first-time homebuyer?

You do not need your parents to cosign a home loan as a first-time homebuyer. If you have a strong credit score and enough income to handle the loan on your own, you can proceed without a cosigner. But if you need help with your first home purchase, asking a parent to cosign is an option.

Can retired parents cosign a mortgage?

Yes, retired parents can cosign a mortgage. Lenders analyze cosigners’ credit scores, debts, and incomes when making an approval decision. A retired parent’s income will simply look different from a working parent’s income; for instance, a retired parent’s income might include Social Security payments, investment income, a retirement account distribution, or a pension.

Does having a mortgage cosigner affect my home loan approval chances?

Adding a mortgage cosigner can and should affect your home loan approval chances. The whole reason to add a cosigner is to use their stronger credit score and higher income to make you a more attractive applicant and thus improve your approval odds — perhaps at a lower interest rate or for a larger loan amount.

Is it possible to remove a cosigner from a mortgage in the future?

While challenging, it’s technically possible to remove a cosigner from a mortgage in a few ways. Assuming your own credit and income are strong, you can just ask the lender to remove the cosigner. But they won’t always say yes. Your next move, then, is to refinance the mortgage without the cosigner or wait until you sell the property, at which point you can buy your next home without a cosigner.

How do cosigners on home loans affect taxes?

Borrowers get to deduct mortgage interest and property taxes when filing their tax returns, but you as the cosigner don’t reap these benefits. Plus, if you help the borrower by giving them money for the down payment, it may be subject to the gift tax on your tax return.

Can you have a cosigner on a VA mortgage?

Yes, you can have a cosigner on a U.S. Department of Veterans Affairs loan, but unlike other types of mortgage cosigners, the cosigner must live with the borrower in the home. In addition, the cosigner needs to be another qualifying veteran, service member, or a spouse of a qualifying buyer.

What’s the difference between a cosigner and a co-borrower?

Both cosigners and co-borrowers sign a mortgage with the primary borrower to help strengthen the application; they’re also both on the hook financially should the primary borrower not keep up with payments. However, cosigners only guarantee the loan, but they do not live in the home, nor do they have any ownership in the home; co-borrowers on a mortgage share ownership of the home, and their name appears on the title.

Photo credit: iStock/tonefotografia

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SOHL-Q225-036

Cosigning a mortgage is a tremendous thing to do for a loved one. Your income and credit history can help someone whose finances aren’t on solid footing still get the house they want (or need). But being a cosigner can also be disastrous for your finances: Any missteps by the borrower could impact your credit score and ultimately leave you on the hook for paying the mortgage.

So once the paperwork is signed and the borrower is making progress on repayment, can the cosigner be removed from the mortgage? The path isn’t easy, but there are ways of doing it. Below, we’ll walk you through how to remove a cosigner from a mortgage in a few different ways.

Ways to Remove a Cosigner from a Mortgage

It’s a common scenario: At one point in time, you cosigned a mortgage but no longer wish to be on it. Maybe you helped out a loved one who was a first-time homebuyer and who needed assistance getting a loan. And now, perhaps to more easily secure a loan for yourself, or maybe just for financial peace of mind, you want to be relieved of your responsibilities. Here’s how to remove yourself as a cosigner from a mortgage — but fair warning, it’s not easy. (Before following any of these steps, make sure you are in fact a cosigner vs. a guarantor; the two are somewhat different.)

1. Mortgage Refinancing

The easiest way to remove a cosigner from a mortgage is to have the primary borrower refinance it. As the cosigner, you can’t force this; the borrower is the only one who can choose to refinance, and they have to meet mortgage refinancing eligibility requirements to do so.

When can a cosigner be removed from a mortgage? The timing is right if the borrower:

•   Needs a strong enough credit score to qualify on their own

•   Needs a steady enough (and high enough) income to qualify on their own

•   Must be willing to refinance — including paying mortgage refinance fees, such as closing costs

If the borrower is unable, or unwilling, to get a mortgage refinance, you won’t be able to remove yourself as cosigner using this strategy.

