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YA 565 credit score is not good. According to FICO® (the most popular credit scoring model), a 565 credit score is considered “poor” and below the average of U.S. consumers. Borrowers with this credit score could have a difficult time qualifying for new loans and might not receive very favorable terms if approved.
Here’s what a 565 credit score means in practice when it comes to getting a credit card, mortgage, and other types of financing.
Key Points
• A 565 credit score falls into the poor range, which runs from 300 to 579.
• With a poor score, it can be challenging to qualify for loans and lines of credit; those that are available typically assess higher interest rates and lower credit limits.
• A secured credit card can be a good option for those who don’t qualify for a traditional credit score due to a poor credit score.
• FHA home loans may be available with a 10% down payment for those with a poor credit score.
• To build a credit score, it’s important to always make debt payments on time, keep credit utilization below 30%, and keep older accounts open, among other factors.
What Does a 565 Credit Score Mean?
A credit score is a three digit number that shows a borrower’s ability to repay debt and stay current on payments. Lenders use these scores to assess the risk of lending money and make decisions about loan approval, interest rates, and credit limits.
FICO Score is the most widely used credit scoring model in the U.S. On this scale, scores range from 300 to 850. The higher your credit score, the more creditworthy you’re considered by lenders.
Here’s a breakdown of FICO Score ratings and ranges:
• Poor credit: 300-579
• Fair credit: 580-669
• Good credit: 670-739
• Very Good credit: 740-799
• Exceptional (or exellent) credit: 800-850
So is a 565 credit score good or bad? A 565 credit score falls within the “poor” credit range, which accounts for about 13% of American consumers. For comparison, the average FICO Score in the U.S. was 715 in 2024, and around 71% of Americans have a “good” score or better.
Your credit score is based on a number of factors, including payment history, amounts owed, length of credit history, credit mix, and new credit. A credit score of 565 could indicate a limited credit history, delinquency on payments, or other financial problems.
Note that a 565 credit score is just below the range for a “fair” credit score. This means that borrowers could implement some strategies to build credit and improve their chance of qualifying for financing and more competitive terms.
While borrowers with poor credit may face challenges qualifying for financing, it’ll ultimately depend on the lender’s credit requirements and how they evaluate other financial information.
What Else Can You Get with a 565 Credit Score?
If you have a 565 credit score, your options for a credit card or loan may be more limited than a borrower with fair or good credit. Instead, lenders may offer what are known as subprime loans, which typically carry higher interest rates, additional fees, and lower borrowing limits. Borrowers may also need to put down collateral to qualify and secure financing, depending on the lender.
Borrowers with poor credit may have difficulty getting approved for a credit card. The cards you are offered may have high interest rates and low credit limits. Typically, you need a fair score to begin to access better deals on credit cards. If you can build your score higher, you might begin to qualify for rewards credit cards.
If you’ve been rejected on a standard credit card application, you may want to look into a secured credit card.
A secured credit card requires collateral in the form of a security deposit — usually a minimum of several hundred dollars — to reduce the risk of default for the credit card issuer. The security deposit is refundable and typically equivalent to the credit limit.
Keep in mind that secured cards generally carry higher interest rates, so paying the balance in full each month can help avoid hefty interest charges. Additionally, secured cards may be subject to a variety of fees, so it’s worth comparing multiple credit card options. That said, a secured credit card, when managed well, can help you qualify for a traditional credit card.
To help build your credit score, there are several steps you can take.
• It’s recommended to maintain a credit utilization ratio at or below 30%. Your credit utilization is the portion of your revolving credit limit, such as credit cards, that you’re using. If your credit limit is capped at $400, this means keeping a balance below $120. Thus, you might consider making a larger deposit to have some greater flexibility and wiggle room in spending.
• Another way to positively impact your credit is to always pay bills on time. That’s the single biggest contributor to your credit score.
• Aim for a mix of credit products, such as a line of credit and an installment loan.
• Know that a longer credit history helps build your score. That means it’s wise to keep older accounts open, using them occasionally.
• Avoid too many requests for credit in a short period of time. That can negatively impact your credit.
