What are common uses for a home equity loan?

Some popular reasons why people pursue home equity loans are to pay for home improvements and to consolidate their high-interest debt. If you decide to apply for a home equity loan, remember to think about whether the loan fits into your bigger financial picture and use the funds wisely.

What would the monthly payments look like on a $50,000 loan?

For a $50,000 home equity loan, the amount of your monthly payment can vary depending on the interest rate and the loan term. For example, if you got a 7.00% interest rate on the loan and a term of 15 years, your monthly payment would be about $449. At a 9.00% interest rate over 15 years, the payment would be around $507. A loan calculator can help you quickly figure out what your monthly payments would be with a variety of variables.

What might prevent you from getting a home equity loan?

A number of factors could get in the way of your securing a home equity loan. First, lenders typically require a minimum credit score, generally around 680, and having a lower one may disqualify you. A high debt-to-income (DTI) ratio – usually above 50% – might also keep you from getting your loan. Having less than 20% equity in your home could be a red flag for lenders, too. Potential lenders will look at how stable your home’s value is and how comprehensive your property insurance is. Qualifications vary from lender to lender, but these are common disqualifiers.

What are the biggest benefits of a home equity loan?

Home equity loans often come with fixed interest rates, so they have predictable monthly payments, making budgeting easier. They also usually have lower rates than unsecured personal loans, making them a cost-effective option for significant one-time expenses like home improvements or debt consolidation. Just be sure to balance the benefits with the potential risks, including home foreclosure if you fall behind on your payments.ome equity loans often come with fixed interest rates, so they have predictable monthly payments, making budgeting easier. They also usually have lower rates than unsecured personal loans, making them a cost-effective option for significant one-time expenses like home improvements or debt consolidation. Just be sure to balance the benefits with the potential risks, including home foreclosure if you fall behind on your payments.

Interest Rate	Monthly Payment	Total Interest Paid
8.00%	$627	$75,559
7.50%	$604	$70,007
7.00%	$581	$64,554

Service	Typical Fees
Appraisal	$300-$500
Credit report	$30-$50 or more
Document preparation	$100-$500 (may be billed on an hourly basis if attorney involvement is required, or built into the loan origination fee)
Loan origination	0.5%-1.0% of the loan amount
Notary	$20-$100
Title insurance	0.5%-1.0% of the loan amount
Title search	$75-$250 or more

	Home Equity Loan	HELOC	Cash-Out Refinance
Borrowing Limit	Up to 85% of borrower’s equity	Up to 90% of borrower’s equity	80% of borrower’s equity for most loans
Interest Rate	Fixed	Generally variable	May be fixed or variable
Type of Credit	Installment loan: Borrowers get a specific amount of money all at once that they then immediately begin repaying, with interest, in regular installments.	Revolving credit: Borrowers receive a line of credit. They have a draw period (5-10 years) during which they borrow and can only pay interest (a HELOC interest-only calculator is useful then). Then there is a repayment period (10-20 years) to repay the principal plus interest.	Installment loan: Borrowers receive a lump sum payment from the excess funds of their new mortgage, which has a new rate and repayment terms.
Repayment Term	Generally 5-30 years	A draw period of 5-10 years, followed by a repayment period of 10-20 years	Generally 15-30 years
Fees	Closing costs (typically 2-5% of the loan amount)	Closing costs (typically 2%-5% of the loan amount), plus other possible costs, depending on the lender (annual fees, transaction fees, inactivity fees, early termination fees)	Closing costs (typically 2-5% of the loan amount)

Jul

2025

Current Home Equity Loan Rates in Los Angeles, CA Today

By Dana Paltao | mortgage | Comments Off

LOS ANGELES HOME EQUITY LOAN RATES TODAY

Current home equity loan

rates in Los Angeles, CA.

Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.

View your rate

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare home equity loan rates in Los Angeles.

Key Points

• Home equity loan rates in Los Angeles are influenced by the borrower’s credit score and debt-to-income ratio, as well as by larger economic factors.

