Current Home Equity Loan Rates in Connecticut Today
CONNECTICUT HOME EQUITY LOAN RATES TODAY
Current home equity loan rates in
Connecticut.
Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Compare home equity loan rates in Connecticut.
Key Points
• Borrowers with higher credit scores and lower debt-to-income ratios can secure better rates on home equity loans.Borrowers with higher credit scores and lower debt-to-income ratios can secure better rates on home equity loans.
• Fixed-rate home equity loans provide predictable monthly payments, while variable-rate loans offer lower initial rates that can fluctuate over time.
• Closing costs for home equity loans typically range from 2% to 5% of the loan amount.
• Interest on home equity loans is tax-deductible if the loan proceeds are used for home purchase, construction, or improvements.
• Alternatives to home equity loans include home equity lines of credit and home equity conversion mortgages, each with its own features and eligibility requirements.
Introduction to Home Equity Loan Rates
Welcome to our guide on home equity loan rates in Connecticut. We’ve done the research and collected the information you need to make an informed decision about home equity loans. By the end of this guide, you’ll understand the different factors that affect home loan rates, how to compare offers from different lenders, and how to find the best rates in Connecticut. We’ll also cover home equity line of credit (HELOC) rates in Connecticut, so you can understand all of your options.
How Do Home Equity Loans Work?
First, let’s clarify what is a home equity loan. It’s an installment loan that uses your home as collateral, which allows for lower interest rates than many other types of loans. The interest rate is typically fixed, so your monthly payments will remain consistent.
To qualify for a home equity loan, you’ll need to have at least 20% equity in your primary residence. To determine your maximum loan amount, your lender will calculate your combined loan-to-value ratio (CLTV), or your mortgage balance plus the amount you want to borrow, divided by the appraised value of your home. Most lenders require your CLTV to be 85% or less for a home equity loan or home equity line of credit (HELOC).
Home equity loans in Connecticut can be used for a variety of purposes, including home renovations, education, medical bills, and debt consolidation. What’s not to love? Here’s the downside: If you encounter financial hardship and can’t repay your loan, your house is on the line.
Where Do Home Equity Loan Interst Rates Originate?
Home equity loan rates in Connecticut are influenced by a variety of economic factors, including the prime rate. The prime rate is the interest rate that banks charge their most creditworthy customers. Federal Reserve policy decisions regarding interest rates can also influence home equity loan rates in Connecticut. Understanding the factors that influence home equity rates can enable borrowers to anticipate rate fluctuations and make informed decisions about when and how to get equity out of your home in Connecticut.
How Interest Rates Impact Home Equity Loan Affordability
The interest rate you secure can have a significant impact on your ability to manage loan repayments over the loan term. For instance, over a typical 20-year mortgage term, a 1% difference in the interest rate will translate into a higher monthly payment. More significantly, this seemingly small difference can result in your paying an additional $11,000 in interest over the duration of the loan. The table below shows how different loan amounts, repayment terms, and interest rates affect the monthly payment on a home equity 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 |
Visit our Home Equity Loan Calculator
Home Equity Loan Rate Trends
Keep an eye on the prime interest rate, as it’s a good barometer for where home equity loan rates in Connecticut may be headed.
Historical Prime Interest Rates
Since 2018, the U.S. prime rate has moved dramatically. It hit a low of 3.25% in 2020 and a high of 8.50% in 2023. This wide range reflects the many economic changes that have occurred over the past five years, and how those changes have affected the decisions of businesses and consumers in Connecticut and nationwide.
| 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
Source: TradingView.com
Factors Influencing Home Equity Loan Rates
National interest rate and market conditions aren’t the only factors that influence home equity loan rates in Connecticut. Some influences are much closer to home. These include your credit score, the loan-to-value (LTV) ratio, the current market value of your home, the stability of your home’s value over time, the location of your home, and the policies of your lender.
Credit Score
Here’s the deal: The better your credit score, the better your chances of snagging a home equity loan with a sweet interest rate. Lenders in Connecticut typically look for a credit score of 680 or higher, but a score of 700 or above could really make you stand out. Plus, a higher credit score might just open the door to more flexible loan terms. (For reference, a conventional mortgage refinance requires a credit score of 630 to 650, with the lowest interest rates going to borrowers with scores of 740 and above.)
Loan-to-Value (LTV) Ratio
The LTV ratio is a key factor in determining your loan terms. It’s calculated by dividing the loan amount by the appraised value of the property. Your combined loan-to-value (CLTV) includes your remaining mortgage principal too. Most lenders will approve a CLTV of up to 85%.
Home Value
Lenders often use independent home appraisals to make sure they’re lending an appropriate amount of money based on the home’s market value. These appraisals are also important for you, the homeowner, because they help you know how much equity you have in your home. The more equity you have, the more you can borrow.
Home Value Stability
The ups and downs of home values directly impact the equity you can tap into. When values rise, lenders are more open to approving larger loans, seeing the reduced risk in the increased property value. But when values dip, lenders might tighten the reins, which could mean stricter criteria and smaller loans.
