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SoFi members have earned $1B in interest on savings, paid down $33B in credit card debt, borrowed $117B to fund their ambitions through September 30, 2024
SoFi Technologies, Inc. (NASDAQ: SOFI), a member-centric, one-stop shop for digital financial services that helps members borrow, save, spend, invest and protect their money, announced today that it now serves more than 10 million members across its suite of products and services. In 2024 to-date, total members increased by nearly 2.5 million. The company’s member base has grown more than 9x in less than five years.
SoFi’s 10 million members have made meaningful strides on their path to financial independence. Through September 30, 2024 they have collectively earned 12.5 billion rewards points, paid down $33 billion in credit card debt, borrowed $117 billion to fund their ambitions – including $44billion in refinanced student loans and $9 billion in funded home loans – and earned more than $1 billion in interest on savings.
“Hitting the 10 million member mark is more than just a number,” said Anthony Noto, CEO of SoFi. “This milestone represents the tangible ways we’ve helped our members get their money right on their path to financial independence – whether that’s paying down debt, buying their first home, or making investments for the future. As for SoFi, this is only the beginning – we’re looking forward to building on our track record of product innovation to serve even more people in the years ahead. The best is yet to come.”
SoFi’s product innovation continues to offer members a comprehensive suite of products and services, while also paving the way for future growth. In 2024, members have taken advantage of new products that help them get their money right, like the SoFi robo-advisorplatform, expanded access to alternative assets, early access to in-demand IPOs, uniqueinvestment opportunities(including interval funds, private credit, private real estate and private venture), expanded money movement options for members who bank with SoFi Money, and new SoFi Credit Card offerings to meet their spending and borrowing needs1.
Today’s milestone underscores SoFi’s role in shaping the future of financial services through member-centric innovation. With 10 million members and counting, SoFi remains committed to delivering the resources, rewards, and community its members need to succeed.
About SoFi
SoFi (NASDAQ: SOFI) is a member-centric, one-stop shop for digital financial services on a mission to help people achieve financial independence to realize their ambitions. The company’s full suite of financial products and services helps its 10 million SoFi members borrow, save, spend, invest, and protect their money better by giving them fast access to the tools they need to get their money right, all in one app. SoFi also equips members with the resources they need to get ahead – like credentialed financial planners, exclusive experiences and events, and a thriving community – on their path to financial independence.
SoFi innovates across three business segments: Lending, Financial Services – which includes SoFi Checking and Savings, SoFi Invest, SoFi Credit Card, SoFi Protect, and SoFi Insights – and Technology Platform, which offers the only end-to-end vertically integrated financial technology stack. SoFi Bank, N.A., an affiliate of SoFi, is a nationally chartered bank, regulated by the OCC and FDIC and SoFi is a bank holding company regulated by the Federal Reserve. The company is also the naming rights partner of SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles Rams. For more information, visit SoFi.com or download our iOS and Android apps.
Forward-Looking Statements Involving Known and Unknown Risks and Uncertainties
This includes forward-looking statements, including statements regarding expectations with respect to future growth, product innovation and SoFi’s ability to continue to grow its members and services. Forward-looking statements represent SoFi’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements, and there can be no assurance that future developments affecting SoFi will be those that it has anticipated. Among those risks and uncertainties are market conditions and competition, including market interest rates, SoFi’s ability to satisfy evolving member and technology platform client preferences or to keep pace with market trends, and risks relating to SoFi’s business, including those described in periodic reports that SoFi files from time to time with the Securities and Exchange Commission (the “SEC”). For additional information on these and other factors that could affect SoFi’s actual results, see the risk factors set forth in SoFi’s filings with the SEC, including the most recent Quarterly Report on Form 10-Q filed with the SEC on November 7, 2024. The forward-looking statements included here speak only as of the date of this release, and SoFi does not undertake to update the statements included in this release for subsequent developments, except as may be required by law.
