Growing Wealth Archives

Jan

2025

Are Classic Cars Good Investments? Weighing the Pros and Cons

By Rebecca Lake | Growing Wealth, invest, Money & Life | Comments Off

It’s widely accepted that a car begins to lose value when it’s driven off the lot — but collectible cars can be an exception to that rule. Many types of classic cars, particularly those that are distinctive or exceptional in some way, can gain value over time.

Are classic cars a good investment? Classic car investments fall within the category of alternative investments, which include various asset classes that don’t move in sync with traditional stock and bond markets. Thus, alternative investments — including collectibles like antiques, art, and cars — can offer portfolio diversification beyond traditional stocks and bonds, and may offer high return potential for people who understand the market’s inner workings and complexities.

But similar to other types of alts, classic cars are highly illiquid, lack transparency, and investing in classic cars includes a number of risks.

Key Points

• Older cars that are distinctive, historic, or extraordinary in some way can become valuable collectibles.

• Classic cars, like other types of collectibles (e.g., sports cards, jewelry, art) are considered a type of alternative investment, meaning these assets don’t move in sync with traditional stocks and bonds.

• Like other types of alternatives, classic cars are illiquid and the market for these collectibles lacks transparency and can be hard to predict.

• Classic cars come with a number of related expenses that would-be investors need to consider, including: storage, maintenance, and insurance costs.

• Collecting cars may be profitable for those who know the market well, and are able to handle the inherent risks of this market.

What Is a Classic Car?

The Classic Car Club of America defines a classic car as a “fine” or “distinctive” automobile that is:

• American or foreign-built

• Produced between 1915 and 1948

• Generally a higher-end, limited-quantity vehicle

Other definitions of classic cars use a different time frame. For example, the California Department of Consumer Affairs defines a collector car as a special interest vehicle that’s 25 to 35 years old. Additionally, California state law specifies that collector cars must be primarily used in shows, parades, charitable functions, or historical exhibitions and not as transportation.2

Whether a car is labeled as classic, vintage, or antique typically hinges on age. Here’s how the ranges break down:

• Classic: Manufactured in 2000 or earlier

• Antique: Manufactured in 1975 or earlier

• Vintage: Manufactured between 1919 and 1930

These differences are important to know when considering a classic car as an alternative investment. SoFi does not offer any ways to invest in classic cars at this time.

Recommended: Alternative Investment Definition

Factors Affecting Classic Car Values

What makes some classic cars a good investment and others less so? Determining car value requires considerable knowledge and skill as you can’t always rely on modern vehicle valuation sites. Kelley Blue Book, for instance, is a popular valuation site but it doesn’t offer estimates for cars that are more than 21 years old.4

Numerous factors influence what a classic car is worth, including:

• Age

• Condition

• Rarity/scarcity

• Popularity

• Brand recognition

All of these factors can affect a classic car’s investment return. Older vehicles in good or excellent condition that have a rarity factor are more likely to command higher prices compared with a more recent-year vehicle that’s more common, less popular, or in poor condition.

Potential Benefits of Investing in Classic Cars

Here are some of the positives of becoming a classic car investor.

• Appreciation potential. Your everyday vehicle might lose value over time but some classic cars can gain in value as they age. In some cases it’s possible to sell a collector car for much more than what you paid for it. A 1955 Mercedes-Benz 300SLR Uhlenhaut coupe sold at auction for $143 million in 20225 — but it was one of only two such cars ever made. That situation is rare, and most types of collectible cars won’t command nine-figure prices.

• Enjoyment factor. If you’re a classic car aficionado, investing in them could be a source of pleasure. You might draw enjoyment from seeking out in-demand vehicles, restoring them to their original condition, joining collector associations, or simply driving them around town on the weekends.

• Diversification. Classic cars can offer some portfolio diversification, which could theoretically help you manage risk in your portfolio. Continued appreciation of vehicle investments can help offset slower or negative growth from the stock portion of your portfolio if market volatility increases. But appreciation is never guaranteed, no matter what type of asset is in hand.

• Tangible asset ownership. Some investors prefer assets they can see or touch in person and classic cars deliver that. You may feel more connected to your investments when you can be more hands-on with them.

Risks and Challenges of Investing in Classic Cars

Classic car investments carry risk like anything else. It’s important to have perspective on those risks before you begin investing to make sure classic cars are a good fit for you.

• Market volatility. Classic cars are worth what a buyer is willing to pay for them at any given time. If the market fluctuates, or investors are pulling back on classic car investments out of fear of a broader economic downturn, that could affect the values of the vehicles you own.

• Maintenance costs. Even if you’re not driving a classic car daily, you still need to spend time maintaining it. Maintenance costs — and potentially restoration costs — should be factored into your investment expectations as these expenses effectively lower returns.

• Storage and insurance. Once you acquire a classic car as an investment you’ll need a place to store it where it’s protected from extreme temperatures, excessive humidity, and the risk of vandalism or theft. If you don’t have such a place available at your home you’ll need to pay storage fees to park your classic car elsewhere. In addition, like most valuables, a collectible car will need to be insured.

• Authenticity concerns. Authenticity is always a concern with any type of collectible investment. Buying a classic car requires extensive due diligence on your part to ensure that what you’re purchasing is the real deal.

Recommended: Is Investing in Art a Good Idea?

Understanding Classic Cars as an Alternative Investment

Before considering whether to invest in collectible cars, it may be helpful to understand some of the basics about alternative investments in general. Classic cars — like antiques, art, sports cards, jewelry — have some of the typical advantages and disadvantages of alternative investments. Investors can access some alternatives through a traditional brokerage or online investing platform.

Potential disadvantages of alts

• Alts are often higher risk, and/or can be subject to greater volatility, depending on the market involved.

