Ports across the country are booming as the Biden administration offers up large grants in an effort to upgrade infrastructure.

You may not be super new to investing, but is your portfolio mostly concentrated in one type of investment?

Perhaps it’s stocks, maybe you’ve snuck in some exchange traded funds, or ETFs, which allow you to invest in a basket of things. Whatever your portfolio looks like at the moment, the central question you should ask yourself is this: Is it diversified and balanced?

In the simplest terms, diversifying your portfolio means you don’t put all your eggs in one basket. That way, if there’s market volatility, your hard-earned money may be more protected, or that’s the idea, at least.

Diversifying has the potential to help you reach your financial goals faster. For example, you may allocate a portion of your investment budget to riskier categories, like growth stocks, which are companies that have a lot of growth potential. You then balance out that allocation with traditionally safer, lower-yielding investments like bonds. Again, not all eggs are in one basket, but some of those eggs could produce some juicy returns.

How you allocate your portfolio also has something to do with your phase of life, and what you’re trying to achieve.Younger people’s portfolios may be more geared toward high returns, while people closer to retirement may prefer investments that bring in a lower-risk, regular return.

What Different Asset Classes Can Offer You

The first step to diversifying is to understand all the different types of investments you may have access to. That’s essentially all asset classes are: a group of investment types with certain characteristics.

No doubt you know about stocks, or equities; they’re an asset class. You can invest in single companies, tracker funds that follow certain industries, or even the whole market. Many people who are invested in the markets also own bonds, or fixed income, which traditionally provide a lower-risk, and lower return.

If you feel less comfortable outside of these two, read on.

Money market funds are very liquid investments, which means they can be easily and quickly converted back into cash.

Commodities include oil, gold, agricultural products like dairy, or wheat. Different commodities are correlated with different economic factors. For example, demand for oil is related to global economic growth, as well as supply of the fossil fuel from oil-producing nations. Meanwhile, gold is a traditionally considered a safe haven asset that investors often flock to in times of market turbulence.

In real estate investing, you’re betting on rising property values, or generating income through rents. You can also put money into this category through real estate investment trusts, which are traded on the market. Real estate is traditionally less correlated to the market.

Diversifying your portfolio is important, but it’s okay to feel overwhelmed by just how much is out there. Did you know SoFi offers you access to certified financial planner professionals to plan for your future? Learn more about how to book your first consultation here.

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

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Deciding to spend your life with someone is a big deal, both emotionally and financially. After all, tying the knot means you will likely pool your incomes to create shared finances.

If that’s the case for you, it might be worth thinking about the costs associated with getting married together. Engagement rings can be expensive, for example, so if you’re planning to get hitched, have a conversation about what budget is right for you as a couple.

Once you’re engaged, the real planning begins. Maybe you’re getting help from your families in paying for your wedding. But there are hidden costs that are easily overlooked, such as rehearsal dinners, bachelor or bachelorette parties, and tips for staff at the end of the big day.

So how much does a wedding cost on average? Half of the people asked in a SoFi survey said they spent less than $10,000 on their ceremony and reception. Overspending on the big day was also the number one regret, with 15% of survey respondents wishing they had spent less.

What’s More Romantic Than Budgeting Together?

Coming up with a budget of how much you want to spend in total early in the planning phase can help you start married life off on the right foot.

Budgeting might not sound like the most romantic thing to do, but it actually kind of is: You’re taking each other’s financial needs and wants into account, and that will never stop being important in your life together.

Saving for your big day can be easier if you automate monthly transfers to a separate account to collect wedding funds. And if you pick a high-yield savings account, your money can make money for you while you continue to plan and save.

If you’re thinking about financing your wedding in other ways, be sure to weigh the pros and cons, and thoroughly check out all of your options, which may range from credit cards to personal loans.

Check out SoFi’s high-yield savings account if you’re saving for your wedding, or SoFi’s personal loans if you need a little more help to get there.

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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¹New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus when they set up Direct Deposit of at least $1,000 during the Direct Deposit Bonus Period. Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 01/01/2023 and will be available through 12/31/23. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.

SoFi members with Direct Deposit can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.60% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

If you’re in debt, you’re not alone. The average American has more than $100,000 in debt, according to Experian. But being debt-free is possible, and it’s a freedom like no other. If 2024 is the year you want to Get Your Money Right® by tackling your debt, read on.

