SoFi Blog

Tips and news—
for your financial moves.

Jan
02
2026

December 2025 Market Lookback

By | | Comments Off on December 2025 Market Lookback

Black Ice in the Data

If you’ve ever driven in a snowstorm, you know that it’s unnerving. Visibility is poor and the roads are slick, so you go slow and stay extra vigilant. The thing is, the heightened danger doesn’t go away once the weather improves — black ice can make driving deceptively dangerous, maybe even more so than during the storm itself.

In some ways, there’s a parallel for investors. Even though there’s a calm after the government shutdown storm, there are reasons to tread carefully.

We’re getting caught up with economic data, the Federal Reserve delivered the interest rate cut markets were looking for last month, and investors are ready to hit the ground running after the usual end-of-year lull in activity. Though some of the data we’ve gotten has looked like an economic all-clear signal, there are reasons to be careful.

This is most evident in the surprisingly low November inflation reading, which was driven by a big deceleration in housing inflation. Looking under the hood, however, shows us the headline reading was probably a headfake. It gets wonky, but it stems from the fact that Consumer Price Index data wasn’t collected in October, so the government had to carry forward prior data on some items. And because the CPI relies on rent data over a period of six months, inflation readings through April will be skewed lower too. (And for similar reasons, they could be skewed higher for a year after due to base effectsfor the six months after that.).

Illustration of Base Effects From October CPI Assumptions


 

The Price of Perfection

Despite these statistical mirages, it’s important to take stock and acknowledge the sheer magnitude of the run we’ve just witnessed. The S&P 500 has now logged three consecutive years of returns that are nearly two standard deviations above the long-term historical average.


 

While investors who’ve benefited certainly won’t complain about the gains, the market’s performance can be seen as pulling forward future returns. And with stock valuation multiples pricing in near-perfection, that leaves little buffer for the disappointment that distorted data might eventually reveal. The same goes for the high expectations attached to artificial intelligence.

History suggests that such extreme deviations rarely sustain themselves without an eventual consolidation phase. This doesn’t necessarily imply a crash. After all, we are in a bull market that has largely been driven by AI and the promises of a future radically different from the one we currently occupy — a future that is, at least for now, unfalsifiable.

Though the prudent move isn’t to chase a stock market after three years of outlier performance, a return to statistical normalcy might not be in the cards quite yet. Instead, volatility is likely to be the price of admission in 2026, as it’s been the last few years.

Market Recap

December 2025 Asset Returns


 

December 2025 Sector Total Returns


 

Macro

•  The Federal Reserve lowered the fed funds rate by 25 basis points to a target range of 3.50%-3.75%.

•  The Fed’s Summary of Economic Projections showed the median official expects higher growth, similar unemployment, and lower inflation in 2026, driven in part by higher productivity expectations.

•  The latest Employment Situation report showed 105k jobs lost in October (driven by government layoffs) and 64k jobs added in November with an unemployment rate of 4.6%, above consensus expectations.

•  Though November CPI came in well below expectations at 2.7% y/y, a big portion of this downside surprise was driven by unrealistic assumptions regarding missing October data in key areas like shelter.

•  Oil prices finished the month below $60 a barrel, the fourth such month since early 2021.

•  Powered by a supply-driven squeeze in silver prices, precious metals rose 7.8% in December.

•  The U.S. Dollar depreciated 1.1% against a basket of major currencies, the biggest decline since August.

Equities

•  The S&P 500 ended the year with a total return of 17.9%, its third straight year of above-average returns and sixth year of at least 17% returns out of the last seven (the first such occurrence since 1955).

•  Cyclical stocks outperformed defensives by 2.3 percentage points, the most since May.

•  Value stocks beat growth stocks by only 1.2 percentage points, the narrowest spread between the two since November 2024.

Fixed Income

•  Investment Grade and High Yield corporate bond spreads remained well contained, hovering between 76-80 and 264-283 basis points, respectively.

•  Beginning the month at 4.03%, the yield on a 10-year Treasury rose 14 bps to 4.17%, the first monthly increase since July.

•  The MOVE Index, a proxy for interest rate volatility, ended the year at 64.0, the lowest since October 2021.

View PDF

SoFi can’t guarantee future financial performance, and past performance is no indication of future success. This information isn’t financial advice. Investment decisions should be based on specific financial needs, goals and risk appetite. Information is obtained from sources and data considered to be reliable, but its accuracy and completeness is not guaranteed by SoFi.

Communication of SoFi Wealth LLC an SEC Registered Investment Adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Mario Ismailanji is a Registered Representative of SoFi Securities and Investment Advisor Representative of SoFi Wealth. Form ADV 2A is available at www.sofi.com/legal/adv.

Read more
Dec
31
2025

Standard High APY (New Member), $300 DD Bonus, and New Member APY Boost

By | Uncategorized | Comments Off on Standard High APY (New Member), $300 DD Bonus, and New Member APY Boost

{/* OFFER – HERO */}

{/* OFFER – Banner */}


SoFi Checkings and Savings

{/* OFFER – Description */}

Get up to $300 and 4.00% APY on savings for up to six months with eligible direct deposit.