• Markets for most alts are not transparent, making it difficult to track prices and determine the asset’s real value.

• Are usually less liquid than traditional investments due to limited number of buyers and lack of a convenient market.

• Often have higher minimum investment requirements (e.g., higher purchase price), and higher maintenance costs.

Evaluating a Classic Car for Investment

How do you find a classic car to invest in? It can take time and you’ll need to do your homework. Here are some guidelines for evaluating whether a classic car is a good investment.

• Set your criteria. First, decide what you’re looking for. Are you interested in a specific make and model, or do you want to invest in a car that was manufactured in a certain year? Establishing the basics can help you refine your search.

• Shop around. There are different ways to find a classic car to buy. You might look in auto trader magazines or online, visit auction houses, or attend classic car shows. Looking at different buying options can give you an idea of how much prices may differ from one place to the next, and where the best deals can be found.

• Don’t buy blind. It may be tempting to buy a classic car you find online but it’s a mistake to do so without seeing the vehicle in person first. If the seller allows it, bring along a mechanic and/or a professional appraiser to inspect the vehicle with you.

• Check the condition and provenance. Take time to examine the car’s condition and its details. Look into how many were produced, where it was made, and what kind of demand exists for any vehicle you’re interested in to assess whether its valuation is fair.

• Consider the timing. The best time to buy a classic car investment is usually when you can get it for the best price. Following market trends can give you an idea of how prices are moving at any given time so you can better time your purchase.

Alternatives to Direct Classic Car Ownership

You can still invest in classic cars even if you don’t want to own one directly. Some of the alternatives to physical ownership include:

• Fractional ownership. Fractional ownership allows you to invest small amounts and claim a partial ownership stake in a work of art or other collectibles like cars. Drift Capital, for instance, offers fractional share investing in the world’s rarest and most valuable cars.6

• Classic car funds. Classic car funds work similarly to mutual funds, in that they accept money from multiple investors. Those funds are then pooled to make investments in classic vehicles.

• Classic-car-themed ETFs. ETFs or exchange-traded funds are structured like mutual funds but trade on an exchange like stocks. Auto ETFs can offer exposure to a range of vehicle-related companies, including car manufacturers and classic car storage facilities.

Alternative investments,
now for the rest of us.

Explore trading funds that include commodities, private credit, real estate, venture capital, and more.

The Takeaway

Classic car investments are not limited to the ultra-wealthy; virtually anyone can invest if they have the capital to do so and the willingness to learn how the collectible car market works.

Classic cars are considered a type of alternative investment, though, and as such come with certain potential risk factors, such as lack of liquidity and markets that aren’t transparent. Alts can be profitable, and may offer a hedge against inflation or portfolio diversification.

Ready to expand your portfolio's growth potential? Alternative investments, traditionally available to high-net-worth individuals, are accessible to everyday investors on SoFi's easy-to-use platform. Investments in commodities, real estate, venture capital, and more are now within reach. Alternative investments can be high risk, so it's important to consider your portfolio goals and risk tolerance to determine if they're right for you.

Invest in alts to take your portfolio beyond stocks and bonds.

FAQ

How liquid are classic car investments?

Liquidity for classic car investments is tied to what’s happening in the market and what type of car you own. The more in-demand a vehicle is and the stronger the classic car market, the easier it may be to find a buyer.

What insurance considerations are there for classic cars?

Insuring a classic car is a smart move as you want to protect your investment, but you’ll need a policy that’s designed for the type of vehicle you have. Several insurance companies offer coverage for classic, vintage, and antique vehicles. How much you’ll pay for a policy can depend on your level of coverage, the age and condition of the car, and how it’s used.

Can I use a classic car while it’s an investment?

You can use a classic car investment but it’s important to consider how wear and tear might affect its value. You’ll also need to discuss use with your insurance company and review your state’s laws, as some states won’t consider your car a classic if you’re using it for personal transportation.

How do economic conditions affect classic car values?

Economic conditions can affect demand for classic car investments and the returns they generate. During a downturn, for instance, demand for classic cars may slow which could drive prices down. When the economy picks up and demand increases, prices could rise as well. Some car brands may hold their value better during economic ups and downs.

What expertise do I need to invest in classic cars successfully?

Investing in classic cars requires knowledge of how that market works and what affects valuations. You’ll need to know how to identify a classic vs. vintage vs. antique car, and what paperwork is required to purchase and insure one. You’ll also need to understand how selling a classic car for a profit may affect your tax situation.

Photo credit: iStock/welcomia

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SOIN-Q424-045

Jan

2025

Investing in Rare Coins

By Samuel Becker | Growing Wealth, invest, Investing, Investment Strategy | Comments Off

Investing in rare coins involves buying and selling old, uncommon, scarce, historic, or otherwise notable coins in the hope that they will appreciate over time and can be sold for a profit.

Rare coins are a type of collectible, and as such are considered a type of alternative asset. Some alternative investments may offer potential returns or diversification (like most alternate assets, coin values don’t move in sync with traditional markets). But coins can be subject to fraud and forgery, as well as the whims of the market, and as such investing in coins is not without risk.

Key Points

• Rare coins are considered a type of collectible, similar to vintage cars and baseball cards.

• Investing in rare coins is a type of alternative investment. Alternatives are not correlated with traditional assets like stocks and bonds.

• Like many alternatives, investing in coins requires that investors do their due diligence to understand the value of each asset, and the potential upside as well as the risks.

• Certain types of coins can be subject to fraud and may be fake.

• Like many alts, the coin market can be volatile, and there’s no way to predict whether a certain rare coin will hold its value.

Understanding Rare Coin Investing

Rare coins are a type of collectible, meaning that investors might consider investing in rare coins as a form of alternative investments, which can also include other collectibles, such as vintage wines or antique books, or assets like commodities and real estate.