• Interest rates can vary significantly from lender to lender, so it’s important to shop around and compare offers.

• The interest on a home equity loan might be tax-deductible if you use it for home improvements.

• Home equity loans typically come with fixed interest rates, making your monthly payment easier to budget for.

• Borrowers will need at least 20% equity in their home to qualify for a home equity loan.

• Property insurance is a must-have for most home equity loans, particularly in high-risk areas.

Introduction to Home Equity Loan Rates

Home equity loans are a powerful financial resource for homeowners who want to get equity out of your home. This guide will provide an overview of home equity loan interest rates in Los Angeles, California, and explain how these rates are affected by economic and personal factors. We’ll also get into the mechanics of home equity loans, the risks and benefits, and offer practical advice on how to secure the best rates. Whether you’re planning a home renovation, consolidating debt, or funding a large purchase, understanding home equity loan rates can help you make the most of your home’s value.

To begin, let’s talk about what is a home equity loan.

How Home Equity Loans Work?

A home equity loan is a second mortgage that uses your home as collateral. You’ll repay this loan in equal monthly installments over a period of five to 30 years. Because it’s backed by your home’s equity, these loans often come with lower interest rates than unsecured personal loans. And the interest rate is usually fixed, which means your payments are predictable.

Many people are passingly familiar with home equity loans and home equity lines of credit, but often confuse the two. This HELOC vs home equity loan chart can help you distinguish them.

	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

Where Do Home Equity Loan Interest Rates Originate?

The interest rates on different types of home equity loans are influenced by a variety of economic and personal factors. Changes in the federal funds rate (set by the Fed) and prime rate influence home loan rates. If one or both of those benchmark rates rise, home equity rates are likely to follow.

Another piece of the puzzle is the borrower’s financial profile. Your credit score and debt-to-income ratio play a significant role in the rates you are offered, with stronger numbers leading to lower interest rates. We’ll get into more detail about that below.

How Interest Rates Impact Home Equity Loan Affordability

Your interest rate largely determines the affordability of your home equity loan. Even a fraction of a percentage point can lead to significant savings or added costs over time. For instance, a $100,000 home equity loan at 8.50% interest repaid over 15 years would mean a monthly payment of $985 and a total interest of $77,253. Bump that rate to 9.50%, and you’re paying $1,044 each month, with total interest of $87,960. That’s a $10,700 difference in interest over the loan’s lifetime.

Now you see why homeowners get so worked up about interest rates. Understanding interest rates empowers you to make savvier financial decisions.

Home Equity Loan Rate Trends

Over the long term, the rise and fall of interest rates looks like a rollercoaster — albeit a slow-moving one. For example, in 2020, the prime rate hit a low of 3.25%, only to steadily climb back up to 8.50% by 2023. These incremental shifts mirror the broader economy and the Federal Reserve’s financial strategies.

While we can’t predict the future, being aware of these patterns can help you time your home equity loan application to coincide with more favorable economic conditions and potentially nab a better rate. That said, if you need the money now and can’t wait around for lower rates, that’s okay. There are other ways to ensure you get the best deal available.

Source: TradingView.com

Date	Prime Rate
9/19/2024	8.00%
7/27/2023	8.50%
5/4/2023	8.25%
3/23/2023	8.00%
2/2/2023	7.75%
12/15/2022	7.50%
11/3/2022	7.00%
9/22/2022	6.25%
7/28/2022	5.50%
6/16/2022	4.75%
5/5/2022	4.00%
3/17/2022	3.50%
3/16/2020	3.25%
3/4/2020	4.25%
10/31/2019	4.75%
9/19/2019	5.00%
8/1/2019	5.25%
12/20/2018	5.50%
9/27/2018	5.25%

Source: St. Louis Fed

How to Qualify for the Lowest Rates

As we noted above, you can’t always wait around for interest rates to drop. Fortunately, there are other strategies to minimize your cost. To qualify for the best available home equity loan rates, a solid financial profile is important. Lenders look at a variety of factors, including your credit score, debt-to-income ratio, and combined loan-to-value ratio. By improving these metrics, you can increase your chances of getting the best home equity loan rates.