Property Location
Living in areas with a history of extreme weather or natural disasters, like hurricanes, floods, and wildfires, can mean higher interest rates. Lenders may view these areas as riskier to lend in because they’re more likely to experience property damage and infrastructure disruption. To compensate for this risk, they may charge higher interest rates.
Lender Policies
When searching for a home equity loan in Connecticut, it’s important to consider the policies of the lenders you’re looking at. These policies can have a big impact on the interest rates you’re offered. By comparing interest rates, fees, and closing costs from multiple lenders, you can be sure you’re getting the best home equity loan in Connecticut for your financial goals and situation.
How to Qualify for the Lowest Rates
To qualify for the best home equity loan rates that Connecticut has to offer, you need to have a strong credit score, a good debt-to-income ratio, adequate property insurance, and a good amount of home equity. By working on these things, you will be able to get the best loan terms and enjoy the benefits of homeownership with more financial flexibility and peace of mind.
1. Build a Strong Credit Score
It’s a well-known fact that a higher credit score can open the door to better interest rates on home equity loans in Connecticut and elsewhere. With a strong credit score, you’re seen as a more reliable borrower, and that’s the kind of profile lenders love to see. It could mean thousands of dollars in savings on interest payments over the life of your loan.
2. Manage Debt-to-Income Ratio
Your debt-to-income (DTI) ratio, which compares your monthly income to your monthly debt obligations, is a common yardstick used by lenders. Typically, they look for a DTI ratio between 36% and 50% for home equity loans in Connecticut. This range helps them assess your capability to handle your current debt and take on the added monthly payments of a home equity loan.
3. Obtain Adequate Property Insurance
Having the right property insurance is key to getting a home equity loan in Connecticut. This is especially true if you live in an area that’s at risk for flooding. By having insurance, you’re protecting your property and your finances. This is an important part of being a responsible homeowner and will give you peace of mind and financial security.
4. Maintain Sufficient Home Equity
If you’re in Connecticut and eyeing a home equity loan, it’s wise to keep at least 20% equity in your home. By meeting this equity threshold, you’re better protected against the ebb and flow of the real estate market. Plus, you’ll be less likely to find yourself in a tight spot where your mortgage balance is higher than what your home is worth.
Fixed vs. Variable Interest Rates
When it comes to home equity loans in Connecticut, you’ll find most have fixed interest rates. This means you can plan your budget with confidence, knowing your monthly payments won’t fluctuate. While fixed rates offer stability, they can sometimes start out higher than variable rates. Variable rates may be lower initially, but they have the potential to increase over time.
Tools & Calculators
SoFi’s suite of tools and calculators can help you get a better handle on your home equity loan payments. This can help you feel more confident in your financial decisions and help you make the most of your home equity. Here, in addition to the home equity loan calculator, you’ll find a HELOC repayment calculator and a HELOC interest only calculator.
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.
-
HELOC Payment Calculator
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
-
HELOC Interest Only Calculator
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay .
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
Home equity loan closing costs in Connecticut come to about 2% to 5% of the loan amount. Expect to see charges for an appraisal, credit report, document preparation, and title insurance. Loan origination fees can vary, sometimes as a flat rate. Title insurance typically costs 0.5% to 1% of the loan balance, and appraisals usually run between $300 and $500.
Tax Deductibility of Home Equity Loan Interest
In Connecticut, the interest on a home equity loan is tax-deductible if you use the money for home improvements. The deduction limit is $750,000 for joint filers and $375,000 for single filers. You’ll need to itemize your deductions to claim this benefit. We recommend consulting a tax advisor to make sure you get the maximum tax benefit.
Alternatives to Home Equity Loans
Beyond different types of home equity loans, Connecticut residents have other options to consider, such as home equity lines of credit (HELOCs), home equity conversion mortgages (HECMs), and cash-out refinances. Each of these options has its own unique features and eligibility requirements, so it’s important to carefully consider each one before making a decision.
Home Equity Line of Credit (HELOC)
A HELOC, or home equity line of credit, is a bit like a credit card, because you can borrow up to a certain limit and only pay interest on the amount you’ve actually spent. But there’s a catch: The interest rates on HELOCs are variable, which means they can go up and down with the market. Below you’ll see an at-a-glance comparison chart of HELOCs vs home equity loans.
| 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; 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. |
Recommended: What Is a Home Equity Line of Credit?
Home Equity Conversion Mortgage (HECM)
An HECM is a government-insured reverse mortgage that empowers homeowners aged 62 and older to receive payments from the lender based on their home’s value. The beauty of an HECM is the flexibility it offers: You can opt for a lump sum, regular payments, or a line of credit. Unlike home equity loans and HELOCs, HECMs don’t require repayments. (While SoFi doesn’t offer HECMs, we do offer home equity loans and HELOCs.)
Cash-Out Refinance
A cash-out refinance is a new mortgage that pays off your old one and lets you pocket the difference. Lenders typically allow you to borrow up to 85% of your home’s equity. For details, check out our comparison of Cash-Out Refinances vs Home Equity Lines of Credit
Recommended: HELOC Interest Only Calculator
The Takeaway
Understanding home equity loan rates in Connecticut and the factors that influence them is key to making a smart financial decision. By shopping around, maintaining a good credit score, and considering other financing options, you can find the best loan for your needs and goals.