(Note that SoFi offers alternative investments including a number of different asset types, including real estate, commodities, private credit, hedge funds, and more. It does not offer rare coins, however.)

Alternative investments tend not to be correlated with traditional assets like stocks and bonds. Thus collecting and investing in coins can be a way to diversify your portfolio, but as with any new type of investment there can be a steep learning curve.

Prospective investors may not have a background in coin collecting or numismatics (a term that refers to the formal study of currency, but can apply to hobbyists), and thus may not know how to assess various types of currency.

While collectibles can have value, coins may not rank near the top of the list of the most valuable types of collectibles.

So, before investors get started in rare coin investing, it’s a good idea to learn the ins and outs of rare coins, and even dip into an alt investment guide to see where they stand in the greater ecosystem of alternative investments. At this time, SoFi does not offer rare coins or investment products focused on rare coins.

What Are Rare Coins?

Rare coins are what they sound like: Coins or currencies that are limited by mint location, nation of origin, year, condition, and other variables. Some collectible coins are unusually beautiful, or historically significant.

As an example, you could pick up a dime minted in 2023 in Philadelphia, which would be the opposite of a rare coin. In fact, more than 791 million dimes were minted in Philadelphia during 2023.

But if you were to stumble across a 1969 Lincoln penny minted in San Francisco which features a specific double-die error — that’s an extremely rare coin that might fetch as much as $25,000 at auction (assuming it was authentic).

Recommended: Why Invest in Alternative Assets?

A Brief History of Coin Collecting and Investing

People have been collecting and investing in coins, both common and rare, for thousands of years — perhaps for as long as there have been coins used as currency. In fact, Roman emperors were interested in coin collecting, as were the aristocracy during subsequent eras, and even some of the first U.S. presidents.

Owing to their design and relative rarity, the coins of antiquity were valued as something akin to works of art. But being small and portable, coins were easier to exchange and collect.

While collecting coins was reserved for those with the wealth to obtain exotic coins in the first place, coin collecting as a hobby became more widespread as coins became more common as a basic currency. For example, in the 17th and 18th centuries, when the study of coins and currency became more formalized, the growing base of knowledge also fueled collectors’ interest.

Then, as the minting process became more automated, and the use of various metal alloys made coin manufacturing cheaper in the 19th and 20th centuries, coin collecting continued to gain popularity. Trade shows and organizations emerged, and the first international convention for coin collectors was held in Detroit, in 1962.

Today, the advent of the internet has supported online forums for discussion and networking. In addition, alternative platforms for buying, selling and trading coins have emerged.

Sophisticated collectors may also become de facto investors hoping to see a profit from their collections. However, as with most types of alternative investments, especially collectibles, there are risks involved in coin collecting, owing to the rise of forgeries, fraud, and various scams. In addition, the market for a type of coin may wax and wane, taking a collector’s coin values with it.

Alternative investments,
now for the rest of us.

Explore trading funds that include commodities, private credit, real estate, venture capital, and more.

💡 Quick Tip: All investments come with some degree of risk — and some are riskier than others. Before investing online, decide on your investment goals and how much risk you want to take.

How to Get Started in Rare Coin Investing

For enterprising investors curious about rare coin investing, some initial research is paramount. That includes learning about the different types of rare coins, how to evaluate them, and more. But for someone who wanted to start a simple collection or portfolio of coins, they could always start with commonly used U.S. currency, which is relatively easy to verify and obtain. U.S. coins also have a long and storied history.

However, if you want to start adding rare or high-end coins to your portfolio, one way to do so is to consider buying coin sets. There are hundreds of such sets from all over the world, and from different time periods.

Once you start learning about the different types of coins that comprise sets, you should be able to build up your knowledge and pursue other rare coins. But again, this all depends on an investor’s resources and risk tolerance.

Rare coins are relatively high-risk investments, and there’s no guarantee that there’ll be a return when investors look to sell.

Types of Rare Coins

As discussed, there are many types of rare coins. As a collector or investor, you may want to narrow your focus to a specific subset of coins. Some examples:

• Ancient coins: Ancient coins date back hundreds or even thousands of years. They may be made from gold, silver, copper, or other metals. They may be sourced from ancient empires such as the Greeks or Romans, and since they’re quite rare, they tend to be valuable.

• Rare U.S. coins: The U.S. has minted a lot of coins over the past 250 years, and some are exceedingly rare, making them valuable. These coins may be valuable because they date from specific periods of U.S. history (e.g. the Civil War), have errors, or just have limited mintage.

• International coins: International coins, as a category, can include any coins sourced from around the world. These coins may be valuable due to low mintage, composition, or history, similar to U.S. coins.

• Error coins: Coins with mintage errors can also be valuable. Minting errors may vary, and include double dies (duplicate images), missing markings, strike errors (the design is off-center), and more.

• Bullion: Bullion coins are typically valuable for their composition, and don’t usually have an assigned dollar value. That is, a bullion coin might be one ounce of silver, and is valuable for its silver content. That said, bullion coins can also be minted or designed in rare or unusual ways, and some collectors may enjoy tracking them down as a way of investing in precious metals.

Evaluating Rare Coins

Evaluating rare coins can be difficult, and in many cases, it may be a good idea to take a rare coin to a numismatist or specialist. But in a general sense, investors can do some basic research and look into a coin’s history and origin, its design and features, and its weight and dimensions. There are numerous guides available for this exact purpose.

Would-be coin investors should also bear in mind that there are many fakes on the market. A coin may not actually be of its purported origin or metal composition (a “gold” coin may actually be gold-plated copper, for example). It may be incorrectly graded, too, and be in worse condition than it appears.

