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By Rebecca Moretti |
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Comments Off on 5 Ways the Newly Passed Budget Bill Could Affect You
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After a month of Congressional back-and-forth and a dizzying number of incremental updates in the news, you probably just want to know what made it into the final version of the “One Big Beautiful Bill” — and why it matters for you.
In short, the sweeping tax and spending package could have a significant impact on household finances. Let’s dive into five ways it could affect your wallet:
1) Cemented tax cuts: The legislation extends many of the temporary tax cuts and standard deduction changes that were passed in 2017, including reduced individual income tax rates that would have expired at the end of this year. According to the nonpartisan Tax Foundation, the legislation prevents tax increases on an estimated 62% of taxpayers. The child tax credit — which was set to return to $1,000 from $2,000 per child next year — has been permanently hiked to $2,200.
2) Temporary tax break on qualifying tips and overtime: While there are several caveats, up to $25,000 of tips and $12,500 in OT pay (the portion earned in excess of the regular rate) per year will be tax deductible from 2025 to 2028. Both breaks are phased out for workers who earn over $150,000 in adjusted gross income, and the income would still be subject to Social Security and Medicare taxes.
Not everyone will be allowed to deduct tips — just people in roles that customarily receive tips — though the list of permissible occupations is expected to include most service workers, like waiters. That said, anyone who doesn’t earn enough to pay federal taxes in the first place (think college students working part-time) won’t benefit. In 2022, for example, 37% of tipped workers didn’t incur any federal income taxes, according to the Budget Lab at Yale.
3) Scaled-back student loan program: The legislation reduces payment plan options on federal student loans and imposes new borrowing limits for graduate students and parent borrowers.
Notably, it eliminates the Grad PLUS Program beginning in July 2026, meaning graduate students can no longer rely on federal loans to cover the full cost of a graduate program: Instead, they can borrow up to $20,500 per year (and $100,000 in total) unless they’re pursuing a professional degree in something like law or medicine. Then the cap is $50,000 per year (and $200,000 in total.)
It also phases out several income-driven payment plans, including the newest SAVE plan, in favor of a new option called the Repayment Assistance Plan. To see how monthly payments could change, here’s a new calculator from The College Investor.
4) Cuts to social services: The legislation cuts federal spending on programs like Medicaid and SNAP, which provide health coverage and food assistance to lower-income Americans. Over the next 10 years, new work-related requirements could reduce the number of SNAP recipients by 3.2 million and leave 7.8 million more people without health insurance, according to previous Congressional Budget Office estimates. The changes in the bill — also intended to reduce fraud and abuse — shift more of the funding burden onto the states, though it remains to be seen how individual states will respond.
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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• Home equity loans allow homeowners in Stockton to tap into their property’s value to borrow money.
• Rates are influenced by the prime rate, your credit score, and your debt-to-income (DTI) ratio.
• To qualify, you’ll need a minimum of 20% equity in your property.
• The fixed interest rates of home equity loans offer a consistent monthly payment experience.
• If you’re using the loan for significant home improvements, the interest may be tax-deductible.
Introduction to Home Equity Loan Rates
Home equity loan rates are a key consideration when you’re thinking about how to get equity out of your home. We’ll help you understand what they are, how they can affect your finances, and how to find the best rate and loan type for your personal situation as a homeowner in Stockton, California.
First step? Make sure you understand what a home equity loan is and how it’s different from other methods of borrowing against your equity. By the time you’re through, you’ll be supremely prepared to determine if a home equity loan is the right financial move for you.First step? Make sure you understand what a home equity loan is and how it’s different from other methods of borrowing against your equity. By the time you’re through, you’ll be supremely prepared to determine if a home equity loan is the right financial move for you.
How Home Equity Loans Work?
A home equity loan is a second mortgage — assuming you’re still paying off your first home loan. It uses your home as collateral for a lump-sum loan, which you begin to repay soon after you receive the funds. You’ll repay the loan in equal monthly installments over a term that typically ranges from five to 30 years. Because the loan is secured by your home, you can expect a lower interest rate than you would get with an unsecured loan.
To qualify, you generally need at least 20% equity in your home. A home equity loan calculator can help you determine how much you might be able to borrow based on your equity.
Interest rates on different types of home equity loans are influenced by a variety of factors, both economic and personal. Federal Reserve policy has a big impact on the lending market because lenders typically base their rates on the prime rate, which follows the Fed. Your credit score and debt-to-income (DTI) ratio are also key factors. The amount of the loan and the repayment term will affect the rate. Lender competition and business models also play a role in the rates they offer.
How Interest Rates Impact Home Equity Loan Affordability
It’s worth having some background in how interest rates are decided, because your interest rate will play a starring role in the affordability of your home equity loan. Even a fraction of a percentage point can lead to a significant difference in the amount you’ll pay in interest over the life of the loan. Consider this chart, which shows how loan amount, loan term, and interest rate weave together to dictate monthly payments. Of note: While longer loan terms usually mean lower monthly payments, they result in more interest paid over the life of the loan.