Unlock your home’s value with a home equity loan from SoFi.
FAQ
What would my monthly payment be on a $50,000 loan?
If you’re thinking about a $50,000 home equity loan Connecticut, you’ll want to consider how the interest rate and loan term will impact your monthly payments. A 10-year loan at 8.50% interest means a monthly payment of $620. At 7.50% interest you’re looking at a payment of $594.
What is the monthly payment on a $100,000 HELOC?
The monthly payment on a $100,000 home equity line of credit Connecticut can vary based on the current interest rate and the amount of credit you have used. if you have borrowed the entire $100,000 credit line and you are in a 10-year repayment period, you can expect to pay $1,240 per month if your annual percentage rate (APR) is 8.50%. To get a better estimate of your monthly payment, use a HELOC calculator to input your loan amount, interest rate, and the length of the loan.
What is the payment on a $25,000 home equity loan?
When you’re pondering a $25,000 home equity loan in Connecticut, make sure to consider how the interest rate and loan term will play into your monthly payments. At 7.50% interest over 10 years, your monthly payment would be approximately $297. For a precise picture of what you might owe, a dependable loan calculator is your best friend.
What would the payment be on a $30,000 home equity loan?
If you’re thinking about a home equity loan of $30,000, it’s important to consider how the interest rate and the loan term will affect your monthly payments. For example, at 7.50% interest over 10 years, your payment would be about $356. To make sure you’re making a smart financial move, use a loan calculator to get a better idea of what your payments will look like and what kind of loan term will work best for your long-term financial goals.
What could disqualify you from getting a home equity loan?
A low credit score, not enough equity in your home, a high debt-to-income ratio, or insufficient insurance coverage could be the culprits. It’s important to be aware of these factors and address them before applying for a loan.
What are the benefits of a HELOC?
HELOCs have a number of advantages. They offer lower interest rates than credit cards and the ability to only pay interest on the amount you’ve borrowed. These benefits make HELOCs an attractive option for many people looking to fund home improvement projects, consolidate debt, or cover unexpected expenses.
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.
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.
This content is provided for informational and educational purposes only and should not be construed as financial advice.
SOHL-Q424-067
More home equity resources.
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What is a Home Equity Line of Credit
-
Different Types of Home Equity Loans
-
HELOC vs Home Equity Loan: How They Compare
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Current Home Equity Loan Rates in Missouri Today
MISSOURI HOME EQUITY LOAN RATES TODAY
Current home equity loan rates in
Missouri.
Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Compare home equity loan rates in Missouri.
Key Points
• Home equity loans use your home as collateral and offer borrowers a lump-sum payment that is repaid in regular installments.
• Home equity loan interest rates vary based on credit score, loan-to-value ratio, home value stability, lender policies, and property location.
• Home equity loans typically have fixed interest rates, providing a consistent and predictable pattern of monthly payments.
• Home equity loans often allow homeowners to access up to 85% of their home equity and are commonly used for home renovations, educational expenses, medical bills, and debt consolidation.
• Home equity loan interest rates are influenced by the prime rate and economic factors such as inflation and the federal funds rate
Introduction to Home Equity Loan Rates
Thinking about getting a home equity loan in Missouri? We’ll walk you through the current Missouri home equity loan rates, what influences them, and how you can snag your lowest possible rate. We’ll also explore alternatives to home equity loans and address some of the most frequently asked questions. The first item of business? Let’s discuss what is a home equity loan in the first place.
How Do Home Equity Loans Work?
A home equity loan is a loan that is secured with your home. Assuming you still have a mortgage on your property, a home equity loan would be a second mortgage. Home equity loans typically offer lower fixed interest rates than unsecured loans. To qualify, you’ll need to have at least 20% equity in your primary residence. You can use the money you borrow for anything you want, from home improvements to paying for college to consolidating debt. If you’re wondering what is a home equity line of credit (and how it’s different from a home equity loan), rest assured we’ll get to that below.
Where Do Home Equity Loan Interst Rates Originate?
Federal Reserve policies on interest rates also play a part in shaping Missouri home equity loan rates. Lenders look to these rates when setting their prime rate, which is what they charge their most creditworthy clients. By understanding these influencing factors, you can better prepare for potential rate changes and make well-informed decisions about home equity loans.
How Interest Rates Impact Home Equity Loan Affordability
Just as the interest rate you get on your home loan when you purchase your property is critically important, the interest rate you lock in on your home equity loan can make a world of difference in your finances long-term. Let’s say you’re borrowing $80,000 with a 20-year term. A mere 1% variance in your home equity loan interest rate, from 7.00% to 8.00%, could mean a higher monthly payment ($620 vs. $669). Over the life of the loan, that small difference could add up to more than $11,000 in extra interest.