This is one of the reasons that investing in coins is rife with risk, and why it may be a good idea to speak with a specialist.

Buying and Selling Rare Coins

Buying and selling rare coins is fairly simple. There are coin and precious metal retail stores all over the world, and you can shop at those stores to find and select the rare coins you want.

There are also large and popular online retailers – an internet search will bring up many names — that you can use to make a purchase, or a sale.

The key, of course, is to try and make sure you’re not being taken advantage of or falling for a scam. So, read reviews, do some research on retailers, and frequent a dealer or retailer that you trust.

Market Trends and Price Factors

Forecasting or even wrapping your head around the market for rare coins can be difficult. But overall, it’s a nearly $10 billion market worldwide, one that’s expected to grow to nearly $20 billion by 2030. The market itself is often driven by passionate collectors and investors, and not economic or external forces like the stock market (though economic and geopolitical factors can have an effect, of course).

For example, the value of precious metals like gold and silver are often in flux. This would likely impact the value of certain coins. But other factors can come into play, like an archeological discovery or historical analysis that alters the perception of a powerful figure or era.

In other words, as with many types of assets it can be difficult to mark what, exactly, is going to increase or decrease the value of a specific coin, other than simple supply and demand. It’s a complex market, and one that will likely require some time and experience to get a handle on for investors.

Risks and Challenges

For investors, perhaps the biggest challenge or risk involved in investing in rare coins is that you may not know exactly what you’re looking at or investing in — especially if you’re inexperienced with coin collecting. You could pay too high of a premium on a coin, for instance, or misunderstand something related to mintage or strike errors. There are a lot of details you need to know, and it can be difficult to take everything into consideration.

Further, investors should be aware of the risks associated with generating returns. Coins don’t accrue value like stocks do, and it’s not easy to tell how much a coin can be worth. You also may need to find a buyer once you’re ready to sell — it’s not as liquid a market as the stock market.

Tax Implications of Rare Coin Investing

Since coins are a form of alternative investment — and collectibles, more specifically — a tax liability is generated once an investor sells it. If you realize a capital gain on that sale — that is, you sell it for more than you paid for it – then you owe capital gains tax, either short-term or long-term, depending on how long you owned it.

But because coins are collectible, a long-term capital gain from the sale of coins can be taxed as high as 28%, plus a potential 3.8% net investment income tax, depending on your adjusted gross income (AGI).

This is why it’s important to keep track of your purchases and sales, so that you can make an accurate tax record for the IRS. Note, too, that depending on where you live, you may not need to pay sales tax when you buy coins — that’s up to the states. As always, it may be best to consult with a tax professional if you have questions.

The Takeaway

Investing in rare coins can be a way to add alternative investments to your portfolio, but it’s an area that has risks. Investors will need to research what they’re buying and selling — which may require some experience in the market — and keep track of their investments to ensure they’re paying a proper amount in taxes.

Investing and collecting coins isn’t for everyone, but It may be a potentially fun and interesting way to add diversification to your portfolio.

Invest in alts to take your portfolio beyond stocks and bonds.

FAQ

What factors determine the value of a rare coin?

Several variables can determine a coin’s value, including its age, mintage, mint location, potential minting errors, the coin’s metal composition, as well as its beauty or historical rarity, and more.

How do you authenticate rare coins before investing?

To authenticate rare coins, it may be best to rely on the expertise of a professional numismatist. Otherwise, you’ll be doing a lot of research on your own to validate dates, origins, mintage, and more.

Is it better to invest in graded or ungraded rare coins?

It may be a good idea to invest in graded rare coins, so that you know what, exactly, you’re investing in.

Photo credit: iStock/Jitalia17

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. This and other important information are contained in the Fund’s prospectus. For a current prospectus, please click the Prospectus link on the Fund’s respective page. The prospectus should be read carefully prior to investing.
Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor's risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds.
Please note that Interval Funds are illiquid instruments, hence the ability to trade on your timeline may be restricted. Investors should review the fee schedule for Interval Funds via the prospectus.

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.

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.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.

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.

SOIN-Q424-007

Jan

2025

Should You Pay Off Your Mortgage Early?

By Alene Laney | Debt Payoff, Growing Wealth, Home Ownership, mortgage | Comments Off

Paying off a mortgage early, if doable, seems like the smartest plan in the world. But the question remains: Should you pay off your mortgage early? Dedicating most of your money to a home loan means you may not be able to fund your business, investments, a college fund, an emergency fund, travel, or fun purchases.

There are a lot of scenarios where your money may be put to better use elsewhere.

Here’s what to consider before you decide to go all-in on paying off your mortgage early.

Key Points

• A solid emergency fund is essential before considering early mortgage payoff to ensure financial stability.

• Fully funding retirement accounts should be a priority due to potential higher returns and tax benefits.

• Strategies for early mortgage payoff include biweekly payments, refinancing, recasting, and lump-sum payments.

• High-interest debt should be addressed before focusing on early mortgage payoff.

• Early mortgage payoff reduces monthly expenses and interest costs, beneficial before retirement.

When Should You Pay Off Your Mortgage Early?

Sometimes paying off your mortgage early could make sense. For example:

You Have a Rainy Day Fund

You have emergency savings, the three to six months of living expenses in reserve that most experts recommend.

And your college savings plan, if that’s a need, is funded.

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

Questions? Call (888)-541-0398.

You’re Funding Your Retirement

You’re contributing the max to your 401(k), IRA, and other retirement accounts. If that’s not the case, you may want to do that before paying off the mortgage.

You Want to Reduce Monthly Expenses Ahead of Retirement

If a mortgage takes up a large portion of your monthly expenses, it may make sense to eliminate the mortgage payment if you know you’re going to be on a limited income soon (such as retirement).