{/* DISCLOSURE CONTENT */}

{/* INSERT DISCLOSURE’S HERE */}

*Who is eligible for a Direct Deposit Bonus?

New and existing SoFi members who have never set up direct deposit with SoFi are eligible for the Direct Deposit Bonus. Bonuses are limited to one bonus per SoFi member. In the case of a joint account, direct deposit activity will only be counted towards the primary account holder’s eligibility for the bonus (the primary account holder is the member who opened the joint account first).

How do I earn the Direct Deposit Bonus?

1. Set up your first Eligible Direct Deposit. SoFi must receive it on or before 12/31/26.

2. Once SoFi receives and recognizes your first Eligible Direct Deposit, we will add up the Total Eligible Direct Deposits received over the next 25 calendar days. This total will determine the bonus amount.

Total Eligible Direct Deposit Bonus Amount Timing
$1.00 - $999.99 $0 To determine your bonus amount, SoFi will add up all your Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit.
$1,000.00 - $4,999.99 $50
$5,000.00 or more $300

3. You will receive the bonus amount in your SoFi Checking account within 7 business days of completing all requirements listed above. You are only eligible to receive one bonus amount. You must have an open SoFi Checking account in good standing at the time of the bonus payment.

What is an Eligible Direct Deposit?

Eligible: Recurring ACH deposit of regular income to your SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by your employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”)

Not Eligible: Deposits that are not from an employer, payroll or benefits provider or government agency and deposits that are non-recurring in nature are not eligible. Examples of deposits that are not eligible include check deposits, peer-to-peer transfers (e.g., transfers from Zelle, PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), bank ACH funds transfers, wire transfers from external accounts, and IRS tax refunds. SoFi Bank shall, in its sole discretion, assess your Eligible Direct Deposit activity to determine eligibility and may require additional documentation to complete this verification.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your initial Eligible Direct Deposit. After SoFi validates the details of your Eligible Direct Deposit, your Direct Deposit Bonus will be based on the date we received your initial Eligible Direct Deposit.

What else is important to know?

This promotion is available between 12/7/2023 at 12:01AM ET and 12/31/2026 at 11:59PM ET. SoFi reserves the right to modify or end the promotion at any time without notice. The terms of this promotion take precedence over the terms of any prior Direct Deposit promotion.

SoFi reserves the right to exclude any members from participating in this promotion for any reason, such as suspected fraud, misuse, or suspicious activity.

SoFi members with Eligible Direct Deposit activity can earn 3.30% annual percentage yield (APY) on savings balances. Interest rates are variable and subject to change at any time. These rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet.

Bonuses are considered income and may be reportable on IRS Form 1099-INT or Form 1042-S as applicable. SoFi is required to do this reporting in compliance with the applicable federal and state reporting requirements. Recipient is responsible for any applicable federal, state or local taxes associated with receiving the bonus offer; consult with your tax advisor to determine applicable tax consequences.

This promotion is offered by SoFi Bank, N.A, Member FDIC (“SoFi”)


SoFi Bank assesses Eligible Direct Deposit or Qualifying Deposits based on a rolling 31-calendar day period and may request additional information for verification of eligibility. A rolling 31-calendar day period means that each time you receive an Eligible Direct Deposit or $5,000 in Qualifying Deposits, a new 31-day period begins, during which you will earn the interest rates and APYs for account holders with Eligible Direct Deposit or Qualifying Deposits. If you receive another Eligible Direct Deposit or $5,000 in Qualifying Deposits during the current 31-day period, the period will reset, and a new 31-day period will begin from the date the criteria are met. You can view the end date of your current 31-day period, based on your most recent deposit activity, by visiting the APY details page within your account.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Eligible Direct Deposit or Qualifying Deposit activity before adjusting interest rates and APYs. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits within a rolling 31-day period, or did not pay the SoFi Plus Subscription Fee every 30 days, and, if applicable, the grace period, then you will begin earning the interest rates and APYs earned by members without Eligible Direct Deposit, $5,000 in Qualifying Deposits or SoFi Plus Paid Subscription.

As long as you receive an Eligible Direct Deposit or $5,000 in Qualifying Deposits every 31 calendar days, or pay the SoFi Plus Subscription Fee every 30 calendar days, you will continue earning the interest rates and APYs earned by account holders with Eligible Direct Deposit, $5,000 in Qualifying Deposits or SoFi Plus Paid Subscription. See additional details at https://www.sofi.com/legal/banking-rate-sheet


Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility. See additional details at https://www.sofi.com/legal/banking-rate-sheet.


SoFi Plus members can earn up to 4.00% Annual Percentage Yield (APY) with a limited-time 0.70% APY Boost to the current Savings APY of 3.30% (rate current as of 12/23/2025). Rates are variable and subject to change.

SoFi Boost APY Promotion Terms
The following terms and conditions (the “Terms”) apply to the SoFi APY Boost Promotion (the “Promotion”), which allows Eligible Members (as defined below) to receive a 0.70% annual percentage yield (“APY”) boost to the APY earned on one SoFi Savings account (the “0.70% APY Boost”) for up to six months by completing the required actions described below. If you have already received this Boost on one account, you are not eligible to receive the 0.70% APY Boost on a subsequent account.