Maintain Sufficient Home Equity

To be eligible for a home equity loan, you must maintain at least 20% equity in your home. Calculating your equity is straightforward: Simply subtract your mortgage balance from your home’s current value. For instance, if your mortgage balance is $600,000 and your home is valued at $950,000, your equity would be $350,000, or 37%. Your equity helps determine the maximum loan amount you can secure. Most lenders will approve home equity loans up to 85% of your available equity. By ensuring you have ample equity, you position yourself to access the funds you need while maintaining good financial standing. To calculate your home equity stake, try our home equity loan calculator.

Build a Strong Credit Score

To get the best home equity loan rates, you’ll want to have a solid credit score. Lenders are often looking for 700+. A higher score is like a gold star on your financial report card. It shows you’re responsible with your money, and that can translate to more attractive loan terms. To boost your score, focus on making bill payments on time, keeping your credit card balances in check, and steering clear of new debt. And don’t forget to give your credit report a once-over for any errors; disputing them can give your score a nudge in the right direction.

Manage Debt-to-Income Ratio

Your debt-to-income (DTI) ratio is a critical number when it comes to qualifying for a home equity loan. This ratio measures your gross monthly income against your monthly debt payments. Most lenders want to see it below 50%, with 36% or less being ideal. The lower your DTI, the better your chances of securing a loan with favorable terms, such as a lower interest rate and a higher borrowing limit. To improve your DTI, focus on paying down your existing debts, increasing your income, or a combination of both.

Obtain Adequate Property Insurance

Property insurance is a must-have for most home equity loans, especially if you’re in an area prone to certain natural disasters, like flooding. Insurance coverage protects both you and the lender by covering any potential damage to your home. Depending on where you are, your lender might ask for extra coverage, like flood or earthquake insurance. Making sure you have the right coverage can help you meet your lender’s needs and keep your investment safe.

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:

Tools & Calculators

When you’re pondering a home equity loan, our tools and calculators can help you sort out different offers. Here are three of our favorites.

Run the numbers on your home equity loan.

Home Equity Loan Calculator

Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.

Calculate
HELOC Payment Calculator

Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.

Calculate
HELOC Interest Only Calculator

Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay .

Calculate

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

Just like when you took out your original mortgage, home equity loans have closing costs, which range from 2% to 5% of the loan amount. They cover a number of essential services, from appraisals to title searches and insurance.

Appraisals generally run between $300 and $500, and credit reports can cost $50 to $100. Origination fees, if applicable, are usually 0.5% to 1% of the loan amount or a flat fee. Title insurance typically falls in the range of 0.5% to 1% of the loan balance, with title searches costing around $100 to $250. Make sure to compare closing costs along with home equity loan interest rates, and budget for these upfront fees.

Tax Deductibility of Home Equity Loan Interest

The interest on home equity loans may be tax-deductible if the funds are used to improve your home. If you’re married and filing jointly, you can deduct the interest on home equity loans up to $750,000. Single filers can deduct interest on loans up to $375,000. To claim this deduction, you’ll need to itemize your deductions when you file your tax return. It’s always a good idea to consult with a tax advisor to get the most accurate information based on your financial situation.

Alternatives to Home Equity Loans

While home equity loans are a popular choice, there are other options to consider. A home equity line of credit (HELOC) and a cash-out refinance (a type of mortgage refinance) are two such alternatives. Both options have their merits and should be weighed against your financial aspirations and current situation.

Home Equity Line of Credit (HELOC)

A HELOC is a bit like a credit card secured by your home equity. This means you can borrow up to a certain limit and only pay interest on the amount you use. HELOCs often come with variable rates, so they can rise and fall with the market. To qualify, you’ll generally need a credit score of 680 or higher (700 is even better) and a debt-to-income ratio below 50% (aim for 36% or less).