DISCLOSURES
10 million members: as of December 12, 2024. All other product statistics are since inception and calculated as of September 30, 2024.
Interest earned is from SoFi Checking and Savings and SoFi Money® accounts from June 19, 2018 through September 30, 2024.
$117 billion borrowed toward ambitions reflects the sum of all student loans, personal loans, and mortgage loans processed by SoFi.
SoFi Checking and Savings and SoFi Credit Cards are products offered by SoFi Bank, N.A. Member FDIC. Loans are originated by SoFi Bank, N.A., NMLS #696891 (www.nmlsconsumeraccess.org). Equal Housing Lender. SoFi Money® is a cash management account, which is a brokerage product, Brokerage products are offered through SoFi Securities LLC, member FINRA/SIPC. Advisory services are offered through SoFi Wealth LLC, an SEC-registered investment adviser.
Information as of December 2024 and is subject to change. MB24-2164679
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
1Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. These risks include those associated with commodities, real estate, leverage, selling securities short, the use of derivatives, potential adverse market forces, regulatory changes, and potential illiquidity. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. This information should not be construed as a recommendation to buy, sell, or hold any security, nor is a recommendation or endorsement of any investment strategy.
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• Home equity lines of credit (HELOCs) can be used for home improvements, debt consolidation, education expenses, and more.
• When comparing Colorado HELOC lenders, consider interest rates, fees, limits, terms, and lender reputation.
• HELOC rates in Colorado are influenced by the prime interest rate and other economic factors.
• Several factors, such as sufficient home equity, a favorable credit score, steady income, and a lower combined loan-to-value (CLTV) ratio, significantly impact current HELOC rates in Colorado.
• To qualify for the most favorable Colorado HELOC rates, it’s recommended that you prioritize building your credit score, consistently maintain a steady source of income, and ensure that you have a low loan-to-value ratio.
Introduction to HELOC Rates
If you’re curious about HELOC interest rates in Colorado, this guide can help you understand the current landscape and how to secure the best available deal. We’ll discuss what is a home equity line of credit (HELOC), where interest rates come from, and the factors influencing these rates. We’ll also cover the application process and alternatives for leveraging your home equity. By the end, you should have a solid understanding of HELOC rates in Colorado and how to navigate the market effectively.
What Is a HELOC?
A HELOC is a revolving credit line, similar to a credit card, that leverages the equity you’ve built up in your primary residence. A HELOC has two phases: the draw period and the repayment period.
The Draw Period
During the draw period of a HELOC, typically lasting 10 years, you can access funds up to your credit limit. Interest payments are usually required during this period, but principal payments may be optional. If you choose, you can make payments to reduce your balance and borrow again.
The Repayment Period
The repayment period of a HELOC, usually 10 to 20 years, follows the draw period. During this phase, borrowing ends, and you pay back the principal with interest. You only pay interest on the amount borrowed, not the entire credit limit. However, variable interest rates can fluctuate, making repayment unpredictable.
HELOC interest rates are tied to the prime rate, which is the benchmark interest rate banks charge their most creditworthy customers. Federal Reserve policy decisions also influence HELOC rates. Understanding these factors can help borrowers anticipate rate fluctuations and make informed decisions about the best time for a HELOC.
How Interest Rates Impact HELOC Affordability
Interest rates have a significant impact on the affordability of a HELOC. The difference in total interest you’ll pay on a $100,000 HELOC at 6.00% and 7.00% is about $14,000 over a 20-year term. This is why Colorado borrowers place so much importance on securing the most favorable rate possible.
HELOC Interest Rate Trends
Fluctuations in the prime rate provide insight into the potential trajectory of Colorado HELOC rates. Staying informed about the current HELOC rates empowers you to make well-timed decisions regarding borrowing against your home’s equity.
Historical Prime Interest Rate
Since 2018, the prime rate has fluctuated considerably, ranging from a low of 3.25% in 2020 to a high of 8.50% in 2023. By examining historical trends, we can gain valuable insights into potential future HELOC rates.