You Want to Save on Interest Costs

Take a look at the loan you signed, or any mortgage calculator tool for that matter. On many standard 30-year loans, you will pay just as much in interest as you do in principal. Paying off a home mortgage loan early could save you a lot of money in interest over the life of a home loan.

Reasons to Hold Off on Paying Off Your Mortgage Early

If you’re in the fortunate position of contemplating paying off your mortgage early, there are a few reasons to rethink doing so.

Investment Offers Possibility of Higher Return

If investments provide a return greater than the interest rate you’re paying on your mortgage, it may not make sense to pay off your home loan right now. Remember, past performance doesn’t guarantee future returns, so you’ll want to periodically evaluate how investments are performing against your mortgage interest rate. Many investments also have better liquidity than a mortgage. However, you’ll want to make sure to consider your risk tolerance and investment objectives when deciding to invest instead of paying down your mortgage.

What about buying a rental property instead of paying off a mortgage? Purchasing investment property could generate cash flow, and adding to a real estate portfolio is one way to build generational wealth.

You Still Have High-Interest Debt

Mortgages tend to have much lower interest rates than credit cards do. If you’re a “revolver” who carries balances from one month to the next, or in a family of revolvers, paying off that debt first makes sense.

Nearly half of U.S. families report having revolving balances on one or more of their credit cards, with the average revolving family owing over $6,000, recent data shows.

How to Pay Off Your Mortgage Early

If paying off your mortgage makes sense for your financial situation, it’s helpful to know how to pay off your mortgage early. A handful of strategies may work for different types of mortgages.

Biweekly or Extra Monthly Payment

One strategy homeowners use to pay off their mortgage early is to pay biweekly. If you pay every two weeks instead of monthly ($1,000 every two weeks, for example, instead of $2,000 a month), by the end of the year you’ll have made a full extra payment. Mortgage servicers may charge fees if you do this, though.

If you want to get more aggressive, making an extra payment every month will decrease the principal quickly. You’ll want to make sure the payment is applied to principal only.

Paying a bit extra every month is one sure way to shrink total interest paid and the loan term. For a mortgage loan of $450,000 at a 5.6% fixed rate for 30 years, total interest paid would be $480,008. Putting $400 more toward the mortgage payment every month would whittle total interest paid to $329,881 — a savings of $150,127. And the mortgage would be paid off in 21 years and 10 months instead of 30 years.

Refinance to a Shorter Term

Changing a 30-year mortgage to a 15-year term with a mortgage refinance will likely result in a larger monthly payment (depending on how much you owe) but a substantial amount in interest savings.

With a shorter mortgage term, payments eat into the principal more quickly. If you stack extra payments on top of a 15-year mortgage, you’ll quickly decrease your loan balance on your way to a paid-off mortgage. Refinancing doesn’t have to happen with your current lender, so consider shopping for a mortgage to see what rate and terms you can get if you are going this route.

Recast Your Mortgage

Recasting your mortgage involves making a large lump sum payment toward the principal and having your lender reamortize the mortgage. Your monthly mortgage payment will be recalculated based on how much you owe after the large payment. The term and interest rate will stay the same.

With a recast, you don’t have to go through the application process, and the administrative fee is usually a few hundred dollars.

To decide on a mortgage recast vs. refinance, weigh the pros and cons of each.

Make Lump-Sum Payments

Making lump sum payments will go far toward paying down your mortgage. Just make sure the payments go directly toward the principal.

Get a Loan Modification

A loan modification alters the terms of your original loan to make it more affordable, which could ultimately lead to an earlier mortgage payoff date. This mortgage relief option is reserved for those experiencing financial hardship.

Changes to the terms of the mortgage are designed to potentially lower the mortgage payment so that the homeowner avoids foreclosure. Talk to your lender if you’re thinking about going this route.

Get matched with a local
real estate agent and earn up to
$9,500^‡ cash back when you close.

Pair up with a local real estate agent through HomeStory and unlock up to
$9,500 cash back at closing.^‡ Average cash back received is $1,700.

Recommended: Home Loan Help Center

The Takeaway

Paying off your mortgage early is a lofty goal, but if you have other financial needs or can make a better return elsewhere, it may make sense to keep your mortgage. Make sure you consider all options before you make your decision.

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

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Do property taxes go up when you pay off your mortgage?

No. Property taxes do not change based on whether or not you’ve paid off your mortgage. If you do pay off your mortgage, it might seem like you’re paying more because you’ll pay taxes all at once or in a couple larger installments.

What happens to escrow when you pay off your mortgage?

When a mortgage is paid off, an escrow account, if one was in place, is closed. Homeowners will need to contact their property insurance company and taxing entity to have the charges sent directly to them. If there is extra money in the escrow account, it will be sent back to the homeowner when the mortgage is paid off and the escrow account is closed.

How does paying off your mortgage early affect your credit score?

Your credit score won’t be greatly affected by paying off your mortgage early. The account will remain on your credit for 10 years as a closed account in good standing.

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.

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.

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.

‡Up to $9,500 cash back: HomeStory Rewards is offered by HomeStory Real Estate Services, a licensed real estate broker. HomeStory Real Estate Services is not affiliated with SoFi Bank, N.A. (SoFi). SoFi is not responsible for the program provided by HomeStory Real Estate Services. Obtaining a mortgage from SoFi is optional and not required to participate in the program offered by HomeStory Real Estate Services. The borrower may arrange for financing with any lender. Rebate amount based on home sale price, see table for details.

Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.

HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.

SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.

If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.

Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.

SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.

The trademarks, logos and names of other companies, products and services are the property of their respective owners.

SOHL-Q125-038

Jan

2025

The Mortgage Underwriting Process: How Long Does it Take?