With a 565 credit score, car loan options will likely be limited to subprime loans. This means that you can expect to pay a higher interest rate than borrowers with stronger credit. For example,the average auto loan interest rate for new cars for subprime borrowers (with a score of 501-600) was 13.00% in the 3rd quarter of 2024, compared to 6.70% for those with credit scores between 661 and 780.
While some lenders may not work with borrowers with poor credit, many car dealers can help you explore options for those with lower credit scores. This could make a 565 credit score car loan possible. Having a trade-in vehicle or funds for a down payment could improve your chances of qualifying and secure better terms on an auto loan.
With any auto loan, it’s important to review the terms and how the monthly payment fits in your budget before committing.
Yes, you can get a mortgage with a 565 credit score. However, you won’t meet credit requirements to qualify for certain types of home mortgage loans. For example, you won’t meet the criteria for a conventional home loan. These typically require a score of 620 or higher. However, you may access these mortgages:
• Federal Housing Administration (FHA) loans, which are backed by the government and reserved for first-time homebuyers, are available to borrowers with a credit score of 500 or higher. If your credit score falls between 500 and 579, however, you’ll need to make a down payment of 10%.
FHA loans require only a 3.5% down payment for borrowers with a credit score of 580 or higher. So if you’re in the market for a house with a 565 credit score, you might consider working to build your credit score and secure a lower down payment on a FHA loan.
• You may also be able to qualify for VA loans and USDA loans though these typically require credit scores above 565 (in the 600s) to qualify. If, however, you have a strong repayment history, you might find a lender willing to offer you financing.
Can I Get a Personal Loan with a 565 Credit Score?
You might have trouble qualifying for personal loans with a 565 credit score. A credit score in the fair vs. poor range could improve the likelihood of qualifying for a personal loan, though at a high interest rate.
Once you’re able to qualify, a personal loan can be used for almost any purpose, such as paying for a vacation or financing a wedding.
If your rationale for a personal loan is to pay off high-interest debt, such as a credit card consolidation loan, you may not secure a low enough interest rate to make it worthwhile.
To secure a more competitive rate, you might consider using collateral for a personal loan. Or you might work on building your credit score first, as outlined above.
A 565 credit score isn’t good. Rather, it’s categorized as poor. With this score, you may have a hard time qualifying for credit, and the offers you do receive will likely be at a less favorable rate. Still, a 565 score is close to 580, which is the lower end of the fair range, so working to build your credit score by several points could unlock more affordable credit. Always compare offers from multiple lenders when possible to find the best deal before committing, whether for a credit card offer or a personal loan.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
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 .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
By Lindsay VanSomeren |
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Comments Off on Is 2025 the Year for Travel Insurance?
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Putting the final touches on your 2025 travel plans is an exciting time. What’s not so exciting? Thinking about all of the things that could go wrong.
Forty-four percent of would-be travelers are worried about delays and cancellations this year, and one in five are even avoiding travel because of it, according to a recent survey from a unit of Fidelity National Financial.
And it’s understandable. There’s always that lingering worry that you or your loved ones will get sick before or during a big trip, but nowadays all the extreme weather can make travelling feel pretty unpredictable. And then there is the state of the world. It’s hard not to consider how overseas wars and other international political turbulence could affect your plans.
One way to protect yourself — financially, at least — is travel insurance. But how does it work and is it worth the cost? Now’s a great time to learn more.
Types of Travel Insurance Plans
Travel insurance can be confusing, partly because different types cover different things. People often misuse terms, too, referring to various forms of coverage interchangeably. And there are lots of rules and stipulations about the amount of coverage and the circumstances, all of which can vary by provider.
To try to simplify things, here’s a quick breakdown. Travel insurance is generally the umbrella term used to describe four main types of protection:
• Trip cancellation: The biggie. If you can’t travel for certain reasons outside of your control, you can get back some or all of the money you’ve already paid. Covered reasons may include illness, the death of a non-traveling family member, weather, an unforeseen natural disaster, or a legal obligation like jury duty. The key is what’s listed in the policy. (If you’re worried about political unrest or other things that aren’t listed, you might be able to pay extra to add a “cancel for any reason” provision to your policy. Just know that this will cost more and usually only cover 50% to 75% of a trip’s cost.)