Promotion Period: August 5, 2025 at 12:00 a.m. E.T. - March 30, 2026 at 11:59 p.m. E.T.

Who is eligible for the Promotion?
Members who are new to SoFi Checking and Savings AND who have not previously enrolled in SoFi Plus as of 8/5/25 are eligible for this promotion (“Eligible Members”). Members who have previously opened a SoFi Checking and Savings account and/or previously enrolled in SoFi Plus are not eligible. Eligible Members must complete the qualifying activities described below in order to receive the 0.70% APY Boost.

What qualifying activities do I need to complete to earn the 0.70% APY Boost?
In order to receive the 0.70% APY Boost, you must complete all qualifying activities described in either Option 1 or Option 2 below.

Option 1
Open a new SoFi Checking and Savings account between 8/5/2025 and 3/30/2026;
AND
Complete one of the following activities within 60 days after opening your SoFi Checking and Savings account:
Enroll in SoFi Plus by paying the SoFi Plus Subscription Fee; OR
Receive an Eligible Direct Deposit into your SoFi Checking and Savings account;
OR
Receive $5,000 in Qualifying Deposits into your SoFi Checking and Savings account;
AND pay the SoFi Plus Subscription Fee every 30 calendar days, or receive an Eligible Direct Deposit or $5,000 in Qualifying Deposits every 31 calendar days for a period of six months.

Option 2
Enroll in SoFi Plus by paying the SoFi Plus Subscription Fee between 8/5/2025 and 3/30/2026; AND
Open a new SoFi Checking and Savings account by 3/30/2026; AND
Maintain your SoFi Plus Subscription Fee for a period of six months.

When will I begin earning the 0.70% APY Boost?
Once you have completed all qualifying activities described in either Option 1 or Option 2 above, you will begin receiving the 0.70% APY Boost on your Savings account balances by the following business day. However, if you set up Eligible Direct Deposit, you will begin receiving the 0.70% APY Boost within one business day after SoFi recognizes your Eligible Direct Deposit.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the 0.70% APY Boost, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your 0.70% APY Boost is not showing, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the 0.70%% APY Boost from the date you contact SoFi.

How long will I earn the 0.70% APY Boost?
You will continue to receive the 0.70% APY Boost for a period of up to six months (the “Boost Period”), provided that you remain enrolled in SoFi Plus for the full Boost Period. In order to remain enrolled in SoFi Plus for the full Boost Period, you must receive an Eligible Direct Deposit into your Checking or Savings account every 30 days or pay the SoFi Plus Subscription Fee every 30 days. See the SoFi Plus Terms and Conditions for additional details.

During the Boost Period, if you lose your SoFi Plus status for any period, you will not earn the 0.70% APY Boost for that period. Your rates will revert to the standard rates set forth on the SoFi Bank Rate Sheet at https://www.sofi.com/legal/banking-rate-sheet. However, you will be eligible to receive the 0.70% APY Boost again during the remainder of the Boost Period by re-enrolling in SoFi Plus.

Additional Important Terms:
Only one promotional APY offer may apply at any time. The 0.70% APY Boost may not be combined with other promotional rates.

Promotion is non-transferable and limited to one 0.70% APY Boost per member. Any subsequent accounts opened by the member will not receive the 0.70% APY Boost.

SoFi reserves the right to modify, suspend, or terminate the Promotion at any time without notice.

Standard rates are variable and subject to change at any time. There is no minimum balance requirement. Fees may reduce earnings. For current rates and additional disclosures, please see: https://www.sofi.com/legal/banking-rate-sheet.

{/* CTA Mobile */}


{
(window.Android || window.callbackHandler).postMessage(JSON.stringify({
name: ‘onClose’,
value: ‘onClose’,
actionUrl: ‘/money/onboarding/’
}));
}}
>
Open an account

{/* CTA Desktop*/}



Open an account

Read more
Dec
29
2025

Free California HELOC Payment Calculator

By | mortgage | Comments Off on Free California HELOC Payment Calculator


California HELOC Calculator

By SoFi Editors | Updated December 18, 2025

Understanding the equity in your home is a critical component of modern financial strategy. The California HELOC payment calculator is a valuable first step, translating abstract financial concepts into tangible figures for personal planning. This free HELOC calculator helps you estimate your monthly payments and total interest costs, before you formally apply for a line of credit with a lender.

By demystifying these figures, the calculator helps you grasp the key concepts you need to know before deciding if a HELOC is the right choice for your financial goals.

  • Key Points
  • •   HELOCs and other home equity financing options allow you to use your home as collateral to secure funds.
  • •   A HELOC is a revolving line of credit that operates in two phases: a draw period (often 10 years) when you can borrow funds, and a subsequent repayment period (typically 10 to 20 years) when you repay the principal and interest.
  • •   You pay interest only on the amount you have borrowed from your credit line, not on the entire credit limit available to you.
  • •   HELOCs usually come with a variable interest rate, which can change over time. This contrasts with the fixed interest rate commonly associated with a traditional home loan.
  • •   To qualify, lenders generally require that homeowners have a minimum of 15% equity in their home. Qualified borrowers may be able to access up to 90% of their home equity.