Recommended: Cosigner Responsibilities on a Loan

2. Mortgage Loan Assumption

How to get a cosigner off a mortgage loan without refinancing? If a mortgage is assumable, it means you can sign it over to another qualified borrower, with the same terms and interest rates. This is a potential tactic when selling your home during times of high mortgage interest rates; if you have a low interest rate, you can make your home more attractive to buyers by letting them assume the loan rather than get a new loan at a higher rate. (The buyer will also likely have to take out a separate loan to pay the difference between the remaining mortgage balance and the sale price.)

But assumable mortgages can also be a handy tool for mortgages with co-borrowers and cosigners. For instance, spouses or domestic partners who plan to separate but are co-borrowers on a loan might be able to use an assumable mortgage to simply put the mortgage fully in one person’s name. If the borrower on a cosigned loan is willing, this could also be a way to get the cosigner off a mortgage.

Not all mortgages are assumable, but government-backed loans, such as FHA loans or VA loans are. Even so, the lender has to approve the mortgage assumption, and the borrower for whom you cosigned has to be on board, so it’s not a done deal.

3. Requesting a Mortgage Cosigner Release

In some instances, a loan may have language in the agreement about a “cosigner release,” which simply means the cosigner can ask to be removed if certain conditions are met (though the lender can still say no). This is more common for other types of loans, such as student loans, but you can absolutely ask the mortgage lender if they’d include a cosigner release in the contract before signing on the dotted line.

Even if there’s nothing in the mortgage agreement about cosigner release, you can always reach out to the mortgage lender and ask to be removed. While it’s a long shot (there’s really no benefit to the lender), it could work if the borrower has strong credit, few debts, and a lot of income.

Even if there’s nothing in the mortgage agreement about cosigner release, you can always reach out to the mortgage lender and ask to be removed. While it’s a long shot (there’s really no benefit to the lender), it could work if the borrower has strong credit, few debts, and a lot of income.

4. Selling the House

Finally, at any point, the borrower can sell the home. The proceeds from the sale first go toward the existing mortgage to pay it off before they can pocket any profit. And as soon as that mortgage is paid off, you’re home free (or home-loan free, rather).

How to Remove Yourself as a Cosigner on a Mortgage

No matter which tactic you take — refinancing, loan assumption, cosigner release, or selling the house — you as the cosigner have little control over the process. Instead, the borrower has to take action, and in most cases, the lender has to agree.

Here are some tips if you want to be removed from a mortgage you cosigned:

•   Help the borrower improve their credit score: You could help the borrower make a budget and set up automatic payments so they can stay on top of on-time payments for all their bills.

•   Help the borrower increase their income: Tailor your help to where the borrower is on their career journey. If the borrower is fresh out of college, help them improve their resume or make connections that could lead to a job. If the borrower is already established in a career, provide coaching for how they might negotiate a raise, or help them find a side hustle or part-time job.

•   Have a frank discussion: Because the borrower essentially holds all the power, make sure they understand why you want to be removed from the loan. Help them understand the financial pressures you may be facing. If your relationship is solid, the borrower should hopefully want to do what they can to remove you from the loan.

Recommended: Does Being a Cosigner Show Up on Your Credit Report

Factors to Consider Before Removing a Cosigner from a Mortgage

Before you attempt to remove yourself as a cosigner from the mortgage, consider a few factors:

•   The borrower’s situation: As much as you may want to take your name off the mortgage, you won’t get very far if the borrower doesn’t have a good credit score and steady income. In addition, if the borrower has no interest in removing the cosigner, there’s very little you can do.

•   Lender policies: Some mortgage lenders may not allow cosigner release. While it doesn’t hurt to ask, this is not a common practice among lenders.

•   Assumable mortgages: Not all mortgages are assumable. While a government-backed loan is typically assumable, most conventional mortgages are not.

•   Costs: If the primary borrower could theoretically refinance the mortgage on their own (and is willing), keep in mind there will be closing costs. You may need to step in and help the borrower cover these costs if that’s the only thing preventing them from moving forward.

The Takeaway

Cosigning a mortgage is a generous act for a loved one, but it also puts your finances in jeopardy. Luckily, there are ways to remove yourself, as long as the borrower is willing and able. And if you’re a homeowner wondering can you remove a cosigner from a mortgage, the answer is yes. The easiest path forward is refinancing the mortgage, but you can also explore strategies such as cosigner release, mortgage assumption, and when all else fails, selling the 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.