• Trip interruption/delay: While trip cancellation covers trips before they begin, this covers trips that are cut short or otherwise interrupted. It can be something as simple as your flight is delayed, causing you to miss connecting flights you’ve already paid for. Sometimes lodging and other expenses are covered while you’re waylaid, too.
• Baggage: Losing your luggage is a huge pain. A lost baggage policy pays you for personal belongings lost or stolen in transit, and a baggage delay policy covers things you need to buy while waiting for your suitcase to catch up to you.
• Medical care: Travel medical insurance pays the doctor bill while you’re abroad, while emergency evacuation insurance foots the bill to bring you stateside again if needed.
Sound like a lot? It is. But you can often get more comprehensive plans that bundle more than one type. Just remember, it’s on you to make sure that your coverage has all the features you want.
Cost of Travel Insurance
Having this type of extra peace of mind is great, but the key question is whether it’s worth the cost, right? A typical bundled travel insurance policy usually costs between 4% and 8% of the price of a trip, according to the U.S. Travel Insurance Association. That’s for trip cancellations and delays, baggage loss and delays, and travel medical coverage and evacuation costs.
(If you’re wondering, SoFi doesn’t offer travel insurance. But if you want to free up some of your travel budget for insurance, consider checking out the hotel deals SoFi offers members who book travel in the SoFi app.)
How to Decide Whether to Get Travel Insurance
Start with this basic question: Can you afford the financial hit if (insert possible travel fiasco here) happens? Can you handle either paying double to book a second trip, or skipping it altogether? If not, it’s a good idea to consider travel insurance. You’ll also want to check the coverage you either already have or are being offered when you book the vacation.
• Consider your risks: What will you be doing on the trip? Do you have health conditions that might require you to make an early exodus? Consider emergency evacuation coverage. What about your stuff? If you’re just packing shorts and t-shirts for your summer getaway, then maybe you’re not worried about losing your luggage. But if you’re bringing along your spiffy new stand-up paddleboard, the scales might tip in the “buy insurance” direction.
• Check your existing coverage: See what’s covered and what isn’t. Health insurance here doesn’t necessarily apply abroad. (Medicare and Medicaid won’t cover you overseas, for instance.) But many credit cards offer some travel insurance benefits and you may be able to use your auto policy for renting a car or your renters or homeowners coverage for baggage theft.
• See what you can get through your airline, hotel or tour operator: Travel insurance can often be purchased from travel agents and travel suppliers as well as insurance companies and brokers. So shop around to see who has the best prices for the most comprehensive coverage.
Really Read the Fine Print
Travel insurance works a bit differently from other insurance you’re used to. It can be a bit scattershot, and you don’t want to get caught off guard without protection you thought you had.
Case in point: If a tree falls on your home, your homeowners insurance will cover the damage. But what if that fallen tree keeps you from going on a trip? Will travel insurance cover your costs? Maybe not. Since travel insurance is for unforeseen events, it typically doesn’t cover claims related to a tropical or winter storm if you bought the insurance after the storm was on the radar.
These kinds of variables make it especially important to read and understand the fine print before you buy any coverage. Your credit card might offer a loss damage waiver when you rent a car, for example — but it’s usually secondary coverage, meaning it doesn’t kick in unless you file a claim with your own auto insurer or the rental car policy first. And that could affect your auto insurance premium for years.
Another example? Medical travel insurance can help if you get sick with a nasty stomach bug — but not necessarily if you’re injured in a skiing or SCUBA diving accident. You could need special coverage for those kinds of higher-risk activities.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
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A 601 credit score isn’t bad or good — it falls squarely in the “fair” category and below the national average credit score of 715. While there’s a good chance you’ll get approved for a loan or credit card with that score, you might need to look a bit harder to land those coveted low interest rates and flexible terms.
Here, we’ll walk you through what a 601 credit score means, what types of financing you may be able to secure with such a score, and what you can do to boost your credit score.