Home Equity Loan Rate Trends
The prime interest rate is a key indicator of where home equity loan rates are headed. By keeping an eye on the prime rate, you can get a sense of how the lending market is changing and how it might affect the rate you’re offered on a loan. Check out the ups and downs of the prime rate below.
Historical Prime Interest Rates
| 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
Source: TradingView.com
Factors Influencing Home Equity Loan Rates
Prime rates aren’t the only thing governing the rate you’ll be offered. By familiarizing yourself with the other factors that drive rates, you can better position yourself to make a smart choice. Good news: Unlike the prime rate, many of these things are within your control.
Credit Score
If you’ve been diligent about paying your bills on time and have a credit score of 680 or higher, you’re in a good position to secure a competitive interest rate. Many lenders will look for a credit score of at least 680 when considering Missouri home equity loan applications, and a score of 700 or higher may be required to qualify for the best rates, especially on larger loan amounts.
Home Value
Lenders will put your home through an independent appraisal process to determine its market value, which in turn will help establish how much you can borrow.
Loan-to-Value (LTV) Ratio
The loan-to-value (LTV) ratio is a key number. Most lenders will let you borrow up to 85% of your home’s value, but the exact number can vary. The higher your LTV, the higher your interest rate is likely to be. To compute your combined LTV (CLTV) you’ll need to add the amount you owe on your first mortgage to the amount you’d like to borrow. Then divide that total by the appraised value of your home. If the answer is under .85, you’re within the 85% guideline. Easier still is to use a home equity loan calculator to do the math.
Home Value Stability
When home values have been rising, lenders are often more willing to approve larger loan amounts, as their risk is reduced. On the flip side, a dip in home values in Missouri, or in your specific part of the state, can make lenders more cautious, which could impact your loan options.
Property Location
If your home is in an area that’s at high risk of damage from extreme weather or natural disasters, like tornados, floods, or wildfires, this can affect the terms of your loan.
Lender Policies
When looking for a home equity loan, it’s important to consider that each lender will have its own policies and formula that impact the interest rate you receive. By doing your research and comparing your options, you could end up with a better loan and save money in the long run.
How to Qualify for the Lowest Rates
When you’re looking for the best home equity loan rates in Missouri, make sure you meet these requirements.
Build a Strong Credit Score
It’s wise to take good care of your credit score if you have your eye on the best home equity loan rates in Missouri. Lenders often favor those with higher scores, seeing them as less of a risk. A few pointers: Check your credit report periodically and promptly request corrections on any inaccuracies. Don’t max out every credit line you have in the months leading up to your home equity loan application. And pay your bills on time, of course.
Manage Debt-to-Income Ratio
Your debt-to-income (DTI) ratio is a critical piece of the puzzle when it comes to loan eligibility. It’s a simple calculation: Add up all your monthly debts and divide the total by your gross monthly income. For a home equity loan, lenders often look for a DTI of 36% to 50%, with lower numbers being better. If your monthly debt payments tip over the 50% mark of your income, you might find it challenging to qualify.
Obtain Adequate Property Insurance
It’s a standard requirement for lenders to ask for proof of sufficient property insurance before granting you a home equity loan. This is especially important if you live in an area prone to natural disasters.
Maintain Sufficient Home Equity
In Missouri, as elsewhere, homeowners need a minimum of 20% equity in their primary residence to qualify for a home equity loan. When you’re assessing your equity, remember to use the current appraised value of your home, not the amount you paid for it initially.
Fixed vs. Variable Interest Rates
Home equity loans typically come with fixed interest rates. This means you’ll have the same predictable monthly payment for the life of the loan. While fixed rates offer stability, they can sometimes start out a bit higher than variable rates. Variable rates, on the other hand, can start out lower, but they have the potential to increase over time.
Tools & Calculators
Make the most of our online calculators during your search for a Missouri home equity loan. These tools can help you compute how much you might be able to borrow with your home as collateral, as well as what your monthly payments and total interest paid would be at various rates and terms.
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.
-
HELOC Payment Calculator
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
-
HELOC Interest Only Calculator
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay .
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
You’ll find closing costs for home equity loans typically range from 2% to 5% of the loan amount. Things you might see on your tab include the appraisal, credit report, document preparation, and title search, but every lender is different so it’s important to look not only at what interest rate you’re being offered but also what fees you’ll be asked to absorb.
Tax Deductibility of Home Equity Loan Interest
Here’s a plus: The interest you pay on a home equity loan can be tax deductible, but only if you use the funds to buy, build, or significantly improve a home. Couples filing jointly can currently deduct interest on loans up to $750,000, while single filers can deduct interest on loans up to $375,000. Remember, to claim this deduction, you’ll need to itemize your deductions on your tax return.