There are two phases to a HELOC: the draw period and the repayment period. During the draw period, which is typically 10 years, you usually can make interest-only payments on the amount you’re using. (A HELOC interest-only calculator can be a useful tool to estimate bills.) Then in the repayment period, borrowing ends and you repay the full amount with interest over 10 or 20 years. (There’s a HELOC repayment calculator for that).

Recommended: What Is a Home Equity Line of Credit?

Cash-Out Refinance

A cash-out refinance is another way to tap your home’s equity by replacing your current mortgage with a new one, this time for a larger amount, and receiving the difference in cash. You can typically borrow up to 80% of your home’s value, although some lenders go higher. In general, you’ll need a credit score of 620 or higher and a debt-to-income ratio of 43% or lower to qualify for a cash-out refi. You can choose between a fixed or variable interest rate, but a variable rate may allow you to access more equity.

The Takeaway

If you’re considering a home equity loan in Los Angeles, it’s important to know what factors influence home equity loan rates. A strong credit score, a low debt-to-income ratio, and adequate property insurance are all important to securing favorable terms. The tax deductibility of home equity loan interest can provide additional savings, but be sure to consult a tax advisor for up-to-date advice. Exploring alternatives like HELOCs and cash-out refinances can offer more flexibility and potentially better terms, depending on your financial goals and situation.

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.

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FAQ

What can you do with a home equity loan?

Home equity loans are a fantastic option for big-ticket items, home makeovers, or consolidating high-interest debt. Their adaptability and relatively low interest rates makes them a powerful financial resource. Just remember to handle the funds wisely and ensure the payments fit your budget.

Wondering what your monthly payment might be on a $50,000 loan?

The monthly payment for a $50,000 home equity loan varies with the interest rate and term. For instance, at a 7.50% interest rate over 15 years, you’re looking at around $464 a month. If the rate is 8.50%, the monthly payment rises to $492 monthly. You can lower your monthly payments by extending your repayment term — in this case, a 20-year term at 8.50% would give you a monthly bill of $434. But remember, you’ll end up paying more in interest over the life of the loan.

What’s the monthly payment on a $100,000 HELOC?

The initial monthly payment on a $100,000 HELOC varies based on the interest rate. During the draw period, typically 10 years, you pay only the interest on the amount borrowed. For instance, at a 9.00% interest rate, the interest-only payment would be about $750. Once the draw period ends, you enter the repayment period, usually 20 years, where you repay both principal and interest. At the same 9.00% rate, the monthly payment would increase to around $1,650. Just remember that HELOCs typically come with adjustable rates, so your monthly payment can rise and fall with benchmark rates.

What might prevent you from securing a home equity loan?

There are a few key reasons why you might be turned down for a home equity loan. Lenders generally look for a credit score of at least 680. Your debt-to-income (DTI) ratio should be below 50%, and you’ll need to have a minimum of 20% equity in your home. Inadequate property insurance, particularly in high-risk areas, could also be a disqualifying factor.

What are the advantages of a home equity loan?

Home equity loans offer the advantage of fixed interest rates and the potential to borrow larger sums. The stability of a fixed interest rate can simplify your financial planning, and the funds can be used for a variety of purposes, from home improvements to education or debt consolidation. Plus, the interest on these loans can be tax-deductible if used for home improvements. Understanding these perks can help you make the most of your home equity to reach your financial aspirations.

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

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

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

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.

SOHL-Q225-279

Browse other California home guides.

Browse home equity loan rates by state guides.

More home equity resources.

What is a Home Equity Line of Credit

Learn more
Different Types of Home Equity Loans

Learn more
HELOC vs Home Equity Loan: How They Compare

Learn more

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Jul

2025

A Primer for Parents on the Trump Accounts: Yay or Nay?

By Dawn Papandrea | | Comments Off

By now, you’ve probably heard about the Trump Accounts. And the headline-maker seems to be the $1,000 in seed money available to all babies born between 2025 and 2028.