Key Points
• A credit score of 601 is categorized as “fair” and is below the national average.
• A 601 score may limit loan and credit card options, leading to higher interest rates.
• Some lenders may still approve you for financing, including personal loans.
• Financial products you might qualify for include secured credit cards, retail cards, and FHA loans.
• Regularly paying bills on time, reducing credit card balances, and avoiding new debt can improve the score.
What Does a 601 Credit Score Mean?
A credit score is a three-digit number that reflects your creditworthiness, or how likely you are to pay back the money you borrowed. Lenders use it along with other information to determine whether to approve you for credit and at what interest rate.
Credit scores typically range from 300 to 850. The higher the number, the better your score. Although you have different credit scores, the one used in most lending decisions is the FICO Score. It’s categorized as follows:
• Poor: 300-579
• Fair: 580-669
• Good: 670-739
• Very Good: 740-799
• Excellent (or exceptional):: 800-850
As you can see, a 601 credit score is considered “fair,” which might impact whether you’re approved for credit and the terms you’re offered. If you’re preparing to apply for a loan or credit card, it’s a good idea to check your credit score so you have an idea of where your credit profile stands. Credit scores update every 30 to 45 days.
Having a fair credit score might prevent you from qualifying for some types of loans and credit cards. And the ones you are approved for may come with steeper interest rates and less-flexible terms.
However, there are some financial products you may be able to get with a 601 credit score. Let’s take a closer look.
Can I Get a Credit Card with a 601 Credit Score?
In general, the better your credit score, the better your chances of getting approved for a credit card. With a 601 credit score, your choices may be more limited. What’s more, your APR might be higher, and it’s possible you won’t qualify for cards with rewards or cash-back opportunities.
However, options do exist. Here are two to consider:
Secured cards
If you are working toward building or establishing your score, you might consider a secured card. These are cards backed by a security deposit, which acts as a form of collateral in case you fall behind on your payments. The security deposit amount and line of credit typically match each other. So if your security deposit is $500, so is your line of credit.
On the upside, a secured card usually has lower minimum credit score requirements and less-rigid financial criteria. On the downside, they also typically have higher interest rates, lower credit limits, and fewer perks.
Retail cards
Retail and store cards are cobranded cards with a store or group of retailers. You can usually only use the card at that particular store, and it may come with loyalty discounts and promotions specific to the retailer.
Retail cards tend to have lower minimum score requirements and less-stringent criteria, but they also tend to have higher interest rates. Plus, you can usually only use the card at that retailer.
Can I Get an Auto Loan with a 601 Credit Score?
Yes, it’s possible to get an auto loan with a 601 credit score, though you might end up paying more in borrowing costs. According to 2024 data from Experian, the average interest rate on a new car for a borrower with a 601 credit score is 9.83%. (That rate jumps to 13.92% for used cars.) Compare that to the 5.25% average interest rate offered to borrowers with a credit score of 781 or higher.
Can I Get a Mortgage with a 601 Credit Score?
Securing a credit card or car loan is one matter, but what about getting a mortgage on a house with a 601 credit score? It depends on the type of home loan you’re applying for. For example, borrowers usually need to have a credit score of at least 620 to qualify for a conventional loan or VA loan.
With a 601 credit score, you may want to focus on FHA loans. These loans are backed by the Federal Housing Administration (FHA) and have less-stringent eligibility requirements than a conventional loan. Borrowers with a 580 credit score are eligible with a 3.5% down payment. People with a credit score as low as 500 may also qualify; however, they’ll be required to make a 10% down payment.
It’s also worth noting that your credit score is just one factor lenders consider in their decision. They’ll also consider a range of other factors, such as your debt-to-income (DTI) ratio, earnings, and job consistency.
Can I Get a Personal Loan with a 601 Credit Score?
Personal loans can be an attractive form of financing because you can use the funds for nearly any purpose.
With a 601 credit score, your personal loan options may be more limited than they would be if you had a higher score. However, there are lenders who may consider approving you for a loan, though it could come with a higher interest rate and less-flexible terms.
Still, you may come out ahead financially if you use the funds from the personal loan to consolidate high-interest debt, such as credit cards. That’s because personal loans are generally less expensive than credit cards.