Alternatives to Home Equity Loans
In Missouri, you have several ways to get equity out of your home besides a home equity loan. You can consider a home equity line of credit (HELOC), a home equity conversion mortgage (HECM), or a special type of mortgage refinance called a cash-out refinance. Get the lowdown on different types of home equity loans and other options:
Home Equity Line of Credit (HELOC)
A home equity line of credit (HELOC) is a bit like a credit card, in that you have a revolving line of credit up to a lender-approved credit line. You only pay interest on the amount you actually borrow. HELOCs often have a variable interest rate, so your payments could go up or down over time. Here’s a quick guide to HELOCs vs home equity loans
| 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; 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. |
Home Equity Conversion Mortgage (HECM)
Now, let’s talk about HECMs. These are government-backed reverse mortgages that can be a game-changer for those 62 and older. With an HECM, you can receive payments from the lender based on your home’s value. And the best part? You don’t have to make payments until you leave your home. That’s very different from Missouri home equity loans and HELOCs, which require regular payments. (While SoFi does not offer HECMs at this time, we do offer home equity loans and HELOCs.)
Cash-Out Refinance
A cash-out refinance is a new mortgage that you use to pay off the old one plus borrow extra funds. One big difference when you are comparing a cash-out refinance vs. a home equity line of credit is that the refi leaves you with one loan and one payment, while the HELOC is a second payment on top of your initial loan. If you were lucky enough to score a very attractive interest rate on your first mortgage, you’ll want to look closely at how current rates in Missouri compare before committing to a cash-out refi.
The Takeaway
Knowing the ins and outs of current home equity loan rates in Missouri and what factors can impact the rate you’re offered can help homeowners in the Show-Me State make the best financial decisions. By comparing rates from different lenders, tending carefully to your credit score, and considering your financial goals, you can get the best home equity loan or line of credit for your needs.
Unlock your home’s value with a home equity loan from SoFi.
FAQ
What would my monthly payment be on a $50,000 loan?
To better understand the monthly payment on a $50,000 home equity loan, it’s important to consider the interest rate and loan term. For the most accurate estimate based on current rates in Missouri, we recommend using a loan calculator.
What is 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 utilized, as well as on the interest rate you’re paying. If you used the full $100,000 and your interest rate was 8.00%, you’d pay $836 per month to repay the funds over 20 years.
What is the payment on a $25,000 home equity loan?
The payment on a $25,000 home equity loan will be based on your interest rate and loan term. If you repay the loan over 10 years at a rate of 8.00%, your monthly payment would be $303. If you instead had a rate of 6.00%, you would pay $278 per month on a 10-year term.
What would the payment be on a $30,000 home equity loan?
A $30,000 home equity loan with rate of 7.50% and a 20-year term at a would cost you $242 each month. A different loan term or interest rate would change the monthly payment amount as well as the amount of total interest paid over the life of the loan.
What could disqualify you from getting a home equity loan?
A poor credit score, not having at least 20% equity in your home, having a high debt-to-income ratio, and being underinsured can all result in a lender refusing to provide you with a home equity loan. It’s important to carefully consider your financial situation before applying for any financing.
What are the benefits of a HELOC?
The biggest benefit of a HELOC is that you only use and pay interest on the amount of money you actually borrow. Having the credit line available can bring peace of mind. And HELOCs often have lower interest rates than credit cards, although rates can fluctuate, which means monthly payments aren’t predictable.
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.
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.
This content is provided for informational and educational purposes only and should not be construed as financial advice.
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More home equity resources.
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What is a Home Equity Line of Credit
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Different Types of Home Equity Loans
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HELOC vs Home Equity Loan: How They Compare
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Liz Looks at: The Tech Sector
Semi-Soft Market
The beloved technology sector has made more headlines over the past two years than all other sectors combined. Although we typically talk about it as a broad group of stocks, or a more narrow subset such as the Magnificent Seven, one of the emerging stories has been around the industry groups within technology — namely, semiconductors versus software.
Year-to-date, semiconductors are up 75% and have far outpaced software, and this comes after semis returned a whopping 98% in 2023. The group has produced exceptional returns on an absolute basis and relative to history — the average annual return for semiconductors is only 16%.
Software, on the other hand, is up 14% YTD, which is in line with its average annual return of 14%. In 2023, software had a standout year returning 49% and beating its annual average… but semis returned twice as much and stole the spotlight.
We can see this in the chart below, which shows the performance of semiconductors relative to software. Not quite back to the extremes of 2000, but the movement in this chart since early 2023 is remarkable.
Safe to say, semis have been the darling of the tech sector for the better part of two years, but can it stay that way?
Earn and Burn
It’s not lost on me that this column will be published the morning after Nvidia’s third quarter earnings report, and it’s important to note that I wrote this before the report came out. That said, this piece is an analysis that wouldn’t be completely skewed by one company’s quarterly results, so the takeaways don’t change regardless of what happened with Nvidia last night.
For the fundamentalists out there, one of the big reasons semis have done so well is because they’ve produced better earnings results than software. I recognize that a large portion of this has been Nvidia, but nevertheless, earnings per share for the semiconductor group as a whole are above software by the widest margin since this data began in August 2003. If stock prices follow earnings growth, it’s no wonder semis have gone parabolic.
To the question of whether this can continue, earnings growth in 2025 is expected to be 67% for semiconductors and 17% for software. If those results come true, the outperformance can continue… as long as stocks are trading only on the fundamentals. But we know that’s not usually the case in the short-term.