But how will these new investment vehicles actually work? And how should they fit into your kid’s financial future, if at all?

Here’s what we know: Trump Accounts are a new type of tax-deferred investment account for kids. They’re part of the newly approved budget bill (aka One Big Beautiful Bill,) and the idea is to kick-start each kid’s financial security as soon as they leave the womb.

While newborns are the only ones eligible for the one-time $1,000 from the government, anyone under 18 with a Social Security number can have a Trump Account.

Parents, relatives, and even employers will be able to contribute up to $5,000 combined per year, with employer contributions capped at $2,500. Earnings will grow tax-free until they’re withdrawn, and there will be incentives for the accountholder to use the money for retirement, college tuition or buying a house for the first time.

Many of the details and logistics are still unclear (the accounts reportedly won’t be available until next July) but in the meantime, here are some of the pluses and minuses — and how they compare to other options you have for saving and investing, including IRAs, 529 college savings plans, and custodial brokerage accounts.

Yay: You get $1,000. If you’ve got a qualifying newborn, the free money is what makes the Trump Accounts different from any other investment account.

Nay: Earnings get taxed upon withdrawal. While the money in a Trump Account can grow tax-deferred, your child will have to pay taxes on any earnings when they withdraw the money.

It would be taxed at a potentially lower rate (the rate for long-term capital gains rather than ordinary income) if they use it for a qualified expense such as college tuition, business loans or a first-time home purchase, but with a 529 plan, your child wouldn’t pay any federal taxes (and generally no state taxes) on earnings as long as the money is used for education.

In fact, among the current slate of tax-advantaged investment accounts available to Americans, the Trump Accounts are pretty restrictive, according to the Tax Foundation. Here’s a side-by-side comparison.

Yay: Employers can kick in. Employers will be allowed to contribute cash for your kid, and it won’t count as part of your income. If this catches on as a trendy retention tool, with companies like Dell already pledging their support, parent-employees might be motivated to open Trump Accounts for their kids just to get the free company cash.

Nay: Parents don’t get tax breaks for contributing. You may be wondering what’s in it for you if you contribute to your kids’ Trump Accounts. Unlike with many retirement accounts, parents won’t get a tax deduction on their contributions. FYI: 529 plan contributions aren’t deductible on your federal income tax either, but can sometimes be claimed at the state-level.

Yay: Families could catch the investment bug. A $1,000 headstart could motivate families who aren’t already investors to become investors. And that could help grow generational wealth.

Nay: Investment choices are more limited. With Trump Accounts, you can only invest in U.S.-based mutual funds and ETFs. Custodial brokerage accounts, on the other hand, offer more investment choices (for example, bonds and individual stocks.) And although there aren’t any tax benefits with custodial accounts, they don’t face the same early-withdrawal penalties or restrictions that Trump Accounts will.

So what? For newborns, a Trump Account is a no-brainer. Just the initial $1,000 could theoretically turn into enough for a down payment on a house by the time your child is 40, depending on how the investments do. (If that initial $1,000 earned 7% a year, they’d have nearly $15,000 after 40 years.)

Otherwise, though, take some time to investigate Trump Accounts further as more details are announced. Capitalizing on more than one investment vehicle for your kids is great if you can swing it. But if you have limited dollars to invest, you may want to put this one lower on your priority list.

Luxury Homes for Sale in Nob Hill [Neighborhood] – Test Page

By Albert Fang | mortgage | Comments Off

LUXURY HOMES FOR SALE IN NOB HILL

Find luxury homes

for sale in Nob Hill.

Your dream luxury home in Nob Hill is out there—are you ready? Get preapproved with SoFi and gain a competitive edge with a Verified Preapproval Letter.¹ Plus, you could enjoy a cash back reward of $350 to $9,500² when you close on your home purchase or sale with SoFi.

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View luxury homes

NEW! Getting preapproved is now a soft inquiry, meaning it won’t affect your credit score.^†

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Process to search luxury homes
in Nob Hill.