As you’re considering your options, it’s important to understand how much you’ll pay for the loan over its lifetime. A personal loan calculator can help you arrive at an estimate based on the rates and terms you’re offered.
The Takeaway
Wondering if a 601 is a bad credit score or a good one? Technically, it falls in the “fair” category, though it’s well below the average American’s credit score of 715.
Whether you’re shopping around for a mortgage, auto loan, credit card, or personal loan, you might want to consider building your credit before pulling the trigger and formally applying.
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.
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.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
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.
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.
Compare mortgage refinance rates in West Virginia.
Key Points
• Mortgage refinance rates are influenced by economic factors such as Federal Reserve policy, inflation, housing inventory, and your credit rating.
• A 1% drop in your mortgage refinance rate could lead to substantial monthly savings and keep thousands of dollars in your pocket over the loan’s lifetime.
• Refinance rates have swung from about 3.15% in 2021 to 7.00% in 2023. It’s important to time a refi well in this landscape.
• Opting for a 15-year vs. 30-year mortgage could be a smart financial move, as it can lead to considerably less interest paid over the life of the loan, despite the higher monthly payments.
• It’s wise to compare different West Virginia refi options and use online refinance calculators to see how much you could save and which loan terms suit you best.
Intro to Mortgage Refi Interest Rates
Mortgage refinancing is like hitting the reset button on your mortgage: It offers the potential to snag better terms and a lower interest rate. The type of mortgage refinance you choose and the rate you are assessed can vary depending on whether, say, you want to lower your monthly payment or access home equity.
This guide will help you understand how mortgage refinance rates are determined and how to secure the lowest available rate. Whether you’re looking to save money, adjust your loan term, or achieve any other financial goal, understanding the refinance process is crucial for making informed decisions.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Where Do Mortgage Refi Rates Come From?
Mortgage refinance rates are a product of both economic factors and your own financial situation.
• On the economic side, things like Federal Reserve policy, inflation, the bond market, and housing inventory can all play a role. Generally, high inflation and federal funds rate increases can lead to higher rates when refinancing a home loan. Low inflation and bond prices can help keep rates in check.
• The real estate market can also lead to rate shifts. When housing inventory is scarce and prices rise, so too can mortgage interest rates in West Virginia creep up.
• On the personal side, your own credit score plays a role in the rate you’ll pay if you refinance in West Virginia. If you have a strong score, showing that you have managed debt responsibly in the past, you will likely get a lower interest rate than someone with a bad score. That’s because a lower credit score indicates that you have not handled credit well in the past and could be a risk to lenders.
By keeping an eye on these factors, you can get a sense of when might be a good time to refinance.
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Interest rates play a significant role in determining the affordability of your mortgage refinance. Your monthly payment is influenced by your loan amount, the term over which you’re repaying it, and the refinance rate you secure.
Here’s a specific example to show you how the numbers can stack up:
• A $200,000 loan with a 6.00% interest rate and a 30-year term would mean a monthly payment of $1,199.
• If that interest rate were 8.00%, you’d be looking at a monthly payment of $1,467.
• Over the life of the loan, that 2% difference yields $268 more in your budget every month. And over the life of the loan, it could add up to nearly $100,000 in savings.
Even a fraction of a percentage point can make a substantial difference in interest savings (and your long-term financial picture) when you refi in West Virginia.
Why Refinance in West Virginia
Refinancing your mortgage can be a strategic move, but it’s not for everyone. There are closing costs, as well as time and effort involved. The key is to make sure the new rate and terms fit your long-term financial goals. Here’s a closer look at some reasons to refi.
Common Reasons to Refinance a Mortgage
Consider these common reasons homeowners refinance their mortgage:
• You qualify for a lower interest rate thanks to improved market conditions or having built your credit.
• You may want to adjust your repayment term to better fit your financial goals and monthly budget.
• You’re looking to tap into your home’s equity to cover costs like education or renovations.
• Your adjustable-rate mortgage is about to reset, and you’re considering a switch to a fixed-rate loan for more predictable payments.