FAQ

What is a cosigner release on a mortgage?

A cosigner release is an option in the mortgage agreement that allows a cosigner to request to be removed from the mortgage, usually once the borrower has improved their credit score, increased their income, and made a series of on-time payments. Cosigner releases are uncommon for mortgages; it’s more likely to find a cosigner release on a student loan.

Is it easy to remove a cosigner from a mortgage?

Releasing a cosigner from a mortgage is not easy. The borrower must be willing to take action, and they’ll need to have strong credit and steady income. Even then, not all lenders will allow for the cosigner to be released or the mortgage to be assumed by the primary borrower. The easiest path forward is for the primary borrower to refinance the mortgage, if they can qualify on their own.

Can a cosigner be removed from a mortgage without refinancing?

Yes, a cosigner can be removed from a mortgage without refinancing, though refinancing is the easiest path forward. Alternate options include asking for a cosigner release; having the primary borrower assume the mortgage; and selling the house to pay off the mortgage

When can a cosigner be removed from a mortgage loan?

A cosigner can be removed from a mortgage loan when the borrower meets all the requirements to qualify on their own. Even if a borrower can qualify, however, lenders can reject requests for cosigner release and mortgage assumption. Borrowers and cosigners may have more luck by having the borrower refinance on their own.

Are there any fees associated with removing a cosigner from a mortgage?

There may be fees associated with removing a cosigner from a mortgage, depending on the route you take. The easiest way to remove a cosigner is to refinance the mortgage without them. However, there are mortgage refinance costs to consider, including closing costs, which are usually 2% to 5% of the new mortgage; loan application fees; title search; and a home appraisal. Similarly, assuming a mortgage may include a one-time funding fee.

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The average wedding currently costs $36,000, which is certainly a significant investment. Whether you plan to spend that much, less, or more, a wedding cost calculator can help you manage the price tag and stay on budget.

Read on for a breakdown of the costs you can expect as you prepare for your big day.

What Does the Average Wedding Cost?

As of 2025, the average wedding cost is $36,000 according to Zola, the wedding registry site. However, according to SoFi’s latest research, the median wedding cost, which may give a more accurate figure, was $10,000.

Of course, each wedding and its costs will vary. For instance, one couple might go all-in on a destination wedding with all the trimmings, held at a five-star tropical resort, while another might hold a backyard ceremony with cake and a friend’s band providing the music. Prices will vary with location, the number of guests, and many other factors. Currently, the typical cost per person of a wedding is $284, according to The Knot, a wedding website.

How the Calculator Estimates Wedding Costs

A wedding cost calculator uses average wedding costs to help couples break down the expenses they can expect to encounter as they plan their wedding. This budgeting tool can assist couples and their families in prioritizing how they want to spend their money. (Is a designer dress a must? Is a buffet or sit-down dinner a better choice? How many guests can you really afford?)

You also can use a wedding calculator/budget as a checklist to ensure you’ve covered all the details, so there aren’t any surprises (or unexpected wedding expenses) as you close in on the big day.

Recommended: Is It Smart to Finance a Wedding?

Wedding Cost Estimate Example

Until you start making calls and getting price quotes, it will be challenging to get even a rough estimate of how much your wedding will cost in total. But the sooner you start filling in some of the blanks on your budget, the sooner you’ll be able to prioritize where you want your money to go — and get a better idea of what the final bill will be.

Here’s an example of what a couple trying to determine a budget between about $14,000 and $24,000 and a guest list of 50 might come up with.

Depending on your situation, you might have saved enough to pay for the wedding yourselves, have received funds from family and friends, or be looking into a personal loan that can be used to finance a wedding.

The Takeaway

A wedding is a cause for celebration, but the costs can be significant. As of 2025, the average cost has been tallied as $36,000 and the median at $10,000. You can estimate and then set your budget, using a wedding cost calculator to make the math part a snap. Depending on your specific situation, you might then decide to finance the cost, perhaps with a personal loan.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

What is a realistic budget for a wedding?

A realistic wedding budget will be different for every couple. A wedding might cost $10,000 or several multiples of that, depending on the size of the wedding, the location, and other factors.