Tell us what you’re looking for.

Start by answering a few quick online questions to help us understand your needs. You can apply online or schedule a complimentary mortgage consultation by calling (888) 541-0398.

Partner with a Mortgage Loan Officer.

Team up with a SoFi Mortgage Loan Officer (MLO) who can help you find the mortgage that fits your needs and guide you through the home-buying process.

Submit your online application.

With the help of your MLO, you’ll submit your mortgage application and receive a Verified Preapproval Letter, giving you a competitive edge as you start your luxury home search.

Connect with a real estate agent.

After approval, we’ll match you with a qualified HomeStory real estate agent who specializes in luxury homes in Nob Hill. As a bonus, you could earn from $350 to $9,500 in cash back rewards after closing.²

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Ready to find the perfect luxury home? Start your search right here with the latest listings of luxury homes in Nob Hill.

Credit Score

What’s your score? Your credit
score
can impact your refinance rate, monthly
payments, closing costs, and
mortgage refinancing options.

Home Equity

Has the value of your home
changed?
Getting an
appraisal and assessing the
equity of your home is an
important step
in your
home refinance.

Economic Factors

Your mortgage refinance rate
is also
influenced by
macroeconomic factors
like
inflation and
unemployment rates.
These economic conditions can drive
interest rate trends and affect
borrowing costs.

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Home Affordability Calculator‘,
title: ‘Set a budget’
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Understand how credit works before buying‘,
title: ‘Review your credit score’
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text: ‘Learn about the different mortgage loans available to you and find the best fit.
Types of mortgage loans‘,
title: ‘Know your loan options’
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text: ‘Figure out how much money you need to put down to qualify for a mortgage loan.
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title: ‘Determine your down payment’
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Why DTI matters‘,
title: ‘Improve your DTI’
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Required mortgage loan documents‘,
title: ‘Prepare your paper trail’
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Seamless online experience

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NEW! Getting preapproved is now a soft inquiry, meaning it won’t affect your credit score.^†

Preapproval vs. prequalification.

Prequalification gives you a rough estimate of your borrowing power based on self-reported information. Preapproval takes it further by verifying your finances and credit, giving you a Verified Preapproval Letter that demonstrates your credibility to sellers. For a detailed comparison, refer to the chart below.

Preapproval vs prequalification

View your rate

NEW! Getting preapproved is now a soft inquiry, meaning it won’t affect your credit score.^†

Benefits of a SoFi Home Mortgage Loan:

View your rate

NEW! Getting preapproved is now a soft inquiry, meaning it won’t affect your credit score.^†

A SoFi Verified Preapproval Letter.

SoFi’s Verified Preapproval Letter is fully underwritten, meaning we’ve already reviewed and verified your financial info. This gives you more credibility with sellers and agents, helping your offer stand out.

SoFi’s On-Time Close Guarantee offer.⁴

We back our promise with a credit of up to $10,000 if your loan doesn’t close by the contract’s closing date due to a delay caused by SoFi.

Streamlined experience.

Our home-buying experience, from prequalification to closing, is designed to be efficient. This helps you move quicker through the process, when time matters most.

Earn cash back.

When you use a qualified HomeStory real estate agent and close your home with SoFi, you could earn cash back, ranging from $350 to $9,500.²

View your rate

NEW! Getting preapproved is now a soft inquiry, meaning it won’t affect your credit score.^†

How to get preapproved for a mortgage with SoFi:

Tell us a little about yourself.

In our easy online application, we’ll ask for some info about your income, employment, assets (like investment and bank accounts) and debts.
Get verified.

You’ll need to submit financial documents, which may include recent pay stubs, W-2s, tax returns, and bank statements, so we can verify your information.
Complete application review and credit check.

An underwriter will review your submitted information and documents with a soft credit inquiry for prequalification, which won’t affect your credit score.^†
Receive your Verified Preapproval Letter.