Calculator Definitions

•   HELOC Balance: The HELOC balance is the total amount of principal that a borrower currently owes on their line of credit.

•   Current Interest Rate: This is the rate at which interest accrues on your outstanding balance. For most HELOCs, this is a variable rate that can change over time in response to market shifts.

•   Draw Period: The draw period is the specific time frame, often lasting between 5 and 10 years, during which you can access funds from your HELOC up to your approved credit limit.

•   Repayment Period: The repayment period is the phase that begins after the draw period ends, typically lasting 10 to 20 years. During this time, you can no longer borrow funds and must make regular payments on both the principal and interest.

•   Monthly Interest Payment: This refers to the minimum payment required during the draw period. Some HELOCs allow for interest-only payments during this phase, which cover the interest accrued on the borrowed amount but do not reduce the principal balance.

•   Monthly Principal and Interest Payment: This is the standard payment made during the repayment period. It includes a portion of the principal balance and the accrued interest, and is designed to pay off the line of credit over the specified term.

•   Total Interest: This figure represents the cumulative amount of interest you will pay over the life of the HELOC. It includes all interest payments from the beginning of the draw period through the end of the repayment period.

How to Use the California HELOC Calculator

A HELOC payment calculator is a straightforward tool designed to demystify how a HELOC works. By inputting a few key pieces of financial information, you can get a clear estimate of what your payments could look like, providing a solid foundation for financial planning.

Step 1: Enter Your Planned or Actual HELOC Balance

Enter the outstanding principal balance on your current HELOC. If you are exploring a new line of credit, input the potential amount you are thinking about borrowing to see how it might affect your budget.

Step 2: Estimate Your Interest Rate

Input the annual interest rate for your line of credit. Since most HELOCs feature variable rates that can fluctuate, this figure will be used as an estimate to model potential payments and interest costs.

Step 3: Choose the Length of the Draw Period

Enter the duration of the draw period for your HELOC, which is typically between 5 and 10 years. This is the period during which you can access funds, and its length affects the overall timeline of your line of credit.

Step 4: Select Your Repayment Period

Enter the length of the repayment period, which often ranges from 10 to 20 years. This phase follows the draw period and determines the schedule over which you will pay back the principal and accumulated interest.

Step 5: Review Your Results

The HELOC payment calculator will provide you with estimated figures, including your potential monthly payments during both the draw and repayment periods, as well as the total interest you might pay over the life of the line of credit. Remember that these numbers are estimates intended for planning and informational purposes.

These estimated results provide a financial snapshot. To fully understand the mechanics behind these numbers, let’s explore in detail what is a home equity line of credit?

What Is a Home Equity Line of Credit?

A home equity line of credit, or HELOC, is a flexible financial tool available to homeowners who have built up equity in their property. Understanding its mechanics is the first step toward determining if it aligns with your financial strategy for how to get equity out of your home.

A HELOC is a revolving line of credit that functions much like a credit card but is secured by the equity in your home. Your home equity is the difference between the property’s current market value and the amount you still owe on your mortgage. Because the line of credit is secured by your home, lenders typically offer more competitive interest rates compared to unsecured options like credit cards or personal loans.

HELOCs are structured in two distinct phases. The first is the draw period, which typically lasts 5 to 10 years. During this time, you can withdraw funds as needed, up to your approved credit limit, and you are often only required to make payments on the interest that accrues on your outstanding balance. A HELOC interest-only calculator can give you the payment info for that first phase only.

Once the draw period ends, the repayment period begins, usually lasting 10 to 20 years. During this phase, you can no longer withdraw funds, and your required monthly payments will increase significantly to cover both the principal balance and the interest. Homeowners should use a HELOC repayment calculator to prepare for this transition, to ensure the new, larger payment fits their long-term budget.

Most HELOCs have variable interest rates, meaning the rate can fluctuate over time. This is a key distinction from a standard home equity loan, which usually offers a fixed interest rate and a predictable monthly payment schedule.

Accessing the funds from your HELOC is designed for convenience. Common methods include using special checks provided by the lender, a dedicated debit or access card, or transferring money directly to your checking account through online banking.

With these mechanics in mind, a specialized free HELOC calculator becomes the essential tool for translating these concepts—like draw periods and variable rates—into personalized, actionable figures.

Recommended: HELOC vs. Home Equity Loan

The ability to secure and utilize different types of home equity loans is directly tied to the amount of equity a homeowner possesses, a figure that is heavily influenced by the dynamics of the housing market.

In recent years, rising home prices have impacted homeowners and prospective buyers in different ways. While appreciating home values can make it more challenging for first-time buyers to enter the market, this same trend has led to a significant “spike in home equity” for existing homeowners. As property values increase, the gap between a home’s market worth and the owner’s outstanding mortgage balance widens, creating more accessible equity.

Many homeowners, particularly in high-value states like California, may have more equity than they realize. Even those who have owned their homes for just a few years may find they have built enough equity to meet the minimum 15% lender requirement sooner than they might have expected, especially if they purchased in a rapidly appreciating market.

In California, home equity has increased 79% over the last five years. As a result, homeowners are sitting on a huge amount of equity: $348,200 on average. That’s more than enough to fund a home renovation or other large purchase and still maintain a comfortable equity cushion.