Date
U.S. 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
5.5%
9/27/2018
5.25%
Source: U.S. Federal Reserve
Historical U.S. Prime Rates
Factors Influencing HELOC Rates
Besides the prime rate, other factors impact HELOC rates in Colorado: your home equity position, credit score, income, and combined loan-to-value (CLTV) ratio. Becoming savvy about these influences can prove invaluable in securing the most competitive rate for your HELOC.
Home Equity
Having a significant amount of equity in your home can make you appear less risky to lenders, potentially resulting in more favorable interest rates. Typically, homeowners need at least 20% equity in their property to qualify for a HELOC. Building equity can substantially enhance your borrowing power and financial flexibility.
Credit Score
Maintaining a credit score of 680 or higher is important for securing more favorable interest rates on HELOCs, and some lenders prefer a credit score of 700 or above. A higher credit score serves as a strong indicator of reduced risk, enhancing your likelihood of qualifying for competitive rates and terms.
Stable Income
Lenders evaluate your income to determine your capacity to repay the HELOC loans. A steady income serves as an indicator of a reduced likelihood of default, which can potentially result in more favorable HELOC rates. Presenting evidence of continuous employment and consistent earnings can significantly enhance the strength of your application.
Loan-to-Value Ratio
Most lenders require your combined loan-to-value ratio (mortgage and loan balance / appraised home value) to be 85% or less, although some will allow you to borrow 100% of your home’s value. The ratio is a key metric in determining your credit limit. If your home value is $500,000, your mortgage balance is $300,000, and your home equity line of credit balance is $100,000, then your LTV ratio is 80%: $300,000 + $100,000 / $500,000.
Variable vs Fixed Interest Rates
HELOC loans are characterized by variable interest rates that are subject to change over the course of the loan period. Initially, these variable rates are lower compared to standard fixed rates, but they can be adjusted upward or downward with prevailing market conditions. Understanding this distinction can empower you to make an informed decision regarding your choice of a HELOC vs. home equity loan.
Tools & Calculators
These tools are designed to assist you in estimating your payments and interest costs. By leveraging these calculators, you can gain a clearer understanding of your financial situation. Plug your numbers into the HELOC repayment calculator and HELOC interest only calculator to try out different borrowing scenarios.
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.
How to Qualify for a Competitive HELOC Rate
To qualify for the most favorable Colorado HELOC rates, it’s recommended that you consider building your credit score, put off any job changes, and run the numbers on your loan-to-value ratio. Additionally, take the time to compare offers from multiple lenders. All this can help you secure a competitive rate for your HELOC.
Build Your Credit Score
Consistently making payments on time and paying down credit card balances can significantly boost your credit score. Regularly reviewing your credit report and addressing any errors can also help. Monitor your credit utilization ratio, and keep it below 30% to further enhance your credit score.
Assess Your Home Equity
The first step in a HELOC application is to assess your home equity. Regular mortgage payments help in building home equity over time. Home equity can be enhanced through renovations that boost the property’s value. Increased home equity can lead to better terms and higher amounts when applying for a HELOC.
Calculate Your Debt-to-Income Ratio (DTI)
Your debt-to-income (DTI) ratio, calculated by dividing your monthly debt payments by your gross monthly income, is an important metric for HELOC lenders. They typically prefer a DTI below 36%, but some will accept up to 50%. Maintaining a low DTI can significantly enhance your chances of qualifying for a HELOC.
Application Process for a HELOC in Colorado
The HELOC loan application is pretty straightforward. A clear understanding of each step can greatly enhance the efficiency of the process.
Step 1. Run the Numbers
Check your credit scores, calculate your DTI, and get a good estimate of your home equity before you apply for a HELOC. Some lenders offer online prequalification tools to streamline this process.
Step 2. Compare Lenders
See what offers you might qualify for when it comes to interest rates, but also compare their qualification requirements, loan minimums and maximums, fees, the length of the draw and repayment periods they’re offering, and other factors.