The Source Matters
Earnings growth is a critically important factor to consider when investing, especially over long-term periods. It shows that a company is able to maintain an attractive revenue growth trajectory while managing costs and margins appropriately. It also reflects a company’s ability to grow, improve its competitive positioning, or in the case of semiconductors currently, innovate to create new markets and new levels of future growth.
The bottom line: Don’t fight the trend in earnings growth over long-term periods.
However, in shorter timeframes, markets can move in contradictory ways, particularly when most investors are positioned for a certain result. Earnings growth matters, but so does positioning and so does sentiment. All three can cause a stock price to change direction quickly and considerably.
The last chart I think is very important to keep in mind as we enter a new calendar year is the one below. This is only for the semiconductor group, but it’s a concept that applies across sectors and industries.
I mentioned earlier that semis are up 75% YTD, and we can see here that about ⅔ of that return can be attributed to positive earnings results (blue), while the other ⅓ can be attributed to what’s called “multiple expansion” shown below as the forward price-to-earnings ratio (pink).
Multiple expansion is the less concrete portion of the gains, and can be largely driven by market sentiment, macro factors, news headlines, or other intangible forces. As such, this portion of the return can be more fragile and volatile, as is also apparent in the chart.
The main question we’re trying to answer here is not whether tech in general can continue its gains, but whether semiconductors can continue to outpace software by such a wide margin. After looking at some of the data presented here, there are items in the yes column and items in the no column.
As far as earnings growth expectations are concerned, yes semiconductors still appear to be the superior industry group heading into 2025. But when we look at the price action that has already occurred, the proportion of returns that comes from multiple expansion, and the wide and rare margin between earnings per share of the two groups, it looks more like managing risk in semiconductor stocks is a smart move at this juncture.
Moreover, semiconductors tend to be a more cyclically sensitive group, while software is looked at as a more defensive area of technology. If sentiment for the next 12 months becomes more defensive, or if political forces cause volatility, software has a better chance to pull ahead, in my opinion. In fact, during the most recent bout of market bumpiness since November 8, software has fared better than semis.
Just because a group has done well for a while doesn’t necessarily mean it’s “due” for any kind of pullback. But this is a period where valuations have come under the microscope more, and as investors look at the two years of standout semiconductor returns, it may make sense to rotate into a technology group that may have more room to grow as the AI life cycle plays out. Don’t sleep on software.
Want more insights from Liz? The Important Part: Investing With Liz Thomas, a podcast from SoFi, takes listeners through today’s top-of-mind themes in investing and breaks them down into digestible and actionable pieces.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Liz Young is a Registered Representative of SoFi Securities and Investment Advisor Representative of SoFi Wealth. Her ADV 2B is available at www.sofi.com/legal/adv.
Photo Credit: iStock/adventtr
Read moreIs 616 a Good Credit Score?
Is 616 a Good Credit Score?
A 616 credit score isn’t good or bad, though it is at the lower end of what is considered the “fair” range using the FICO® credit scoring model. That might make it more challenging for a borrower to get approved for a credit card or loan or to qualify for lower rates and fees.
Read on for a look at what you can expect with a 616 credit score.
What Does a 616 Credit Score Mean?
Typically, a credit score must be near or slightly above the average for U.S. consumers to be considered “good.” Using the popular FICO scoring model, that’s anywhere from 670 to 739. A FICO Score in the 580 to 669 range is generally categorized as fair. And a score that’s lower than 580 is “poor.”
Keep in mind, though, that it’s up to each lender to decide how it will assess credit scores, and lenders have multiple scoring models to choose from.
Some lenders may look at a 616 credit score as a bit of a red flag — a sign that you may have had some past credit problems or perhaps lack a credit history. They’ll consider you to be more of a risk than a borrower with a higher credit score.
But that doesn’t mean you won’t stand a chance when you apply for a loan or credit card. If you have other factors working for you — say, a low debt-to-income (DTI) ratio, solid employment and a good income, cash in the bank, or other assets — you still may qualify. Some credit cards and loans are designed to work for borrowers with fair or poor credit. But you may be asked to pay a higher interest rate or to secure the loan with some type of collateral.
What Can You Get with a 616 Credit Score?
You may have a harder time qualifying as a borrower with a credit score that’s on the borderline between fair and poor, but there are options available.
Can I Get a Credit Card with a 616 Credit Score?
With a 616 credit score, you might have a better chance of qualifying for a secured credit card vs. an unsecured credit card. But that isn’t necessarily a bad thing: Using a secured card can be helpful as you work to improve your credit reputation.
A secured card works pretty much like a traditional credit card, except that you’ll have to put down a deposit that “secures” the card. The credit card company will hold onto your money just in case you default on your payments, but you’ll get the deposit back if you close your account or if you transition to an unsecured card later on. Your credit limit with a secured card is usually the same as your deposit.
Whether you qualify for a secured or unsecured card, it’s likely that your interest rate and other costs will be on the high end until you can improve your creditworthiness. So it’s important to compare offers, preferably using a preapproval tool, so you’ll have a good idea as to whether you’ll get the card or not before you actually apply.