One note about that 20% home equity figure cited above: In terms of how soon you can refinance, you typically need to hit that same amount of equity (20%) for any kind of refi, not just FHAs.
How to Get the Best Available Mortgage Refi Rate
Of course, if you are refinancing in West Virginia, you likely want the best deal possible. These are some of the top tips for securing a competitive mortgage refinance rate:
• Build your credit score by being punctual with payments, keeping your credit utilization ratio to no more than 30% (under 10% is even better).
• Keep your debt-to-income ratio under 36%.
• Compare rates from multiple lenders; your first offer isn’t always the best.
• Think about discount points (aka mortgage points) to lower your rate: By putting more money down upfront, you can save money on interest over the life of your loan.
• Choose a shorter loan term to minimize interest costs.
Understand Trends in West Virginia Mortgage Interest Rates
The mortgage refinance market in West Virginia and the U.S. has seen some big changes in recent years. By delving into those trends, keeping an eye on the market, and making a move when the time is right, you could save a lot of money on interest over the life of your loan.
Historical U.S. Mortgage Interest Rates
The history of mortgage refinance rates in the United States is a fascinating one, marked by significant fluctuations over the years. For example, in 2021, the average 30-year fixed rate was around 3.15%. Fast forward to 2023, and that number had skyrocketed to approximately 7.00%. As of early 2025, current mortgage rates aren’t much lower, nor are they forecast to drop dramatically.
These changes are influenced by a variety of economic factors, including Federal Reserve policies and market conditions. By examining current and historical trends, you can gain valuable context and make informed decisions about your refinancing options, which could lead to substantial financial gains.
That said, take a look at the graph below: It captures the ebb and flow of U.S. mortgage rates over the past few decades.
Historical Interest Rates in West Virginia
Mortgage refinance rates in West Virginia are generally in line with national trends. In the past few years, rates have seen some significant changes. The chart below chronicles almost two decades of rates in West Virginia vs. the national rate, which can help you see trends at both levels. (The data points end at 2018 since the Federal Housing Finance Agency stopped compiling state-by-state intel at that time.)
Year
West Virginia Rate
National Rate
2000
8.31
8.14
2001
7.08
7.03
2002
6.65
6.62
2003
5.87
5.83
2004
5.84
5.95
2005
6.01
6.00
2006
6.53
6.60
2007
6.46
6.44
2008
6.02
6.09
2009
5.17
5.06
2010
4.86
4.84
2011
4.72
4.66
2012
3.82
3.74
2013
3.83
3.92
2014
4.24
4.24
2015
3.99
3.91
2016
3.92
3.72
2017
4.21
4.03
2018
4.60
4.57
Source: Federal House Finance Agency
Choose the Right Mortgage Refi Type
Mortgage refinance rates in West Virginia can depend on the type of refinance you’re considering. Each option has its own unique features and advantages. Your goals (such as lowering your monthly housing costs or tapping into your home equity) can guide your decision and contribute to your rate. Now…let’s dive into some of the main options.
Conventional Refi
A conventional refinance, also known as a rate-and-term refinance, typically comes with higher interest rates than government-backed loans such as FHA, VA, or USDA (each of which has its own unique qualifying requirements).
This type of refinance is best for homeowners who want to lower their interest rate or change their loan term. Conventional refis require a minimum credit score (usually 620) and enough home equity (typically 20%). Although the rates might be higher, the flexibility and lack of government insurance could make this kind of refi the right choice for many West Virginia homeowners.
Cash-Out Refi
With a cash-out refinance, you can leverage your home equity to receive a lump sum, which can then be used for a variety of financial needs. Whether you’re eyeing home renovations or considering debt consolidation, this option could be a good fit.
Here’s an example: if your home is valued at $500,000 and you owe $300,000, you have $200,000 in home equity. You might be able to borrow up to 80% of your equity, which would leave you with considerably more than $100,000 in hand after settling your existing mortgage.
It’s important to note that these refis usually come with higher interest rates than traditional refis.