If you’re approved, you’ll get a Verified Preapproval Letter that confirms your loan amount. This may give you an advantage when making an offer on a home.

View your rate

NEW! Getting preapproved is now a soft inquiry, meaning it won’t affect your credit score.^†

Current mortgage rates by state.

Mortgage rates vary by state due to various factors like competition among lenders, average loan size, and state laws.

Select a state to compare current mortgage interest rates:

Learn more about getting preapproved for a mortgage.

FAQs

Will getting preapproved impact my credit score?

No, a mortgage preapproval with SoFi requires only a soft inquiry.

How long is my preapproval valid for?

Your SoFi Verified Preapproval Letter is valid for 90 days.

What documents do I need for preapproval?

You’ll typically be asked for two years of residency history, two years of employment history, and income and credit documents (paystubs, W-2s, property documentation, etc.)

What is the minimum credit score for a SoFi mortgage?

To be preapproved for a SoFi home mortgage, you’re required to have a minimum credit score of 600. Unsure of your credit score? Check it now.

How far in advance should I get preapproved for a mortgage?

The ideal time to get preapproved for a home loan is right before you begin your home search. This lets you know exactly how much you can afford and demonstrates to a seller you can be approved for a mortgage.

What is the due diligence process like when buying a luxury home?

Due diligence involves thorough inspections (general home, pest, chimney, roof, etc.), reviewing all disclosure documents (seller disclosures, natural hazard reports, HOA documents), and researching the neighborhood and property history. This is vital to identify any potential issues before finalizing the purchase.

How does the HomeStory Rewards program with SoFi work?

HomeStory Rewards connects SoFi customers with experienced, local real estate agents in the HomeStory network. Customers who use a HomeStory agent to buy and/or sell a home are eligible for a post-closing reward of $350 – $9,500, paid by HomeStory, on each transaction (purchase of a home and/or the sale of a home). HomeStory, a real estate brokerage, manages the national network of real estate agents.

What happens after a SoFi mortgage preapproval?

Once you have a SoFi mortgage preapproval letter, you’re ready to start home shopping! With your letter in hand, you can begin looking at luxury properties in your preapproved price range. Even better, when you close on your home with SoFi, you’ll receive between $350 to $9,500 cash back as a reward for your purchase or sale.

Does preapproval guarantee a mortgage?

No. However, it does indicate a lender reviewed your financial information and determined you’ll likely be approved for a mortgage loan for a specific amount.

Is it better to be prequalified or preapproved?

Because preapproval requires a deeper dive into your financials, a preapproval is generally better when you’re shopping for a new home. However, prequalification is a great starting point if you’re just starting to consider buying a new home.

Can I use my SoFi Verified Preapproval for a different property?

Yes, you can use your preapproval for various properties. A preapproval isn’t limited to a single property.

How do I contact a SoFi mortgage specialist?

To speak with a SoFi mortgage loan officer, call 833-408-7634.

What are typical closing costs when buying a luxury home?

Closing costs typically range from 2-5% of the loan amount (not the purchase price) and include various fees such as lender fees, title insurance, escrow fees, appraisal fees, and recording fees. Buyers also often prepay property taxes and insurance.

How important is it to have a local real estate agent in Nob Hill?

It’s crucial. A local real estate agent provides invaluable insights into specific neighborhoods, market nuances, pricing strategies, and navigating competitive offers. They can also connect you with trusted local lenders, inspectors, and other professionals.

How long does it take for HomeStory cash back rewards to redeem?

HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply.

See more FAQs

Terms and conditions apply. Before you apply for a SoFi Mortgage, 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 loan amount. Minimum loan amount is $75,000. 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 12/15/25.

SoFi Mortgages originated through SoFi Bank, N.A., NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org). Equal Housing Lender. SoFi Bank, N.A. is currently able to issue and refinance mortgages in all states except purchase only for New York.