By Kylie Ora Lobell | Growing Wealth, Home Ownership, mortgage | Comments Off

Underwriters are a bit like jurors: They soberly weigh the evidence and render a verdict. Unlike jurors, underwriters sometimes reach out to those they are, well, judging to obtain additional information, clarify a matter, or otherwise help the case for mortgage approval.

If the underwriter finds that you’re fiscally fit enough to take on a mortgage and that the amount you want to borrow is a manageable size, you’re on your way to a home purchase. So you want to put your best foot forward where the underwriter is concerned. By learning about underwriting, you’ll be prepared for the document-gathering and hurdles ahead.

What Is Mortgage Underwriting?

Underwriters protect a bank, credit union, or mortgage company by making sure that they only give loan approval to aspiring homeowners who have a good chance of paying the lender back.

If you’re wondering what is the underwriting process, here are some of their tasks:

• Verify documents and financial information and make sure that enough savings exist to supplement income or contribute toward the down payment.

• Check an applicant’s credit score and history and note any bankruptcies, late payments, significant debts, or other red flags.

• Calculate the debt-to-income ratio by adding up monthly debt payments and dividing that number by monthly pretax income.

• Request additional documents and ask questions if necessary. For example, if a homebuyer has had more than one job over the past year and their income is not consistent, an underwriter may want to see more assets.

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

Questions? Call (888)-541-0398.

5 Steps of the Mortgage Underwriting Process

The mortgage-seeking journey is a winding path that eventually arrives at the underwriter. Automated underwriting may approve your loan application, though a human underwriter will verify your application and documentation. If the software refers your application to manual underwriting, that’s usually a slower process.

Here are common steps leading to underwriting:

1. Explore Your Budget

Prequalifying for a mortgage is a quick move that will provide a ballpark budget for your home purchase, based on self-reported financial info. And you can employ a home affordability calculator to get a feel for your top price.

Think, too, about lending questions you’ll have during the mortgage process.

2. Get Preapproved for a Loan

Shop around for the best deal, and best-fitting loan, with a mortgage broker or direct lender. This is the time to submit documentation of your income, employment, assets, and debts and allow a hard pull of your credit score. What credit score is needed to buy a house? Much depends on whether you plan to use a conventional or government-backed mortgage loan (an FHA loan is more lenient).

A mortgage preapproval letter, often good for 30 to 90 days, indicates the lender’s willingness to lend you a particular amount at a tentative or locked interest rate. A preapproval letter also allows a buyer to act quickly in a seller’s market.

3. Find Your Home

Once you find a home that meets your needs, you’ll need to agree on a price. Ideally it is within the amount you’ve budgeted and been preapproved for.

4. Apply for the Loan

You may choose one of the lenders you gained preapproval from, or another lender, to apply for the mortgage. You’ll receive a loan estimate within three business days from each lender you apply with.

If you go with one of the former, you submitted documents in order to get preapproved. Still, the lender will likely ask for further documentation now that you’re ready to act on a purchase, and will take another look at your credit.

5. Wait for the Underwriting Verdict

A loan processor will confirm your information, and then it’s time for the underwriter to review your credit scores and history, employment history, income, debts, assets, and requested mortgage amount.

The underwriter will order an appraisal of the chosen property and get a copy of the title insurance, which shows that there are no liens or judgments. Finally, the underwriter will consider your down payment.

Then comes the decision on your mortgage application: approved, suspended (more documentation is needed), or denied. How long does underwriting take? The verdict could come in as little as a few days.

Required Information for Underwriting

Lenders are going to request a lot of documents from mortgage loan applicants.

Income verification. The lender will want to see W-2s from the past two years, your two most recent bank statements, and two most recent pay stubs. Those who are self-employed will need to document stable work and payments and ideally have a business website. Applicants will typically need to show evidence of at least two years of self-employment income in the same field.

Any additional income. Pension, Social Security, alimony, dividends, and the like all count.

Proof of assets. This can include checking and savings accounts, real estate you own, retirement savings, and personal property. A lender might want to see that a down payment and closing costs have been in an applicant’s account for a while.

Debts. Your debt-to-income ratio matters greatly, so list all monthly debt payments, each creditor’s name and address, account numbers, loan balances, and minimum payment amounts.

Gift letter. If you’ve received money from a family member or another person to put toward your home purchase, the lender will request a gift letter for the mortgage and proof of that funding in your account.

Rent payments. Renters will likely need to show evidence of payments for the past 12 months and give contact information for landlords for two years.

How Long Does Underwriting Take?

Underwriting may take a couple of days to more than a week. It all depends on how complicated someone’s finances are and how busy an underwriter is. Thankfully, underwriters typically do everything online these days, so an applicant can upload documents to a website or simply email them.

Can You Speed Up the Mortgage Underwriting Process?

Most of the methods used to speed up the underwriting process are not in the hands of the borrower but rather methods lenders can use to accelerate their review. An applicant can help ensure an efficient underwriting process by making sure they submit all the requested information and documents the first time around, thereby lessening the likelihood an underwriter will have questions.

How You Can Improve Your Chance of Being Approved

Before applicants try to get a mortgage, they can take a number of steps to improve their chances of getting approved.

Lighten the debt load. It’s critical to pay off as much debt as possible and to try to keep your credit utilization ratio below 30%, though some lenders like to see a ratio below 25%.

Applicants can pay off debt faster by making a budget (and sticking to it), using cash instead of credit cards to make purchases, and negotiating interest rates with creditors.

Look at credit reports. Applicants should also scour their credit reports and fix any mistakes so that their score is as high as possible. Federal law guarantees the right to access credit reports from each of the three major credit bureaus annually for free.

The reports show only credit history, not credit scores. There are ways to monitor your credit scores and track your money at no cost.