How to Use the HELOC Calculator Data to Your Advantage

The data generated by a HELOC payment calculator is more than just a set of numbers; it provides actionable insights that can be used to make sound financial decisions. By translating your home equity into concrete borrowing potential and estimated costs, the calculator empowers you to plan strategically for your financial future.

•  Budgeting for major projects: The estimated monthly payments for both the draw and repayment periods can be directly integrated into your household budget. This allows you to realistically assess the affordability of a large-scale project, such as a kitchen remodel or adding a new pool. By understanding the potential impact on your monthly cash flow, you can plan renovations without overextending your finances.

•  Evaluating debt consolidation: If you are considering using a HELOC to consolidate high-interest debt, the calculator’s output is essential. You can compare the estimated monthly payment and total interest paid on the HELOC against the combined payments and interest costs of your current credit cards or personal loans. This direct comparison will reveal whether consolidation would result in genuine savings and a more manageable single payment.

•  Informed lender conversations: Approaching a lender with a clear understanding of your borrowing capacity and estimated payments puts you in a position of strength. Instead of starting from scratch, you can have a more productive and confident discussion about your financial options, armed with realistic expectations and a solid baseline for negotiating terms.

•  Understanding long-term impact: The calculator’s estimate of the total interest paid over the entire life of the HELOC provides a crucial long-term perspective. This figure helps you appreciate the full cost of borrowing and encourages a responsible approach to using the funds, ensuring that the benefits of the project or expense outweigh the long-term interest costs.

Armed with these insights, it becomes easier to follow best practices for managing this powerful financial tool.

Tips on HELOCs

While a HELOC can be a powerful and flexible financial tool, it requires careful and responsible management to avoid pitfalls. The following tips are designed to help you use your line of credit wisely, ensuring it serves as a benefit rather than a burden.

•  Shop and compare lenders: Do not settle for the first offer you receive. Take the time to compare options from multiple lenders, including banks, credit unions, and online providers. Look beyond the advertised interest rate and scrutinize the full terms. Pay close attention to potential fees, such as annual fees, inactivity fees, and early termination or prepayment penalties, as these can significantly impact the overall cost of borrowing.

•  Develop a clear repayment plan: Treat your home equity with the respect it deserves as a significant asset. Avoid the temptation to use HELOC funds for depreciating assets or discretionary lifestyle spending without an ironclad repayment strategy. Every draw should be an investment—in your property’s value or your family’s financial health—not a liability that puts your home at risk.

•  Prepare for the repayment period: One of the most common surprises for HELOC borrowers is the significant increase in monthly payments when the line of credit transitions from the interest-only draw period to the principal-and-interest repayment period. Use a HELOC calculator to estimate what these future payments will be and ensure they fit comfortably within your long-term budget to avoid “payment shock.”

•  Understand the risks of variable rates: Most HELOCs come with a variable interest rate, which means your monthly payment can increase if market rates rise. You must be financially prepared for potential fluctuations in your payment obligations. Budgeting for a rate that is higher than the current one can provide a valuable financial cushion.

•  Maintain your financial health: Lenders look for strong financial credentials when approving a HELOC. This typically includes a credit score of 640 or higher and a debt-to-income (DTI) ratio below 45%. (To learn your DTI, add up all your monthly debt payments and divide by your gross monthly income.) Before applying, review your credit report for any errors, and work on managing your overall debt to position yourself for the best possible interest rate and terms.

While a HELOC is a strong option for many, it’s also wise to consider other financial products that might better suit your needs.

Alternatives to HELOCs

A HELOC is just one of several ways to access home equity or secure financing for a major expense. The best choice depends entirely on your individual financial circumstances, your goals, and your comfort with different repayment structures. It is always wise to evaluate all available options before making a decision.

Home Equity Loan

A home equity loan, often called a second mortgage, provides a one-time lump sum of cash that you borrow against your home’s equity. It is known for its fixed interest rate and predictable, regular monthly payments over a set term, making it a good option for those who know the exact amount they need for a specific project. A home equity loan calculator can help you compare the cost of this product to that of a HELOC.

Recommended: What Is a Home Equity Loan?

Home Improvement Loan

A home improvement loan is a type of personal loan specifically intended for financing home renovations and repairs. It is typically an installment loan, which means it comes with a fixed interest rate and predictable monthly payments. Because it’s not secured by your home, the interest rate is usually higher than that of a home equity loan.

Personal Line of Credit

A personal line of credit (PLOC) is an unsecured revolving line of credit that functions similarly to a HELOC (and a credit card) but does not use your home as collateral. Because it is unsecured, a PLOC may have a higher interest rate and a lower credit limit compared to a HELOC.

Cash-Out Refinance

A cash-out mortgage refinance replaces your current mortgage with a new, larger one. The difference between the new mortgage amount and your old mortgage balance is paid to you in cash. This consolidates your debt into a single mortgage payment but resets your mortgage term.

When comparing a cash-out refinance vs. home equity line of credit, you should understand that the former leaves you with one payment. The latter gives you a second payment on top of your original mortgage payment.

Understanding these alternatives provides a broader context for making the best financial choice for your future.