Is $10,000 a reasonable wedding budget?

Currently, $10,000 is the median price of a wedding in the U.S. You may have to be pickier about splurges than a couple with more to spend, but by setting your priorities early, you can succeed in sticking to your $10,000 wedding goal.

How do I pay for a wedding I can’t afford?

There are a few different ways you can pay for a wedding if you don’t have enough cash in the bank. One popular option is to take out a personal loan to pay for wedding expenses. Another is to apply for a credit card with a 0% introductory interest rate, which will allow you to pay off the balance interest-free for up to 18 months. Or you might consider waiting until you’ve saved enough to pay all your costs without borrowing.

What is the average cost of a wedding in 2025?

The average cost of a wedding as of 2025 is $36,000, according to the wedding registry site Zola, while SoFi research found the median price to be $10,000, which may be a more accurate estimate.

How much does a 100-person wedding cost?

According to the wedding site The Knot, a typical wedding will cost $284 per person in 2025. If you multiply that by 100, you’ll find that a 100-person wedding could cost $28,400.

What uncontrollable factors affect the total cost of a wedding?

There are several uncontrollable factors that can affect the total cost of your wedding. The cost of living in the area where you will marry can be a key contributor. For instance, the price tag in a major city will likely exceed that in a small town. Also, venue rentals, catering, and flowers can vary with location and season and the style of wedding you have. You may not be able to get these for a super-cheap price.

Photo credit: iStock/Arisara_Tongdonnoi

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.

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Despite progress, women, especially mothers, are still fighting hard to achieve equality in the workforce. According to a 2024 Bankrate analysis of Census Bureau data, mothers earn (on average) 31% less than fathers. Based on Bankrate’s calculations, this wage loss can add up to roughly half a million dollars over a woman’s 30-year career.

The financial and career impacts of motherhood are even more pronounced for women who choose not to come back to work after having a baby — or return only to later drop out. In Motherly’s 2024 State of Motherhood report (which surveyed nearly 6,000 mothers), a full 66% of moms said they were considering leaving the workforce due to the stress and cost of childcare.

Though women’s employment has recovered from the great “she-cession” of the pandemic, the gender gap in labor force participation remains significant, with 73.7 percent of mothers in the labor force compared to 94.9 percent of fathers, according to the Institute for Women’s Policy Research.

One way employers can help women gain ground — and help solve hiring and retention issues — is to tailor benefits to better fit their needs, priorities, and concerns. Companies that offer benefits packages that help address the gender gaps in financial wellness not only help women stay and advance in the workplace, but also promote a more equitable and productive workforce.

What Employers Can Do

HR pros have been working on evening gender disparity for decades, and much progress has been made. But the pandemic shed new light on the stubborn underlying inequities that continue to burden employers and female employees alike.

Employers may find that making adjustments and additions to their benefits packages can help promote more gender equity at work while also allowing them to attract and retain top female talent. Here are some strategies you may want to consider.

Recommended: Measuring the Financial Well-Being of Your Workforce

Rethink Maternity Leave

The more paid parental leave your firm can offer, generally the better. Some companies are expanding leave for birthing parents beyond 12 weeks, offering as much as 26 weeks. Others are providing additional weeks of paid leave to parents of newborns who spend time in the neonatal intensive care unit.

A generous paid parental leave program not only helps attract female workers but also increases the likelihood that your existing women employees will return to their jobs after having or adopting a child, as opposed to dropping out of the workforce —- and leaving you with a new opening to fill.

Another question to consider is whether your parental leave policies apply to all types of families and parents, such as non-birth mothers, foster parents, and parents who use surrogates. Parental benefits provide an opportunity for building your inclusive benefits strategy.

Create Real Opportunities for Advancement

For every 100 entry-level men promoted to management, only 81 women are promoted, according to McKinsey & Company’s Women in the Workforce 2024 report. With limited room for advancement and often undervalued work, many women are leaving their employers for better opportunities elsewhere.

One way to counter this trend is to offer female employees a path to advancement through education and up-skilling/re-skilling opportunities. You might do this by offering tuition assistance programs and/or access to free (or discounted) training and certification programs. This can help female employees get ahead in their careers, earn more and, in turn, achieve greater financial stability. It can also propel women into the roles of the future where they are currently underrepresented, like data science, software development, and engineering.