Step 3: Gather Your Documents
Have on hand your proof of income, a detailed employment history, credit reports, and documentation of your home’s value.
Step 4: Submit Your Application
Submitting your HELOC application typically takes place online, by phone, or in person. Ensure that all information is both accurate and complete to prevent any delays in the processing of your application.
Step 5: Get an Appraisal
After submitting your application, a home appraisal will be conducted to establish the current market value of your home. If the appraisal indicates that the value of your home exceeds the outstanding balance of your mortgage, the lender may approve your application for a HELOC loan.
Step 6: Prepare for Closing
Before accessing your HELOC funds, you must sign loan documents and pay the necessary fees. (Of course, before signing anything, make sure that you fully comprehend all of the terms and conditions involved.) Some lenders may make funds available within a mere three days following the closing of your HELOC.
Tax Benefits and Considerations
Homeowners can deduct HELOC interest if the borrowed funds are used for buying, building, or significantly improving their primary residence. Interest deductions are limited to the first $375,000 of the HELOC principal for individual taxpayers ($750,000 for married couples filing jointly). Consulting a tax advisor is recommended to navigate the specific tax implications and confirm eligibility for deductions related to HELOCs.
How Much Does a HELOC Cost?
HELOC costs are lower than typical home loan or mortgage refinance costs, which can range from 2% to 5% of the loan amount. With HELOCs, the biggest cost is the appraisal fee, which can reach $500. Other costs may include application and administrative fees. Some lenders charge annual maintenance, transaction, inactivity, or early termination fees. In some cases, lenders may reduce or waive fees but increase the interest rate, so make sure to compare offers from several lenders.
Alternatives to HELOCs
There are other ways to get equity out of your home, such as home equity loans and cash-out refinancing. And personal loans are an option if you prefer an unsecured loan. Carefully consider the advantages and disadvantages of each option to determine the one that best meets your requirements.
Home Equity Loan
Unlike HELOCs, home equity loans provide a fixed lump sum amount and are paid back at a set interest rate. Borrowers can usually access up to 85% of the equity built in their home through a home equity loan. Use a home equity loan calculator to estimate your borrowing capacity.
If you’re debating between a cash-out refinance vs a home equity line of credit, maybe this will help: Cash-out refinancing lets homeowners refinance their mortgage for more than what’s owed and receive the difference in cash. This option suits those needing a large lump sum and prefer a single monthly payment.
Personal Loan
Personal loans do not require collateral, making them a viable option for those without significant home equity. A personal loan provides a lump sum of $1,000 to $100,000 and is paid back in regular, fixed payments with interest over a set term of 2-7 years. They can be used for home improvements, debt consolidation, and other large expenses.
Credit Cards
Credit cards and HELOCs are both forms of revolving debt. Instead of receiving a lump sum of money, you get access to a credit line that you tap as needed. But credit cards come with higher interest rates than HELOCs, which can make them much more expensive if you carry a large balance from month to month. While credit cards offer flexibility for smaller purchases, a home loan like a HELOC can provide a more cost-effective solution for larger expenses such as home improvements or debt consolidation.
The Takeaway
A home equity line of credit can serve as a valuable financial tool for homeowners seeking to capitalize on their home’s accumulated equity. HELOCs typically provide competitive interest rates and flexible repayment options. A HELOC’s variable interest rate means that monthly payments can increase unexpectedly depending on the market. But for homeowners who aren’t sure how much they need for a major project, a HELOC is a flexible option that’s worth consideration.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit brokered by SoFi.
The monthly payment on a $50,000 home equity line of credit can vary based on several factors, including how much of the credit line you draw, the interest rate, and repayment terms. With an 8.00% interest rate and a 10-year term, your monthly payment will be about $607. This also assumes you make interest-only payments through the draw period.
Is a HELOC a good idea right now?