Attempt to boost income. Applicants may want to apply for higher-paying jobs or get to know the benefits of a side hustle so they can save more money.

Ask for a gift or loan partner. You could also ask a family member for a gift to put toward the down payment, or you could ask a relative with a stable credit history and income if they would apply for the loan as a co-borrower or cosigner.

With an underwriter extending a hand, a solution may be found that leads to approval.

The Takeaway

Ready to apply for a mortgage? Prepare for a probing look at your private life — the financial one — by an underwriter, who is gauging the risk of lending you a bundle of money. The underwriter looks at a homebuyer’s finances and history, the loan amount, and the chosen property and renders a verdict.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

How long does it take for the mortgage underwriter to make a decision?

Underwriting can take anywhere from a couple days to a few weeks, depending in part on the complexity of a mortgage applicant’s financial situation and how thorough applicants are in submitting requested documents.

Is underwriting the last step before closing?

Not quite. After the underwriter signs off on the loan, it’s likely that your lender will want to do a final verification of your employment status, credit score, income, or all of the above. You’ll then be sent closing documents to review, and you’ll need to arrange payment of the closing costs, usually via a cashier’s check or bank transfer. At that point, you should be headed to a closing.

How often do underwriters deny loans?

About one in 10 loan applications are denied, according to the Consumer Finance Protection Bureau. Denials are less common for conventional loan applicants than for those applying for Federal Housing Administration (FHA) loans. Denial rates tend to be higher for refinance applicants than for home purchasers.

About the author

Kylie Ora Lobell

Kylie Ora Lobell is a personal finance writer who covers topics such as credit cards, loans, investing, and budgeting. She has worked for major brands such as Mastercard and Visa, and her work has been featured by MoneyGeek, Slickdeals, TaxAct, and LegalZoom. Read full bio.

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

SOHL-Q224-1945575-V1

Jan

2025

What Does At the Money Mean in Options Trading?

By Dan Miller | Growing Wealth, invest, Investing | Comments Off

Editor's Note: Options are not suitable for all investors. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Please see the Characteristics and Risks of Standardized Options.

An at-the-money (ATM) option is one where the strike price is at or very near the current price of the underlying stock itself. At-the-money options have no intrinsic value, but they may have value due to their potential to go in the money before they expire.

Options traders must understand the difference between the three types of options’ “moneyness:” at the money, in the money, and out of the money.

Key Points

• An at-the-money (ATM) option has a strike price at or near the current price of the underlying stock, with no intrinsic value.

• ATM options typically have a delta of around 0.50, meaning their price moves about 50 cents for every dollar movement in the stock.

• ATM options can be less expensive than in-the-money (ITM) options but more costly than out-of-the-money (OTM) options.

• The volatility smile indicates that implied volatility is generally lower for ATM options compared to ITM or OTM options.

• Understanding ATM, ITM, and OTM options is crucial for effective options trading strategies.

What Is At the Money?

Conventionally, being at the money means that a given option’s strike price is identical to the price of the underlying stock itself. Both a call option and a put option can be at the money at the same time if their strike price is the same as the price of the stock.

In the age of decimal stock pricing, however, it is rare for an option’s strike price to exactly equal the price of the underlying stock. The at-the-money strike is usually considered the one closest to the stock’s price.

Understanding At the Money

Usually, an option that is at the money will have a delta of around 0.50 for a call option and -0.50 for a put option. This means that for every $1 of movement of the underlying stock, the option will move about 50 cents.

Some options traders employ more complicated strategies, such as an at-the-money-straddle. This involves buying or selling both an at-the-money call and an at-the-money put on the same underlying asset with the same strike price and expiration date. This strategy offers the potential to profit from large price swings in either direction. It also carries the risk of loss if the underlying price stays near the strike, as both options may expire worthless, costing the investor the net premium paid.

💡 Quick Tip: Look for an online brokerage with low trading commissions as well as no account minimum. Higher fees can cut into investment returns over time.

At the Money vs In the Money vs Out of the Money

Usually there is one option strike price considered at the money, with any other strike prices being either in the money (ITM) or out of the money (OTM). The difference between ITM and OTM is that an in-the-money option is one that has intrinsic value, meaning it would be profitable to exercise it today.

A call option is in the money when the stock price is above the strike price, while a put options is in the money when the stock price is below the strike price.

Out-of-the money options have no intrinsic value and will generally expire worthless if they remain out of the money at expiration.

Consider the following call or put options for stock ABC with a current price of $55.

Option	Strike price	ATM / ITM / OTM
ABC Call option	$55	At the money
ABC Put option	$55	At the money
ABC Call option	$70	Out of the money
ABC Put option	$70	In the money
ABC Call option	$40	In the money
ABC Put option	$40	Out of the money

Recommended: Call vs. Put Options: The Differences

At the Money and Near the Money

An option is considered near the money usually if it is within 50 cents of the price of the underlying stock. However, it is common for investors to use the terms “near the money” and “at the money” interchangeably.

This is because stocks are priced to the nearest cent, while option strike prices are usually only to the nearest dollar or half-dollar, depending on the magnitude of the underlying stock price. It is rare for a stock to have an option that exactly matches any specific strike price.

Pricing At-the-Money Options

Because an at-the-money option has a strike price at or near the price of the underlying stock, it has no intrinsic value. Any value in an ATM option primarily consists of extrinsic value, meaning the portion of an option’s value determined by its potential to increase in value before it expires, measured by factors such as its time to expiration and implied volatility.

Options have the potential to provide greater returns, relative to the cost, than directly purchasing stock if the underlying asset moves favorably, but options investors also face the risk of losing their entire investment if the market moves unfavorably.