The Takeaway

A California HELOC calculator is a smart first step for any homeowner considering tapping into their home equity. It provides a clear, no-commitment estimate of borrowing power and potential costs, transforming a complex financial product into a manageable set of figures for planning. This preliminary step of calculation is not just about numbers; it’s about empowerment. It enables homeowners to make strategic, well-informed financial decisions regarding their most significant asset.

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

Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.


View your rate

FAQ

What is the difference between a HELOC and a home equity loan?

A HELOC is a revolving line of credit with a typically variable interest rate, allowing you to borrow and repay funds as needed during a draw period. A home equity loan provides a one-time lump sum of cash with a fixed interest rate and predictable monthly payments from the start.

How much can I borrow with a HELOC?

Lenders typically allow you to borrow up to 90% of your equity. The exact amount depends on your creditworthiness, your income, your other debts, and the lender’s policies.

What can I use the money for from a HELOC?

You can use HELOC funds for almost anything, including home improvements, debt consolidation, educational expenses, medical bills, or other major purchases. However, borrowing against your home should be done with a clear purpose and a repayment plan.

Is a HELOC interest rate fixed or variable?

Most HELOCs have a variable interest rate that is tied to the U.S. Prime Rate. This means the rate, and your monthly payments, can change over time. Some lenders may offer a fixed-rate option.

What happens when the draw period ends?

When the draw period ends, the repayment period begins. You can no longer borrow from the line of credit, and your required monthly payments will increase to include both principal and interest.

What is the benefit of having a variable interest rate?

A variable interest rate can fluctuate with market conditions. While this means your rate could increase, it also means it could decrease if benchmark rates fall, which would lower your monthly interest payments.

Are there closing costs or fees for a HELOC?

Yes, HELOCs can have closing costs, typically ranging from 2% to 5% of the credit limit, though some lenders may waive them. Other potential fees include annual maintenance fees, inactivity fees, and early termination penalties.

What is the minimum credit score I need to qualify for a HELOC?

Requirements vary by lender, but a credit score of at least 640 is usually necessary to qualify, and many lenders like to see 680 or above. And a score of 700+ will help borrowers secure the most competitive interest rates.

Is the interest on a HELOC tax-deductible?

Interest paid on HELOCs and home equity loans may be tax-deductible. There are limits on the total amount of mortgage debt on which interest can be deducted, and in order to capture this deduction a homeowner would need to itemize deductions on their tax return. Your best move is to consult a tax advisor.

Learn more about mortgages:




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

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


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


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.

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


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.


SOHE-Q425-055

Browse other home guides.

Get prequalified in minutes for a SoFi Home Loan.


View your rate


Learn more

Read more
Dec
26
2025

Medical Student and Veterinary School Graduate Loans | SoFi

By | Uncategorized | Comments Off on Medical Student and Veterinary School Graduate Loans | SoFi



MEDICAL AND VETERINARY STUDENT LOANS

Get the funding
you need to pay for
medical school, STAT.


View your rate


Checking your rate will not affect your credit score.✝︎

Don’t let changes to federal graduate loans stop you from achieving
excellence. SoFi is here to help with simple, flexible private student
loan options to pay for your med or vet school education—covering
MD, DO, DPM, DVM, and VMD degrees.


View your rate


Checking your rate will not affect your credit score.✝︎



Received a mailer from us?  (window.sofiUtils.triggerModalById(‘dm-confirmation-offer-landing’, this))} > Enter confirmation #

Your medical school loan comes with benefits—whether caring for humans or animals.

Our graduate student loans are designed to give you peace of mind so you can focus on your studies.

All online. All easy.

Finish our online application in minutes—and adding a cosigner is just as easy.

Competitive rates.

A lower interest rate could now translate to a smaller debt burden after graduation.

No fees required.

That means no origination fees, no late fees, and no insufficient funds fees. Period.

Exclusive SoFi member benefits.

Including exclusive rate discounts1, access to financial planning resources2, and more.


View your rate



 
Checking your rate will not affect your credit score.†

Grad school loan rates for medical and veterinary students.

Choose from a fixed or variable graduate student loan.

Fixed

3.43% – 15.33% APR*

with all discounts

Variable

4.64% – 16.36% APR*

with all discounts



Not sure which to choose?

Learn more →

SoFi’s medical and veterinary school graduate loans are tailored to fit your needs.

Get up to 100% of your school-certified costs covered.

SoFi gives you 36 months of a grace period to account for your residency programs.

Defer up to 48 months during your residency, fellowship, or other surgical disciplines.

Repayment options include our newest offering, a 20-year term.



View your rate



 
Checking your rate will not affect your credit score.†

It’s not brain surgery. We made applying for a medical or veterinary student loan fast and simple.

Screen images simulated.

  • Apply online in just minutes.

    Get your rate fast and find out if you’re pre-qualified before you even finish your application. Easily add a cosigner in just a few clicks.

  • Select your rate and repayment option.

    Choose from fixed or variable rates. Then, pick from four repayment options.

  • Sign and accept your loan.

    Upload screenshots of your info, sign your paperwork electronically, and boom—it’s done. We’ll handle it from here.



View your rate



 
Checking your rate will not affect your credit score.†

Make repayment fit into your life.