Loan Amount
Loan Term
Interest Rate
Monthly Payment
$100,000
20 years
8.00%
$836
7.00%
$775
10 years
8.00%
$1,213
7.00%
$1,161
$50,000
20 years
8.00%
$418
7.00%
$388
10 years
8.00%
$607
7.00%
$581
$25,000
20 years
8.00%
$209
7.00%
$194
10 years
8.00%
$303
7.00%
$290
Home Equity Loan Rate Trends
When you begin to think about borrowing money, you might find yourself more interested in the prime rate than ever before. Predicting interest rate movements is not an exact science, especially for amateurs. But having a sense of the history of the prime rate, as shown in this graphic and chart, can be helpful as it will educate you on what might be a “good” rate. Some borrowers will try to wait for a dip in rates, but it’s not always doable. When you need funds to renovate, pay for education expenses or consolidate debt, you can’t always wait for a super-low number.
To qualify for the best home equity loan rates in Stockton, there are a few things you should look into before filing your first loan application. By paying attention to these factors, you can improve your chances of getting a home equity loan with a lower interest rate.
Maintain Sufficient Home Equity
To qualify for a home equity loan, you need to have at least 20% equity in your home. Calculating your equity is straightforward: Just subtract your mortgage balance from your home’s current value. For instance, if your mortgage balance is $400,000 and your home is estimated to be worth $550,000, your equity is $150,000. Divide that equity number by the estimated value to arrive at a percentage of equity. Most lenders allow you to borrow up to 85% of your $150,000 in equity, which in this case would be $127,500.
Build a Strong Credit Score
To ensure you are offered the most attractive home equity loan rates, aim for a credit score of 700 or higher. Some lenders are okay with 680, but in general, the higher the score, the more it speaks to your financial finesse. Want to give your score some love? Focus on paying your bills on time, whittling down credit card balances, and resisting new debt. Oh, and don’t forget to give your credit report a once-over for any errors that need disputing.
Manage Debt-to-Income Ratio
Your DTI ratio is a key piece of the puzzle when it comes to qualifying for a home equity loan. Lenders typically look for a DTI ratio that’s below 50%, but ideally, they’d like to see it under 36%. This ratio is calculated by dividing your total monthly debt payments by your gross monthly income. A lower DTI ratio suggests you’re better equipped to handle more debt, which could translate to more attractive home equity loan rates. To boost your DTI, think about chipping away at your existing debts, finding ways to increase your income, or doing both.
Obtain Adequate Property Insurance
Property insurance is a must for most home equity loans, as it is for mortgages generally. It protects both you and the lender by covering potential damage to the property. Make sure you have enough coverage for the standard risks such as fire or theft, as well as any specific hazards in your area.
Current home equity loan rates by state.
Compare current home equity loan interest rates by state and find a home equity loan rate that suits your financial goals.
Select a state to view current rates:
Useful Tools & Calculators
Online tools and calculators can help you understand your loan rates and terms, and plan for the future. These are a few of our favorites.
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.
Closing Costs and Fees
Closing costs for home equity loans typically range from 2% to 5% of the loan amount. These fees can include an appraisal, credit report, and title insurance. Some lenders waive these fees, though you’ll want to get quotes from different lenders and look carefully at whether the lack of fees is reflected in a higher interest rate.
Here’s a tip: The interest on home equity loans could be tax-deductible if the funds are used to purchase, build, or make significant improvements to your home. This tax break is currently set to last through 2025, and interest on home loans may continue to be deductible in 2026, depending on how tax policy is set. (A tax advisor can provide personalized advice. You may need professional help to claim this deduction, as you’ll have to itemize your deductions on your tax return.) For single filers, interest is deductible on the first $375,000 of loan debt. Spouses filing together can deduct the interest on up to $750,000 of debt.
Alternatives to Home Equity Loans
While home equity loans are a popular choice, there are other two options to consider: a home equity line of credit (HELOC) and a cash-out refinance. HELOCs offer more flexibility by allowing you to draw funds as needed up to a set limit. A cash-out refinance replaces your existing mortgage with a new one. Let’s take a closer look:
Home Equity Line of Credit (HELOC)
A home equity loan gives you a lump sum in one payment. A HELOC, on the other hand, is more like a credit card. It gives you a credit limit, and you can borrow as much as you need (up to that limit) whenever you need it. You only pay interest on the amount you actually borrow, and during the loan’s initial draw period (often 10 years), you usually don’t have to repay the principal. (A HELOC interest-only calculator can help you see what you might owe depending on how much of the credit line you use.) After the draw period, a repayment period begins. You’ll repay what you owe plus interest. (This is when a HELOC repayment calculator is useful.)
HELOCs usually have variable interest rates. To qualify, you’ll typically need a credit score of 680 or higher (700 is better) and a DTI of 50% or less (36% is the ideal). HELOCs are a good choice if you’re not sure how much you’ll need to borrow. Many lenders let you borrow up to 90% of your home’s equity.
Here’s a quick look at how the two compare:
HELOC
Home Equity Loan
Type
Revolving line of credit
Installment loan
Interest Rate
Usually variable-rate
Usually fixed-rate
Repayment
Repay only what you borrow plus interest; you may have the option to make interest-only payments during the draw period.