At the Money and Volatility Smile

A “volatility smile” is a graph that shows implied volatility across different strike prices, typically forming a curve that resembles a smile. This pattern generally shows that implied volatility is often lower for at-the-money options compared to those that are in-the-money or out-of-the-money. That said, it’s important to know that not all options fit into the volatility smile model.

Pros and Cons of Trading At-the-Money Options

Here are some pros and cons of trading at-the-money options:

thumb_up

Pros:

• Generally less expensive than in-the-money options, which have intrinsic value.

• Can offer a hedge against downside risk on stocks you already own.

• May offer a range of trading strategies, given their position between in-the-money and out-of-the-money options, which can affect risk and potential reward.

thumb_down

Cons:

• Higher premiums compared to out-of-the money options.

• ATM options have lower intrinsic value at purchase, and may expire worthless if the stock price doesn’t move.

• If the stock moves against your expectations, you could potentially lose your entire investment.

The Takeaway

Understanding the difference between options that are at the money, in the money and out of the money is crucial if you want to trade options through your brokerage account. Prices with these three different types of options contracts react differently to movements in the price of the underlying stock, so make sure you buy the right one based on your overall strategy.

SoFi’s options trading platform offers qualified investors the flexibility to pursue income generation, manage risk, and use advanced trading strategies. Investors may buy put and call options or sell covered calls and cash-secured puts to speculate on the price movements of stocks, all through a simple, intuitive interface.

With SoFi Invest® online options trading, there are no contract fees and no commissions. Plus, SoFi offers educational support — including in-app coaching resources, real-time pricing, and other tools to help you make informed decisions, based on your tolerance for risk.

Explore SoFi’s user-friendly options trading platform.

FAQ

What does buying at the money mean?

When you buy an at-the-money option, you are buying an option whose strike price is at or near the price of the underlying stock. An option that is at the money generally has a delta value of around positive or negative 0.50, depending on if it is a call or a put. That means its price will move about 50 cents for every dollar that the price of the underlying stock moves.

How do at the money and in the money differ?

An at-the-money option is one whose strike price is at or near the price of the underlying stock. An in-the-money option is one with a strike price that would be exercised if the option closed today. An at-the-money call option is one whose strike price is at or lower than the stock price, while an at-the-money put option is one whose strike price is at or higher than the stock price.

Is it best to buy at the money?

There are several different strategies for trading options, and the strategy you trade will help decide whether it’s a good idea to buy at the money. It can certainly be profitable to buy or sell at-the-money options, but other strategies for making money with options exist as well.

Photo credit: iStock/DMEPhotography

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SOIN-Q324-070

Are Classic Cars Good Investments? Weighing the Pros and Cons

What Is a Classic Car?

Factors Affecting Classic Car Values

Potential Benefits of Investing in Classic Cars

Risks and Challenges of Investing in Classic Cars

Understanding Classic Cars as an Alternative Investment

Potential disadvantages of alts

Evaluating a Classic Car for Investment

Alternatives to Direct Classic Car Ownership

Alternative investments, now for the rest of us.

Explore trading funds that include commodities, private credit, real estate, venture capital, and more.

The Takeaway

FAQ

How liquid are classic car investments?

What insurance considerations are there for classic cars?

Can I use a classic car while it’s an investment?

How do economic conditions affect classic car values?

What expertise do I need to invest in classic cars successfully?

Investing in Rare Coins

Understanding Rare Coin Investing

What Are Rare Coins?

A Brief History of Coin Collecting and Investing

Alternative investments, now for the rest of us.

Explore trading funds that include commodities, private credit, real estate, venture capital, and more.

How to Get Started in Rare Coin Investing

Types of Rare Coins

Evaluating Rare Coins

Buying and Selling Rare Coins

Market Trends and Price Factors

Risks and Challenges

Tax Implications of Rare Coin Investing

The Takeaway

FAQ

What factors determine the value of a rare coin?

How do you authenticate rare coins before investing?

Is it better to invest in graded or ungraded rare coins?

Should You Pay Off Your Mortgage Early?

When Should You Pay Off Your Mortgage Early?

You Have a Rainy Day Fund

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

You’re Funding Your Retirement

You Want to Reduce Monthly Expenses Ahead of Retirement

You Want to Save on Interest Costs

Reasons to Hold Off on Paying Off Your Mortgage Early

Investment Offers Possibility of Higher Return

You Still Have High-Interest Debt

How to Pay Off Your Mortgage Early

Biweekly or Extra Monthly Payment

Refinance to a Shorter Term

Recast Your Mortgage

Make Lump-Sum Payments

Get a Loan Modification

Get matched with a local real estate agent and earn up to $9,500‡ cash back when you close.

The Takeaway

FAQ

Do property taxes go up when you pay off your mortgage?

What happens to escrow when you pay off your mortgage?

How does paying off your mortgage early affect your credit score?

The Mortgage Underwriting Process: How Long Does it Take?

What Is Mortgage Underwriting?

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

5 Steps of the Mortgage Underwriting Process

1. Explore Your Budget

2. Get Preapproved for a Loan

3. Find Your Home

4. Apply for the Loan

5. Wait for the Underwriting Verdict

Required Information for Underwriting

How Long Does Underwriting Take?

Can You Speed Up the Mortgage Underwriting Process?

How You Can Improve Your Chance of Being Approved

The Takeaway

FAQ

How long does it take for the mortgage underwriter to make a decision?

Is underwriting the last step before closing?

How often do underwriters deny loans?

What Does At the Money Mean in Options Trading?

What Is At the Money?

Understanding At the Money

At the Money vs In the Money vs Out of the Money

Alternative investments,
now for the rest of us.

Alternative investments,
now for the rest of us.

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

Get matched with a local
real estate agent and earn up to
$9,500^‡ cash back when you close.

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

Student Loan
Refinancing

Personal
Loans

Online
Investments