Our repayment options allow you to choose what will work with your budget and lifestyle.

Deferred

Start paying principal and interest payments six months after you leave school.

  • No payments while in school
  • Highest overall cost option

Interest only

Pay only interest payments while you’re in school.

  • Moderate payment while in school
  • Reduces overall cost

Partial

Pay a $25 fixed monthly payment while you’re in school.

  • Lowest payment option while in school
  • Reduces some of the overall cost

Immediate

Start paying principal and interest payments right away.

  • Highest payment option while in school
  • Lowest overall cost option


View repayment examples

Medical and veterinary graduate student loan FAQs


What degree types are eligible for SoFi’s medical and veterinary school loan?
SoFi is here to help with simple, flexible private student loan options to help pay for your medical or veterinary school education. Eligible degree types include MD, DO, DPM, DVM, and VMD degrees.


What expenses can a SoFi medical and veterinary school loan cover?

SoFi’s medical and veterinary loans can be used for up to 100% coverage of school-certified expenses. This includes tuition, fees, technology, housing, and more.



Can I defer loan payments while in medical school or residency?

Yes. SoFi’s medical and veterinary loans allow you to defer up to 48 months during your residency, fellowship, or other surgical disciplines.



What is a grace period? What is the grace period for SoFi’s medical loan?

SoFi’s medical and veterinary loans offer a 36 month grace period to account for your residency programs. Please keep in mind that interest continues to accrue during this time. If your residency is less than 36 months, you may request to start full principal and interest payment sooner to reduce the cost of your loan. SoFi has no penalties for prepayment or beginning full principal and interest payments prior to the end of school or the grace period which may reduce the overall cost of the loan.


How do SoFi medical and veterinary school loans compare to Federal Grad PLUS loans?

The Federal Direct Grad PLUS loan program is being eliminated for new borrowers of all types starting July 1, 2026. SoFi’s medical and veterinary school loans are an option to consider for students who can no longer use Federal Grad PLUS loans.
Key differences between Federal Grad PLUS and SoFi’s medical and veterinary school loans include: interest rate options, origination fees (which SoFi does not have), term and repayment options. Federal Grad PLUS loans have fixed interest rates for the life of the loan with limited term and repayment options. SoFi’s medical and veterinary loans offer both fixed and variable rate types to select from, as well as five repayment term options. Additionally, Federal Grad PLUS loans have origination fees.
Federal loans allow you to be eligible for certain types of forgiveness and unique income-based repayment plans. Please carefully consider all of your borrowing options at both a federal and private level.



Do I need a cosigner to qualify for a SoFi medical and veterinary school loan?

No, you do not need a cosigner to qualify for a SoFi medical and veterinary school loan. However, cosigners could help you get a lower rate and/or increase your chances of approval. With SoFi’s online application process, you and your cosigner can see what rates and terms you pre-qualify for before submitting your full loan application—and it won’t impact your credit score.



What are the borrowing limits for SoFi medical and veterinary school loans?

SoFi’s medical and veterinary loans can be used for up to 100% coverage of school-certified expenses.



When do repayment and interest begin on SoFi medical or veterinary school loans?

This will depend on the loan terms that are selected. If you choose the deferred repayment option, full principal and interest payments can be deferred as long as you remain enrolled at an eligible school at least half-time. Full principal and interest payments would begin 36 months after the student graduates or drops below half-time enrollment. Borrowers who have selected immediate repayment will begin full principal and interest payments upon first full disbursement of the loan. You would only begin payments on the amount disbursed. Medical and veterinary school loans are also eligible for a 20-year repayment term.


See more FAQs



Read more
Dec
26
2025

Is 675 a Good Credit Score?

By | Uncategorized | Comments Off on Is 675 a Good Credit Score?


Is 675 a Good Credit Score?

675 credit score

On this page:

    On this page:

      By Laurel Tincher

      (Last Updated – 12/2025)

      A 675 credit score is considered a good score, but it’s at the very low end of that range. This score can definitely be high enough to open some doors for you financially speaking, but it may not be high enough to get the most favorable terms for, say, a mortgage or car loan.

      Read on to learn more about the answer to “Is 675 a good credit score?” and learn how to build that important three-digit number.

      Key Points

      •   A 675 credit score is considered good but is at the lower end of this range.

      •   With this score, you can qualify for loans and credit cards, but with less favorable terms.

      •   Potential drawbacks include higher interest rates and fewer rewards on credit cards.

      •   To improve your credit score, pay bills on time and keep credit card balances low.

      •   Regularly check credit reports for errors and avoid multiple new credit applications.

      What Does a 675 Credit Score Mean?

      A FICO® Score of 675 falls into the low end of the good credit range, which typically runs from 670 to 739. Despite not fitting into the excellent or upper reaches of the good categories, a score of 675 indicates a responsible credit history. Here’s how FICO categorizes its scores:

      •   Excellent: 800 to 850

      •   Very Good: 740 to 799

      •   Good: 670 to 739

      •   Fair: 580 to 669

      •   Poor: 300 to 579

      Credit score ranges are used by lenders to evaluate the risk involved in giving credit to someone. A score of 675 indicates that the applicant has exhibited a moderate degree of creditworthiness. This may indicate a track record of:

      •   On-time debt payments

      •   A manageable debt-to-income ratio

      •   Overall healthy financial standing

      It’s important to remember that a credit score of 675 can be built. When applying for loans or credit cards, those in the 675 range can pay a little bit more in interest than people with higher scores. If you had a higher credit score, you might be offered a lower annual percentage rate, or APR.