Other initiatives that can improve female career mobility include: formal mentorships, sponsorships, women’s employee resource groups (ERGs), leadership circles, and career coaching workshops. If your company offers these programs, you’ll want to make sure women employees know about and have easy access to them.

Address the Childcare Crisis

The pandemic brought childcare issues to the forefront as a significant workplace challenge. However, the high costs and limited availability of childcare existed before the pandemic and continue to create an impediment for women to fully participate in the workforce.

Employers can help address childcare challenges in several ways. On-site childcare is the most accommodating benefit. But on-site care is a big investment of infrastructure and resources that realistically only a small group of major employers can provide.

One alternative is to offer some type of emergency or backup child care support. Some companies do this by partnering with local daycare facilities and providing access to free or discounted childcare when a regular provider falls through. Other firms are offering employees stipends for online services, such as Care.com and SeekingSitters.com, that provide access to sitters at short notice.

Being open to and evaluating childcare support can be particularly important if you are mandating, or simply encouraging, employees to work onsite.

Consider Returnships

Many employers are dealing with labor shortages. At the same time, there is a large pool of untapped talent among women who have fully or partially left the workforce. Many of those women want to return to work but find the gaps in their resumes and lack of current skills are holding them back.

To address both problems at once, some companies are offering “returnships.” Pioneered by finance leaders Goldman Sachs and Morgan Stanley, these are internship programs that give returning caregivers the opportunity to brush up their skills or learn new ones. Returnships typically run for a few months, offering training, experience, and networking opportunities to workers — often mothers — who’ve been out of the workforce for an extended period of time.

Returnship programs not only give women who dropped out of the workforce a viable onramp, they also give employers a way to vet talent before making an official hire.

Address Student Debt

Student loan debt impacts nearly 43 million Americans and a disproportionate number are female. According to EducationData.org, women hold 64% of all outstanding student debt and, despite making higher payments than men, take an average of two years longer to pay off their student loans. Women also owe more in graduate student loan debt than men, except in professional doctorate degrees.

Student debt can have a negative impact on any employee’s financial (and overall) well-being. And right now, borrowers are feeling particularly uneasy, thanks to unknowns surrounding potential changes to federal student loan repayment plans and forgiveness programs. What is certain, though, is that student loan repayment benefits continue to grow in popularity and effectiveness. And, they may be particularly beneficial to female employees.

HR leaders will also want to keep in mind that employers can offer up to $5,250 in tax-exempt student loan repayment benefits through 2025, thanks to the CARES Act of 2020. What’s more, the recent passage of the SECURE Act 2.0 allows companies to provide employees with a match on their retirement plans for making student loan payments starting in 2024. This can be a stand-alone offering, or part of a broader employee benefits program.

Offer Flexible, Women-Friendly Financial Wellness Benefits

In Bank of America’s 2024 Workplace Benefits Report, more than half (53%) of men reported good financial wellness, compared to just 36% of women. The study also found that women aren’t feeling as secure as men about the future: 58% of women said they were confident they will be able to build sufficient retirement savings, compared to 70% of men.

High levels of student debt, trouble making ends meet, and worries about saving enough (particularly with gaps in employment) all add a disproportionate amount of stress on women. Financial stress can impact every aspect of women’s lives, including productivity and happiness at work.

HR pros can make a huge impact on women employees by offering personalized, adaptive wellness benefits, such as debt management, emergency savings, tuition savings, retirement planning programs, and financial education. These benefits can help female employees plan and save for the future, feel less stressed about their finances, increase their focus and productivity on the job, and, importantly, change their financial lives for the better.

Recommended: The Future of Financial Well-Being in the Workplace

The Takeaway

Women are a vital part of any employer’s workforce. Benefits packages designed to address women’s specific needs can help employers attract and retain talented female employees. They can also help guarantee women, especially moms, have access to an equal playing field and a secure financial future.

SoFi at Work offers employers the benefits platform, education resources, and financial counseling that can help you assemble packages that help you increase employee productivity, loyalty, and overall well-being.

Photo credit: iStock/jacoblund

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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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