Starts immediately at a set monthly payment
Disbursement
Charge only the amount you need
Lump sum
Cash-Out Refinance
A cash-out mortgage refinance gives you a new, larger mortgage and a lump sum of cash based on your home equity. You’ll need at least a 620 credit score and a maximum 43% debt-to-income ratio for this option. Your loan will either be a fixed or adjustable-rate mortgage. An adjustable rate might give you a lower rate and more cash, but your rate could go up later.
As you think about a cash-out refinance vs. a home equity line of credit or a home equity loan, there are some considerations. A refi means a brand-new loan. You’ll want to make sure you aren’t sacrificing a sweet interest rate when you give up your old loan. Compare all the costs. For some people, having one payment with a refinance instead of two (an original mortgage plus a home equity loan) is a benefit. Others are fine managing two payments.
The Takeaway
As you consider a home equity loan in Stockton, take a moment to assess your financial landscape. Make sure you have at least 20% equity and have cultivated a robust credit score. Do what you can to minimize your DTI ratio. These are key stepping stones to securing your most favorable home equity loan rate. Consider loan options from multiple lenders and remember to look at closing costs and fees as well as interest rates.
SoFi now offers home equity loans. Access up to 85%, or $350,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.
Unlock your home’s value with a home equity loan from SoFi.
Home equity loans are a versatile financial tool. The money you borrow with a home equity loan can be used for home improvements, educational expenses, medical bills, or debt consolidation. These loans provide a lump sum of money with fixed-rate interest, which can make budgeting for repayment easier. In some cases, the interest on a home equity loan may be tax deductible if the funds are used for home improvements.
What’s the monthly payment on a $100,000 HELOC?
The monthly payment on a $100,000 HELOC will depend on how much of your credit line you’ve used. During the draw period, which is often a decade, you’re only paying interest on the amount you’ve borrowed. For example, if you take out the full $100,000 at an interest rate of 5.50%, your monthly interest payment would be around $458. Once the draw period ends, you enter the repayment period, which is usually 20 years, and you’ll be paying back both the principal and interest. At that point, if the interest rate is still 5.50%, the monthly payment would be $688.
What would a $25,000 home equity loan payment be?
The monthly payment on a $25,000 home equity loan varies with the rate and term. For instance, at an 8.00% interest rate over a 15-year term, the monthly payment would be about $239. Extending the term to 20 years would lower the payment to $209. This makes it more affordable, but keep in mind that it would also increase the total interest paid over the life of the loan.
What might prevent you from securing a home equity loan?
There are a few things that could keep you from securing a home equity loan. Lenders generally look for a minimum credit score of 680 and a debt-to-income (DTI) ratio under 50%. Falling short on either of these could mean you don’t qualify for the most competitive home equity loan rates, or don’t qualify at all. You’ll also need to have at least 20% equity in your home. And if you live in an area that’s prone to natural disasters, having insufficient property insurance could be a dealbreaker.
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SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
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.
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.
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 .
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
By Eujin Rhee |
Uncategorized |
Comments Off on Sunrise Banks Privacy Notice Safe Harbor Format Template United Rewards Program
Facts
WHAT DOES SUNRISE BANKS, N.A. DO WITH YOUR PERSONAL INFORMATION?
Why?
Financial Companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share and protect your personal information. Please read this notice carefully to understand what we do.
What
The types of personal information that we collect and share depend on the product or service you have with us. This can include:
Social Security Number and Date of Birth
Address of Residence and Government Issued Identification
Transaction History
When you are no longer our customer, we continue to share your information as described in this notice.
How?
All Financial Companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons Financial Companies can share their customers’ personal information; the reasons Sunrise Banks, N.A. chooses to share; and whether you can limit the sharing.
Reasons we can share your personal information
Does Sunrise Banks, N.A. Share?
Can you limit this sharing?
For our everyday business purposes –
such as: to process your transaction, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus.
Yes
No
For our marketing purposes –
to offer our products and services to you.
Yes
No
For joint marketing with other financial companies.
Yes
No
For our affiliates’ everyday business purposes – information about your transactions and experiences.
Yes
No
For our affiliates’ everyday business purposes- information about your creditworthiness.
No
We don’t share
For our affiliates to market to you.
No
We don’t share
For non affiliates to market to you.
No
We don’t share
Questions
Call 1-800-507-0476
Who We Are
Who is providing this notice?
Sunrise Banks, N.A.
What we do
How does Sunrise Banks, N.A. protect my personal information?
To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards, secured files and buildings.
How does Sunrise Banks, N.A. collect my personal information?
We collect personal information, for example, when you
Open a Card Account or use your card
Pay your bills or make a purchase
Give us your contact information
We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?
Federal law gives you the right to limit only:
Sharing for affiliates everyday business purposes- information about your creditworthiness,
Affiliates from using your information to market to you,
Sharing for non affiliates to market to you.
State laws and individual companies may give you additional rights to limit sharing.