      Gaining a better understanding of the factors that impact credit scores (and making a concerted effort to build yours) can lead to better terms and financial prospects.

      💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. One question can save you many dollars.

      What Else Can You Get with a 675 Credit Score?

      People with a credit score of 675 can qualify for a range of financial products, though there might be some restrictions. Even if they are eligible for credit cards, their interest rates and benefits might not be as good as those offered to those with better credit scores. For large expenditures like a home or car, lenders may grant loans, but the interest rates may be on the higher end.

      Reducing outstanding debt, avoiding late payments or defaults, and making consistent, on-time payments are all critical steps that can build one’s score. People who work to keep or build their credit score put themselves in a better position to access a wider variety of financial products with better terms and conditions.

      Can I Get a Credit Card with a 675 Credit Score?

      It is possible to get a credit card with a 675 credit score, and you may have several solid options from which to choose. However, there are rewards if you build your score even higher, including possibly a lower APR and/or fees or access to enhanced rewards.

      By using a credit card responsibly, you can work to build your score. It’s worth noting that the single biggest contributing factor to your score is your credit history, meaning on-time payments. Set up payment alerts or opt into automatic payments to help ensure that you pay your bill on time, every time.

      💡 Quick Tip: Generally, the larger the personal loan, the bigger the risk for the lender — and the higher the interest rate. So one way to lower your interest rate is to try downsizing your loan amount.

      Can I Get an Auto Loan with a 675 Credit Score?

      You can get an auto loan with a credit score of 675, but the terms and interest rates might not be as good as what is available to people with higher credit scores. You will find that offers may well vary from lender to lender.

      Worth noting: 690 was found to be the average score among those who get a used car loan. Those buying a new car typically have a score of 757 or above.

      That said, those with a credit score of 675 should shop around. You may find that if you can make a higher down payment, you could be rewarded with terms you find more affordable.

      Recommended: Why Your Debt-to-Income Ratio Matters

      Can I Get a Mortgage with a 675 Credit Score?

      With a credit score of 675, you will likely be approved by a mortgage lender with what’s considered a good interest rate. But you may not receive the best rate — that’s often reserved for those with high scores, such as 740 and above.

      In order to improve your chances of getting approved for a mortgage with more favorable terms, you may want to think about other aspects that lenders take into account, like:

      •   A steady job history with a reliable income

      •   A larger down payment.

      Also, know that if your credit score is below 675, there are still options to be found:

      •   You may be able to find a conventional loan with a score of 620 or higher.

      •   You may qualify for a FHA loan with a credit score of 500 or higher.

      •   You may qualify for a VA or USDA loan with a credit score of 640 or higher.

      Can I Get a Personal Loan with a 675 Credit Score?

      With a credit score of 675, you can usually qualify for a personal loan. This can be good news, since personal loans can be used in a variety of ways, such as debt consolidation, home renovations, or medical bills.

      However, you may find that not all lenders approve you; some prefer prospective borrowers to have credit scores in the 700s. And those that do offer you a loan may not have the best terms, such as the lower APRs.

      In other words, it’s in your best interests to shop around and see what offers are available. It can also help to follow the steps mentioned above to build your score, such as always paying bills on time, keeping your amounts owed low (under 30% of your credit limit), and not applying for too much new credit at the same time.

      Recommended: Can You Refinance a Personal Loan?

      Takeaway

      Is a 675 credit score good? Yes. A FICO Score of 675, which is at the lower end of the good range, is typically high enough to qualify for loans and mortgages. However, you may have to pay a little bit more in interest and have less favorable terms than people with better scores. You also may benefit from building your score a bit higher before applying for a loan. You might qualify with more lenders and for better terms.

      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.


      SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

      View your rate

      Photo credit: iStock/PeopleImages

      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.


      Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .



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

      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.



      Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

      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.

      SOPL-Q425-085

      Read more
      SoFi Daily

      Stay up to date on the latest business news and stock market happenings.

      Learn more

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

      ✝︎ To check the rates and terms you 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.

      INVESTMENTS: NOT FDIC INSURED • HAVE NO GUARANTEE • MAY LOSE VALUE. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. The SoFi Wealth platform is operated and maintained by SoFi Wealth LLC, an SEC Registered Investment Advisor. Brokerage services are provided to clients of SoFi Wealth LLC by SoFi Securities LLC, an affiliated broker-dealer registered with the Securities and Exchange Commission and a member of FINRA /SIPC . Clearing and custody of all securities are provided by APEX Clearing Corporation. For more information, please see SoFi Wealth LLC’s Form ADV Part 2 by clicking here for SoFi's Wealth Form ADV Part 2 A&B or by visiting www.adviserinfo.sec.gov .
      ©2026 Social Finance, LLC All rights reserved.
      TLS 1.2 Encrypted
      Equal Housing Lender