15-Year Mortgage Refi
Swapping a 30-year mortgage for a 15-year one can dramatically impact your financial situation. It can slash the total interest you’d pay over the loan’s lifetime, even though the monthly payments are higher. Need to see some numbers? Here you go:
• Say you have a 30-year, $1 million mortgage at a 7.50% interest rate. That would mean a monthly payment of about $6,992 and a staggering total interest of $1,517,167.
• But if you refinance to a 15-year mortgage at a 7.00% rate, yes, the monthly payment jumps to around $8,988, but the total interest plummets to approximately $617,891.
That’s a potential saving of nearly $900,000 and it could be a very smart money move if you’re able to manage the increased payments.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) often come with lower initial interest rates than fixed-rate loans, which can be a boon for your immediate financial goals. If you’re not planning to stay in your home for the long haul, an ARM could be a smart move. For example, if you have a 30-year fixed-rate mortgage but think you might move or refinance well before the 30 years are up, refinancing to an ARM could help you save big in the short term.
Just remember, the interest rate on an ARM can go up after the initial fixed period ends, which could raise your monthly payments and overall borrowing costs. Also know that even the best-laid plans can change, so make sure you could afford a rate hike if you don’t move when planned and stay put with a loftier interest rate.
FHA Refi
FHA refinances, backed by the Federal Housing Administration, often offer more competitive mortgage refinance rates than conventional loans. These options are typically available to homeowners with existing FHA loans, including the FHA Simple Refinance and the FHA Streamline Refinance.
If you don’t currently have an FHA loan, take heart: You may still be eligible for an FHA cash-out refinance or an FHA 203(k) refinance, which is specifically designed for home renovations and improvements. This can be a great way to increase the value and comfort of your home.
VA Refi
VA refinances, guaranteed by the United States Department of Veterans Affairs, offer some of the most competitive mortgage refinance rates available. To qualify for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA loan. These home loans are only available to active-duty and past members of the military and eligible spouses.
This type of refinance has the potential to reduce your monthly payments and result in significant interest savings over the life of the loan, making it a great option for West Virginians who meet the requirements.
💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.
Compare Mortgage Refi Interest Rates
Securing a competitive mortgage refinance rate can save you thousands of dollars over the life of your West Virginia home loan. Here are some tips to help you find the best rate:
• Shop around and get prequalified by a few lenders to compare rates and fees. (This helps you avoid hard credit pulls, which can ding your credit score.)
• Look at the annual percentage rate (APR), which reflects the true cost of borrowing, vs. just focusing on the interest rate.
• Think about buying discount points to lower your mortgage refinance rate.
• Evaluate the total price tag of the new mortgage, including mortgage refinancing costs and new monthly payments.
• Assess the break-even point to see if the savings make refinancing worthwhile. That refers to the moment when the savings of your new loan kick in, and your closing costs are in the rearview mirror.
• Use a refinance calculator to get a better idea of your potential savings.
Use an Online Refinance Calculator
Refinancing a mortgage in West Virginia involves a fair amount of numbers and mathematical calculations. Don’t let that make you sweat: Online refinance calculators can be a terrific way to get an initial look at your potential savings without a lot of effort.
They can give you an estimate of your monthly payments and costs as you compare different refinance options. This can allow you to make a more informed decision about whether a mortgage refinance is right for you and, if so, which offer is your best option.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your West Virginia mortgage can be a smart financial move, but it does require some careful thought about your financial goals and the current mortgage refinance rates. Whether you’re looking to lower your interest rate, get access to cash, or switch to a different type of mortgage or term, it’s important to understand the process and your available options. Then you can determine the best next step.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
Refinancing might cause a small, temporary dip in your credit score due to the hard credit inquiry and the addition of a new account to your credit report. But don’t worry, the impact is usually minor (several points) and short-lived, especially if you keep making payments on time. Just recognize that the exact impact of refinancing on your credit score will depend on your individual circumstances.
Do you need to pay closing costs when you refinance?
Yes, you will likely have to pay closing costs again when you refinance. These costs usually fall between 2% to 5% of the loan amount. You may be able to roll them into the ongoing cost of your loan vs. paying them in a lump sum. Just be aware that you’ll be paying interest on the closing costs that way.