Remember to look for cards that come with useful credit-building elements, such as free credit score monitoring and/or an app that makes it easy and convenient to track your spending and saving.
It’s also important to be sure the credit card you choose regularly reports to all three of the major credit bureaus.
Can I Get an Auto Loan with a 616 Credit Score?
The minimum credit score required to get an auto loan can vary. And lenders may use an industry-specific scoring model for auto loans that works a little differently than your basic credit score. But as with most types of borrowing, the higher your score, the more likely you are to receive better financing terms.
Coming up with a higher down payment or getting a cosigner may help you get a loan and/or a better annual percentage rate (APR). Both moves can make you a lower risk for lenders. But with a 616 score, you can expect to get an APR that’s at least a few percentage points higher than car buyers with credit scores in the next highest range.
If you’re wondering if it’s smarter to buy a new or used car, there are pros and cons to both. Though it may seem counterintuitive, it actually may be easier to get financing for a new car, because it can be more difficult for lenders to accurately value a used car. But a used car is likely to have a lower price that’s easier on your budget.
Can I Get a Mortgage with a 616 Credit Score?
Requirements can vary with different types of mortgages, and lenders may have their own credit score requirements as well. Here are some basics to know:
• If you’re applying for a conventional mortgage loan — a loan from a private lender that isn’t insured by a government agency — you typically will need a credit score of at least 620.
• Lenders also like to see a minimum credit score of 620 for a VA loan, which is backed by the U.S. Department of Veterans Affairs. However, some lenders will accept a score as low as 580.
• With a government-insured FHA loan, you’ll need a minimum 580 credit score to qualify for a down payment as low as 3.5%. Applicants with lower scores, down to 500, must put down at least 10%.
• Considering a government-backed USDA loan? A minimum score of 640 is recommended, though borrowers without a credit history may be evaluated through other criteria.
Though a 616 credit score is below the preferred minimum for most of these loan types, you may want to talk to a mortgage professional about whether you could qualify and what option might be right for you. If you have stable employment, a low DTI ratio, and other positive information on your application, you might have a better chance of getting the type of loan you want. But you should be prepared to pay a higher interest rate than you would if you had a better credit score.
Can I Get a Personal Loan with a 616 Credit Score?
There are personal loans that are geared specifically to borrowers with fair or poor credit scores. This means you probably can find a lender who will approve your application with a 616 credit score, especially if the loan is in a lower amount and/or you’re willing to pay a higher interest rate.
One option to consider, if you have an asset that you’re willing and able to put up as collateral, is a secured personal loan. With this type of loan, the lender is taking less risk, which may make qualifying easier. And the interest rate may be lower than with an unsecured personal loan.
The overall cost of borrowing is key when you’re considering a personal loan. Credit cards are convenient and useful for smaller, everyday amounts or purchases that might earn points. But even unsecured personal loans tend to have lower interest rates than credit cards, which can make them a good choice for larger expenses. And knowing you’ll have a fixed payment to make every month can help you stay disciplined and on track.
Wondering how a personal loan might compare to other financing options? A personal loan calculator can help you determine how much your monthly payments might be, and if you could save by using a personal loan to pay off an existing loan or high-interest credit card balance.
You also may find it makes sense to use a credit card consolidation loan to simplify your finances and help you save money.
The Takeaway
A 616 credit score may not be considered “good,” but it is a good start if you’re trying to build or rebuild your credit reputation.
You may find that you’ll have to pay a higher interest rate when you borrow than you would if you had a higher score. But if you consistently pay bills on time — and use the tools available to help you keep improving your credit score — you can likely expect to qualify for better financing options down the road.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
FAQ
Is 616 a bad credit score?
A 616 credit score is neither good nor bad. It’s considered on the lower end of “fair,” according to the FICO scoring model. And it’s lower than the average U.S. credit score of 717.
Can I buy a house with a 616 credit score?
Generally speaking, you need a credit score of at least 620 to qualify for a mortgage loan. However, some lenders may offer loans to borrowers with a score as low as 500. A mortgage professional can help you determine the option that best fits your situation.
What can I get with a 616 credit score?
A 616 credit score is considered fair. You might qualify for secured credit cards, personal loans, or even a mortgage, though you’ll likely need to pay higher interest rates and fees.
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.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Is 696 a Good Credit Score?
Is 696 a Good Credit Score?
Here’s some good news: If you have a 696 credit score, you’re sitting firmly in what is considered the “good” range using both FICO® and VantageScore credit scoring models. And that could make it easier for you to qualify for a credit card or loan.
But because 696 is still a bit lower than the average U.S. credit score in 2024 (for FICO that’s 717, and for VantageScore it’s 701), even if you’re approved, you may not be offered a lender’s lowest interest rates and fees.
If you’ve been working to build or rebuild your credit, and you’re curious about where you stand as a potential borrower, read on for a look at what you can expect with a 696 credit score.
What Does a 696 Credit Score Mean?