¹Verified Preapproval Letter: Terms apply. See conditional preapproval letter for details. Not a final loan approval and not a commitment to lend. HL25-2712400-C

²$350 to $9,500 cash back: HomeStory Rewards is offered by HomeStory Real Estate Services, a licensed real estate broker. HomeStory Real Estate Services is not affiliated with SoFi Bank, N.A. (SoFi). SoFi is not responsible for the program provided by HomeStory Real Estate Services. Obtaining a mortgage from SoFi is optional and not required to participate in the program offered by HomeStory Real Estate Services. The borrower may arrange for financing with any lender. Rebate amount based on home sale price, see table for details.

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

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

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

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

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

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

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

³Faster close than industry average: SoFi’s average time to close is 36 days for a purchase transaction loan and 40 days for a refinance transaction loan – On average over 5 days faster than the industry average (based on competitive market data provided by EllieMae for the period of 1/01/24 – 10/15/24)

⁴SoFi On-Time Close Guarantee: If all conditions of the Guarantee are met, and your loan does not close on or before the closing date on your purchase contract accepted by SoFi, and the delay is due to SoFi, SoFi will give you a credit toward closing costs or additional expenses caused by the delay in closing of up to $10,000.* The following terms and conditions apply. This Guarantee is available only for loan applications submitted after 04/01/2024. Please discuss terms of this Guarantee with your loan officer. The mortgage must be a purchase transaction that is approved and funded by SoFi. This Guarantee does not apply to loans to purchase bank-owned properties or short-sale transactions. To qualify for the Guarantee, you must: (1) Sign up for access to SoFi’s online portal and upload all requested documents, (2) Submit documents requested by SoFi within 5 business days of the initial request and all additional doc requests within 2 business days (3) Submit an executed purchase contract on an eligible property with the closing date at least 25 calendar days from the receipt of executed Intent to Proceed and receipt of credit card deposit for an appraisal (30 days for VA loans; 40 days for Jumbo loans), (4) Lock your loan rate and satisfy all loan requirements and conditions at least 5 business days prior to your closing date as confirmed with your loan officer, and (5) Pay for and schedule an appraisal within 48 hours of the appraiser first contacting you by phone or email. This Guarantee will not be paid if any delays to closing are attributable to: a) the borrower(s), a third party, the seller or any other factors outside of SoFi control; b) if the information provided by the borrower(s) on the loan application could not be verified or was inaccurate or insufficient; c) attempting to fulfill federal/state regulatory requirements and/or agency guidelines; d) or the closing date is missed due to acts of God outside the control of SoFi. SoFi may change or terminate this offer at any time without notice to you. *To redeem the Guarantee if conditions met, see documentation provided by loan officer.

Screen images simulated. For illustrative purposes only.

Jul

2025

Renters Insurance Guide

By Erik Nilson | Uncategorized | Comments Off

Renters Insurance Guide

Renters Insurance Resources:
A Comprehensive Guide to Renters Insurance

Understanding your renters insurance needs can be challenging. This resource hub brings together helpful articles on topics like coverage types, common insurance terms, and costs. Whether you’re looking for ways to lower your premium or just want to learn the basics, these resources can help.

Terms to know:

Premium

The regular payment (monthly or yearly) you make to keep your insurance policy active.

Deductible

The amount you must pay out-of-pocket on a claim before your insurance company pays the rest.

Personal Property Coverage

Covers the cost to repair or replace your belongings if they are damaged or stolen by a covered event.

Liability Coverage

Protects you financially if you’re found responsible for injuring someone or damaging their property.

Loss of Use Coverage (ALE)

A specific cause of damage that your policy covers, such as fire or theft.

Peril

This is the official, legal document that includes the terms of the policy owner’s insurance. The policy will name the insured, the policy owner, the death benefit, and the beneficiary.

Endorsement (or Rider)

An optional add-on that provides extra coverage to your policy, often for high-value items like jewelry.

Renters Insurance Basics

Renters insurance can be confusing, but understanding the basics can help. These articles cover key topics like choosing a renters insurance deductible, why landlords require it, and how it works to give you a solid foundation.