How many times can you refinance your home loan?
When you’re thinking about refinancing your home, it’s important to know that there are no federal restrictions on how many times you can refinance your mortgage. But each time you do, you’ll need to pay closing costs and you could see a hit to your credit. So it’s important to weigh the potential benefits of refinancing against these downsides to make sure it’s the right move for you.
SoFi Mortgages
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By Lindsay VanSomeren |
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Comments Off on Why 9 in 10 People Take the Standard Tax Deduction
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Most of us understand the gist of income taxes. In order to fund the government, we pay taxes on our income. The more we make, the more we’re taxed.
What’s not as well understood is the role of tax deductions. Tax deductions lower our taxable income and in turn, our tax bill. In other words, some of our income ends up being off limits to taxes.
But how much is deducted? That’s actually up to us taxpayers to decide — sort of. Here’s how it all works and what could change in 2026.
Tax Deductions 101
It’s safe to say most taxpayers want to get the biggest tax deduction they can. But every year you have to decide: Are you better off with the standard deduction amount?
The answer is often yes. The standard deduction will likely be the higher amount for people who don’t have many tax deductible expenses.
But before we explore the choices, let’s take a step back to review the purpose of deductions. The government uses tax deductions as incentives to save for retirement, buy a house, go to college or invest in the economy in other ways. Deductions are also a form of financial relief for people with certain types of expenses, like high medical costs or alimony payments.
And not everyone thinks they’re a good idea: Some economists say deductions should be eliminated since income tax is such a big source of government revenue.
Tax deductions have been a part of the U.S. tax code since the first income tax was passed to pay for the Civil War. Back then, you could only deduct other tax payments — like state and local taxes — but over time the number of deductible expenses has grown. (The IRS has a list posted here.)
Claiming individual tax deductions involves adding them up, or “itemizing” them, on a separate form (Schedule A) of the 1040 tax return. You must make sure to meet any caps or restrictions for eligibility.
The SALT deduction, as the deduction for state and local taxes is known today, is still one of the most frequently claimed, along with the deductions for mortgage interest and charitable contributions, according to the Peter G. Peterson Foundation, a non-profit think tank focused on fiscal policy.
Itemizing Vs. Taking the Standard Deduction
If itemizing deductions sounds like work, it is. That’s why Congress gave people a shortcut in 1944 by introducing the standard deduction. It allowed everyone — even if they weren’t a tax whiz — to shave a set amount off their taxable income.
The standard deduction is the same for almost everyone within the same tax filing status. For example, for the 2024 tax year, the standard deduction for a single filer is $14,600. So regardless of their situation, a single filer gets to subtract $14,600. (For married couples filing jointly, the 2024 standard deduction is $29,200 and for those filing as head of household, it’s $21,900.)
So which option will reduce your taxable income more? While everyone’s circumstances are different, the standard deduction tends to be more valuable for most people, particularly since Congress nearly doubled the amount in 2018, according to the Peterson Foundation. These days, roughly 9 in 10 taxpayers take it, according to the IRS.
(Note: While you can’t itemize and take the standard deduction amount, it’s not entirely one or the other: There are actually some types of deductions, like student loan interest, that can be claimed on top of the standard deduction. These are sometimes called “above-the-line deductions.”)
The Tax Cuts and Jobs Act
Why did the standard deduction get so much bigger in 2018? The Tax Cuts and Jobs Act, passed in 2017, increased standard deduction amounts as part of a broad tax code overhaul that also limited several itemizable deductions. For single filers, for example, the standard deduction jumped from $6,350 to $12,000 in one year and has edged higher every year since to reflect an increase in the cost of living.
It’s important to note that many of the provisions in the TCJA — including the higher standard deductions — are set to expire at the end of this year, so the dynamic could shift again. Before the law was enacted, roughly 30% of taxpayers chose to itemize, according to the Peterson Foundation.
That said, lawmakers are expected to preserve the majority of TCJA provisions beyond this year now that Republicans are back in control in Washington, Bloomberg Government reported last month. The TCJA was originally passed by a Republican majority in Congress.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
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.
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