Not all debt is created equal. A home loan, for example, has different implications for your financial health than the same amount in credit card debt.

That’s because when you have a mortgage, you also own part of your home. Sure, maybe the bank owns the majority, but your monthly payments decrease your debt and increase your equity in your home.

Meanwhile, a mortgage-sized amount of credit card debt is a different pair of shoes. That’s because credit card debt tends to be higher in interest. Plus, it doesn’t help you build any equity. It just weighs on you.

Start by writing down all your debts, needs and income streams to get going on a budget that can help you knock out your debts one by one.

Finding the help you need to tackle your debts

There are many strategies for tackling your debts. But you’d be best served to find one you can stick with.

The snowball method works by listing out all your debts and starting with the smallest one. It will help you feel like you’re making headway, and might give you the momentum you need to keep going.

The avalanche method is targeting your debts with the highest interest rate first, minimizing how much you pay in interest over the long run.

If you’re in credit card debt, paying more than the monthly minimum payment can also help you chip away at the total amount owed.

But sometimes debt can feel overwhelming, and maybe none of the methods above is feasible for you.

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Depending on your situation, you might consider a debt consolidation loan, which allows you to transfer high-interest credit card balances to a personal loan to reduce your monthly payment. Learn more about the debt consolidation loans SoFi offers.

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.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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, be residing in the U.S., and meet SoFi’s underwriting requirements. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. Additional terms and conditions may apply. Lowest rates reserved for the most creditworthy borrowers. The average of SoFi Personal Loans funded in 2022 was around $30K. Information current as of 12/27/23. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details.

Mortgage Calculator With Interest

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Mortgage Calculator With Interest

If you need to finance the purchase of a home with a mortgage, the sticker price of the home is not what you’ll end up paying. Banks charge interest on the money they lend, so when determining whether you can afford to buy a home, it’s critical to take this factor into account. A mortgage calculator with interest will help you figure out the true cost of a mortgage.

What Is a Mortgage Calculator with Interest?

A mortgage calculator with interest allows you to input the amount you’re borrowing, the term of the loan, and its interest rate. You can then see how much your monthly mortgage loan payment will be, what the total cost of the mortgage will be, and how much of the total cost is interest.

For the math curious out there, here’s a peek at the formula, with p being principal, the initial amount you are borrowing, and i being interest rate per repayment period. N is the number of payments over the life of the loan:

Monthly payment = p [ i (1+i) ^ n ] / [ (1+i) ^ n – 1 ]

While it is certainly possible to compute a mortgage payment by hand, a calculator does the work for you. It also allows you to easily tinker with the variables to see how changes to principal or interest rate, for instance, affect your monthly payment. Using a calculator will help ensure that your results are accurate, giving you a clear sense of what you might pay.

Recommended: 15-Year vs 30-Year Mortgage: Which Should You Choose?

Why Calculate Mortgage Payments with Interest?

By design, a mortgage includes interest payments. When a lender makes a loan, it takes on a certain amount of risk that the borrower may not pay the money back in full. Charging interest is one way lenders are compensated for that risk.

Charging interest is also one of the ways that banks make a profit. And it’s how they can afford to pay interest to customers who hold interest-bearing accounts, such as savings accounts.

Because lenders charge interest, when you borrow to buy a home, you’ll ultimately end up paying more than the sticker price. That’s why it’s critical to include interest in your calculation as you determine how much house you can afford and what monthly payments are possible for you to make.

Pros and Cons of Using a Mortgage Calculator With Interest

As noted above, there are a number of advantages to using a mortgage calculator with interest. The calculator does the math for you, ensuring accurate results. It allows you to easily tinker with the variables, which can help you determine how much you can afford to borrow and how large your monthly payment will be in different scenarios (a 15-year vs. a 30-year mortgage, for example). And it helps you understand the true cost of buying a home.

That said, there can be some limitations in using a mortgage calculator. For example, calculators may assume a fixed interest rate, which can lead to inaccurate results if you’re considering an adjustable-rate mortgage. Mortgage calculators may not capture all of the costs associated with a mortgage, such as private mortgage insurance (PMI), or homebuying closing costs. Not all mortgage calculators show taxes, which some buyers have rolled in to their monthly mortgage payment.

How Does a Down Payment Work?