A credit score typically must be near or slightly above the average for U.S. consumers to be considered “good.” Using the popular FICO scoring model, that’s anywhere from 670 to 739. Although a 696 score will likely be solid enough to get you a loan or credit card when you apply, there’s still a way to go before moving into the “very good” range (740 to 799) or the “exceptional” range (800-plus).
You may have to bump up your score a little more to find a really competitive offer. Borrowers who appear to be the lowest risk can anticipate receiving better terms and other perks.
What Can You Get with a 696 Credit Score?
It’s important to note that lenders have multiple FICO scoring models to choose from, including some that are industry-specific (for auto loans, mortgages, etc.). And it’s up to individual lenders to decide how they will assess credit scores.
Lenders also generally look at more than credit scores when making their decisions. If you have other factors working for you (a low debt-to-income (DTI) ratio, solid employment and a good income, cash in the bank or other assets), they’ll usually take that into consideration.
With that in mind, here’s what you may be able to get with a 696 credit score.
Can I Get a Credit Card with a 696 Credit Score?
A 696 credit should be good enough for you to be approved for an unsecured credit card. But you may not qualify for a luxury or premium card, the lowest annual percentage rate (APR) offered, the highest credit limit, or certain rewards or privileges.
To find the card that’s best for your current circumstances, it can be helpful to use a preapproval tool to compare various offers. That way, you can get a good idea as to whether you’ll be approved for the card you want before you actually apply.
While you’re comparison shopping, you also may want to look for cards that come with free credit score monitoring and/or an app that makes it easy and convenient to track your spending and saving. These extras can come in especially handy if you’re hoping to keep improving your credit.
Can I Get an Auto Loan with a 696 Credit Score?
The minimum credit score needed to get a car loan varies. And lenders may use an industry-specific scoring model that works a little differently than your basic credit score. But as with most types of borrowing, the higher your score, the more likely you are to receive better financing terms.
With a 696 credit score, you can expect to get an average APR that’s at least one or two percentage points higher than what car buyers with credit scores in the next highest range are paying.
By the way, if you’re wondering if it makes more sense to buy a new or used car, there are pros and cons to both. It may seem counterintuitive, but it actually can be easier to get financing for a new car. A used car is likely to have a lower price, though, which can be easier on your budget.
Can I Get a Mortgage with a 696 Credit Score?
Loan requirements, including minimum credit scores, can vary with different types of mortgages. And lenders may have their own credit score requirements as well. Here are some basics to consider:
• If you’re applying for a conventional mortgage loan, you typically will need a credit score of at least 620. With a 696 credit score, you’re likely to be approved, but lenders probably won’t be offering you the best interest rates available.
• Although the Department of Veterans Affairs doesn’t set a minimum credit score requirement for VA loan borrowers, lenders typically like to see at least a 620. And you may get a lower interest rate with your 696 credit score.
• Considering a government-insured FHA loan? Borrowers with a credit score as low as 500 can qualify. If your credit score is between 500 and 579, your minimum down payment is 10%. If your credit score is 580 or higher, you must put down a minimum of 3.5%.
• A minimum score of 640 is recommended for a government-backed USDA loan, although borrowers without a credit history may be evaluated through other criteria.
Though a 696 credit score should be high enough to qualify for any of these loan types, you may want to talk to a mortgage professional about how various costs might affect your monthly payments and which option might be right for you.
Can I Get a Personal Loan with a 696 Credit Score?
Unless lenders see some potential red flags on your application, you should be able to qualify for unsecured personal loans with a 696 credit score.
Your interest rate probably won’t be as low as what borrowers in the very good and exceptional ranges are offered. And you may have to settle for a lower loan amount. Still, personal loans tend to have lower interest rates than credit cards, which can make them a good choice for larger expenses. And you may find it makes sense to use a credit card consolidation loan to simplify your finances. Knowing you’ll have one fixed payment to make every month can help you stay disciplined and on track with your budget.
A personal loan calculator can help you determine how much your monthly payments might be if you choose to use a personal loan to pay for a large medical bill, a wedding, home improvements, or something else that’s important to you. You also can calculate how much you could save by using a personal loan to pay off any existing high-interest debt that’s getting in the way of your goals.
The Takeaway
A 696 credit score is generally considered to be in the “good” range, and it’s a great start if you’re trying to improve your credit reputation. Most lenders are likely to treat you as a creditworthy candidate when you apply for financing.
That said, you still may end up paying a higher interest rate than you would if you had a credit score in the “very good” or “exceptional” range. But if you keep paying your bills on time, and use the tools that can help you keep increasing your credit score, you can expect to qualify for even better financing terms in the future.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
FAQ
What is a good FICO Score?
FICO scores run the gamut from 300 to 850, which is considered a perfect score. A score between 670 and 739 is considered “good.”
What credit score do I need for a $250,000 house?
In order to qualify for a conventional loan for a $250,000 house, you’ll likely need to have at least a 620 credit score.
What can I get with a 696 credit score?
A 696 credit score is considered good. With it, you likely can get approved for a variety of credit products, such as an unsecured credit card, personal loan, or mortgage. However, you may be charged higher interest rates and fees.
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.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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