Determining whether a home equity line of credit is a sound financial decision hinges on a variety of individual financial circumstances. While HELOCs can be advantageous for home improvements, debt consolidation, and other substantial expenses, it is imperative to carefully consider the interest rates, repayment terms, and potential risks associated with this type of credit.
What is the monthly payment on a $100,000 HELOC?
The payment required for a $100,000 home equity line of credit (HELOC) can be easily calculated with a HELOC monthly payment calculator. Various factors, such as the prevailing interest rate, the duration of the repayment term, any associated fees, and other relevant details, will influence the final monthly payment. But assuming you draw the full amount, secure a 7.00% interest rate, and choose a 20-year repayment term, your monthly payment should be about $836.
What are the benefits of a HELOC?
Home equity lines of credit, also known as HELOCs, offer homeowners flexible access to funds, competitive interest rates, and potential tax advantages. Common uses of HELOCs encompass home improvement projects, educational expenses, and debt consolidation strategies.
Do you need an appraisal for a HELOC?
An appraisal is generally required for HELOC applications to ascertain the current market value of the property. This appraisal aids lenders in evaluating the amount of available equity and setting the borrowing limit.
What disqualifies you from getting a home equity loan?
Several factors, such as a poor credit history, insufficient home equity, and a high debt-to-income ratio, can disqualify you from obtaining a home equity loan. Familiarizing yourself with the requirements for various types of home equity loans can enhance your chances of meeting the criteria and securing a loan.
How difficult is it to get a HELOC?
The level of difficulty in securing a HELOC is contingent upon several factors, including your credit score, the amount of home equity accumulated, and the stability of your income.
Does HELOC affect credit score?
Applying for a home equity line of credit may temporarily cause a slight decrease in your credit score because of the hard inquiry. However, making consistent and punctual payments on your HELOC can have a positive impact on your credit score over time, as it demonstrates responsible borrowing behavior and a positive credit history.
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²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945. All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee. Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice. Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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Managing your money can feel overwhelming enough — the last thing you want is another project for your to-do list. But, as the year comes to a close and you’re making your New Year’s resolutions, take a breath, and consider whether you’re happy with three core elements of your financial life: spending, debt, and investing for the future.
They’re big topics, but we’re going to help keep it super simple, dedicating one article to each. It’ll only take a minute, and could plant the seeds for big changes in 2025.
Up first, spending.
It’s easy to feel guilty about overspending on holiday gifts, travel, food, and fun. Maybe you feel a pit in your stomach as you take out your credit card yet again. Perhaps you find yourself casually confessing to friends that you’ve blown your budget. Or it’s a sad secret you keep to yourself.
No matter how much you make and whatever the season, if you’re not in control of your spending, it’s controlling you — burdening you with credit card debt, preventing you from saving for the long term, or keeping you from doing the things you love. And taking the reins may not be as hard as you think, whether you call it a budget or not.
The first step is to find real motivation. Whether you’re saving to buy a house, treating yourself to a trip to Europe, or just not going into the red, setting goals will help you stay strong when you feel tempted to spend.
Next, take an inventory of your expenses and make a list of wants versus needs. Using an app can help. (Here’s SoFi’s free Relay app, which automates budget tracking and goal setting.)
Then, consider the various methods for budgeting and choose whichever one seems the most practical for you to actually use. You can “pay yourself first” by routinely depositing a set amount of money into your savings or investment accounts before paying your bills. You can go with the 50/30/20 rule, where you allocate your income into three buckets: 50% needs, 30% wants, 20% savings. Or if impulse buying is your Achilles heel, try the 30-day rule.
So what? Juggling expenses is hard work. Persistent inflation and 2024’s tenuous job market have only raised the stakes. If you’re unhappy with how much you’re spending or saving, consider making a fresh start in 2025.
And don’t worry if you have a slip-up — using a budget is a commitment to a frame of mind as much as it is a technical exercise. Building healthier financial habits takes practice, like anything else. Reading this means you’re already on your way.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
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