When you take out a loan to buy a home, your lender will often require that you make a down payment equal to a percentage of the home purchase price. How much is a down payment? Some lenders require a down payment of as much as 20%, and putting that much down can often help a borrower qualify for a mortgage at a better interest rate than they would get with a lower down payment. But ultimately, the size of your down payment will depend on your lender and the type of loan you choose. The bigger your down payment, the smaller the principal amount of your mortgage loan will be.

The down payment serves a couple functions. First, it proves to the seller that a buyer is serious about purchasing the property. It also reduces the amount of money that the borrower needs to borrow, which reduces the lender’s risk.

This idea of risk reduction is key. The less risk a lender takes on, the more leeway it may have to reduce the amount of interest it charges. This, in turn, lowers the cost of the loan and increases the chances a borrower will get a good mortgage rate. As a result, it may be wise to put down as much money as you can afford upfront to save money later. A home loan help center can help you learn more about down payments and other basics of buying a home.

Moreover, did you know mortgage rates vary by state?

Current Mortgage Rates by State

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

How to Lower a Mortgage Down Payment

Putting down a large amount of money upfront may not always be possible. Borrowers have a couple courses of action to help them make lower down payments. Those making a down payment of less than 20% and who are borrowing using a conventional loan are typically required to pay for PMI until they build 20% equity in their home.

Some types of loans, such as Federal Housing Administration loans, may allow borrowers to put as little as 3.5% down, but these loans may require that borrowers pay both an upfront and a monthly mortgage insurance premium (MIP); the monthly MIP is often around .55%. Fortunately, the MIP is reduced as the loan is paid off.

Average Mortgage Down Payment in 2023

Housing prices fell in the first half of 2023 since their peak at the end of 2022, so down payments have fallen year-over year. The average median down payment in the second quarter of 2023 was $34,248, down 3.3% vs. the same time in 2022. Borrowers paid an average of 14.7% down in the third quarter of 2023, and median down payment amounts were about $30,000.

Down payments on second homes and investment properties tend to be higher at roughly 28%, about twice as much as a down payment on a primary residence. Wondering how much home you can afford based on your income, down and other variables? A home affordability calculator will do the math for you.

Recommended: Jumbo Mortgage Loans

Tips on Mortgage Down Payments

As you’re saving for a down payment on a home, consider the following tips.

First, remember that the larger your down payment, the lower your loan principal will be, which reduces the amount you pay in interest over the life of the loan. As a result, consider making as large a down payment as possible, while still reserving funds for closing costs and moving expenses.

Look into first-time homebuyer programs and loans. These may include different types of mortgages that require smaller down payments.

Consider setting aside a dedicated savings account for your down payment so you won’t be tempted to dip into your savings for other purposes. You may even consider automated deposits into the account to help keep you on track to meet your goals.

The Takeaway

As you shop for a new home, a mortgage calculator with interest is an important tool to help you understand what you can afford, both in terms of housing options and monthly mortgage payments. The size of your down payment also plays a critical role. The more you put down, the more you reduce the size of your principal, which in turn reduces the amount you pay in interest over time.

Armed with information about principal size and interest — and with a little help from a mortgage calculator — you can better determine what the true cost of financing a home will be.

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

SoFi Mortgages: simple, smart, and so affordable.

FAQ

How do I calculate how much interest I will pay on my mortgage?

A mortgage calculator with interest will show you how much the total cost of a mortgage will be, and how much of that cost comes from interest. It will also allow you to play with variables to see how changing, say, the term of the loan will impact payments and interest costs.

How much interest do you pay on a $500,000 house over 30 years?

The amount of interest you’ll pay will depend on your interest rate. For example, if you put down a 20% down payment and borrowed $400,000 with a 30-year mortgage at a fixed interest rate of 4.03% will cost you $689,971. In the end, you’ll have paid $289,971 in interest.

How much home can I afford with a $100,000 salary?

There’s a common rule of thumb that you shouldn’t pay more than 28% of your gross income (income before taxes) on housing. Using this rule, with a $100,000 salary, you’d have $28,000 a year to spend on a mortgage. With a 30-year loan at a 4.03% fixed interest rate, you could potentially afford a $500,000 house, provided you also had around $50,000 saved for a down payment. Use a home affordability calculator can help you determine how much house you can afford based on your specific circumstances.

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

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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

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