VA Loan Rates in Florida
Florida VA loan RATES TODAY
Current VA loan rates in
Florida.
Viewing your rate won’t affect your score.
Compare VA loan rates in Florida.
Key Points
• VA loan rates are influenced by economic factors such as inflation and bond market dynamics.
• A mere 1% drop in the VA loan rate can translate to hefty savings on interest.
• Opting for a 15-year mortgage could be a smart move, helping you save on interest in the long run, even if the monthly payments are a bit steeper.
• Some borrowers refinance out of or into adjustable-rate mortgages. These typically have lower initial refinance rates and could be a good option for those who plan to move or refinance in the near future.
• Homeowners can request a mortgage recast to lower monthly payments without changing the VA loan rate. The typical cost is $100 to $500.
Introduction to VA loan Rates
A VA loan is the process of replacing your existing home loan with a new one. The terms of the new mortgage can be different, but the most common goal is to secure a lower interest rate and reduced monthly mortgage payments. The type of refinance you choose will determine your interest rate. This guide will help you understand how current mortgage rates are set and how you can get the best available rate. By the end, you’ll have a better understanding of what to expect and how to make an informed decision about refinancing your home.
Where Do Mortgage Rates Come From?
The Federal Reserve, aka the Fed, sets the short-term interest rates that banks use. Although home loan rates aren’t directly tied to Fed rates, they follow the same economic trends. So when the Fed’s interest rate is high, chances are mortgage rates will be too.
Other mortgage rate influencers include the bond market, inflation, and the unemployment rate. We’ll get into those more below.
How Interest Rates Affect Home Affordability
Mortgage rates have a bigger impact on home affordability than you may realize. Consider the national median home price of $412,300 for Q2 2024. With a 30-year fixed mortgage at 3.00%, the monthly payment is approximately $1,390. However, if the interest rate increases to 6.00%, the monthly payment jumps to $1,977. Such an increase — more than 40% — can affect affordability for many buyers.
Should Homebuyers Wait for Interest Rates to Drop?
The burning question, especially if you’re buying your first home, is: Should I jump in now or wait? All else being equal, the answer is probably don’t wait. Although mortgage rates have been higher than they were during the pandemic, they’re actually close to the 50-year average. And when rates do drop, the housing market will be flooded by buyers who have been sitting on the sidelines.
While it’s always tempting to wait for lower rates, your personal circumstances are more important. If you’re ready financially and need a new home, higher interest rates shouldn’t deter you. After all, a mortgage refinance could still lower your rate later.
Understand Trends in Florida Mortgage Interest Rates
Understanding historical mortgage rate trends can provide valuable insights into the future. In Florida, mortgage rates have experienced significant fluctuations over the past two decades. From a high of 7.96% in 2000, rates steadily declined to 5.78% by 2003. While rates have risen in recent years, they remain below historical highs. Experts predict that Florida mortgage rates will likely stay above historical lows for the foreseeable future.
Below you’ll find the average annual interest rate for Florida and the United States for 2000 through 2018. (The FHFA stopped reporting the data in 2018.)
Historical U.S. Mortgage Interest Rates
Looking at a much longer span of time, a half-century, can give you perspective on the rates that are now available. As you can see from the graphic below, it’s pretty rare for rates to dip as low as they did in 2020 and 2021. By keeping an eye on these trends, you can make an informed decision about whether to pursue your VA loan, and when.
Historical Interest Rates in Florida
Florida VA loan rates have seen their share of ups and downs, for the most part trailing the national average just slightly. The chart below shows Florida rates from 2000 to 2018, when the Federal Housing Finance Agency stopped tracking state-specific averages.
| Year | Florida Rate | National Rate |
|---|---|---|
| 2000 | 8.03 | 8.14 |
| 2001 | 7.01 | 7.03 |
| 2002 | 6.61 | 6.62 |
| 2003 | 5.81 | 5.83 |
| 2004 | 5.94 | 5.95 |
| 2005 | 5.98 | 6.00 |
| 2006 | 6.71 | 6.60 |
| 2007 | 6.54 | 6.44 |
| 2008 | 6.15 | 6.09 |
| 2009 | 5.04 | 5.06 |
| 2010 | 4.76 | 4.84 |
| 2011 | 4.52 | 4.66 |
| 2012 | 3.59 | 3.74 |
| 2013 | 3.80 | 3.92 |
| 2014 | 4.08 | 4.24 |
| 2015 | 3.79 | 3.91 |
| 2016 | 3.66 | 3.72 |
| 2017 | 3.98 | 4.03 |
| 2018 | 4.57 | 4.57 |
Factors Affecting Mortgage Rates in Florida
As mentioned above, many factors influence mortgage rates in Florida and nationwide. Some of those are economic, but others are entirely within the homebuyer’s control. Here’s how they break down:
Economic Factors
• The Fed: The federal funds rate serves as a benchmark for other interest rates, including mortgage rates.
• Inflation: When inflation rises, the purchasing power of money decreases, making it more expensive for lenders to lend money. As a result, they may increase interest rates to compensate.
• Unemployment rate: Lower unemployment can result in higher mortgage rates. A low unemployment rate indicates a strong economy, which typically leads to increased demand for housing. This increased demand puts upward pressure on home prices and, not surprisingly, mortgage interest rates.
Consumer Factors
• Credit score: A higher credit score generally results in a lower mortgage interest rate. Lenders view borrowers with higher credit scores as less risky, making them more likely to offer favorable rates.
• Down payment: Increasing your down payment may reduce your mortgage rate. A larger down payment lowers the loan-to-value ratio (LTV), the portion of the home’s value financed by the loan. A lower LTV reduces the lender’s risk and may result in a lower interest rate.
• Income and assets: A steady income is important to lenders, who will check your employment history as well as your salary. Assets like investments and emergency savings also reassure lenders that you could still pay your mortgage in the case of a job loss or other financial setback.
• Type of mortgage loan: Certain types of mortgages tend to have lower rates. For instance, adjustable rate mortgages typically offer lower initial rates than fixed-rate mortgages. Some government-backed loans, like VA mortgages, can also have lower rates. And a shorter loan term usually comes with a lower rate than longer terms.
💡 Recommended: What Is the Average Down Payment On a House?
Mortgage Options for First-Time Homebuyers in Florida
An important step in deciding how to refinance your mortgage is selecting the type of loan you will refinance into. These are some of the most common types.
Conventional Refi
A conventional refinance, also known as a rate-and-term refinance, allows you to change your interest rate, loan term, or both. These loans typically offer higher rates than government-backed loans from the FHA or VA, for example. But a conventional refinance could be a good option if you’re looking to lower your interest rate, change your loan term, or both.
15-Year Mortgage Refi
Some people refinance into a loan with a shorter term than their original mortgage. It’s common to go from a 30-year term to a 15-year one. This means higher monthly payments in the short term, but it’s a savvy move that can slash the total interest you pay over the loan’s lifetime. And if you combine a shorter term with a lower interest rate, you might not even feel such a burden from the larger monthly payments. Some people like the fact that shortening the term helps them get rid of mortgage debt before retirement. (Of course other people might refi from a 15-year loan into a 30-year one. Choosing a term is based on your personal financial circumstances.)
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) offer a low initial interest rate and so might be attractive to some borrowers — especially those who know they plan to sell the home before the rate on their new loan begins to adjust. Some borrowers prefer to adjust out of an ARM and into a fixed-rate loan because they want their monthly payments to be steady and predictable.
Cash-Out Refi
This type of refinance is a powerful financial tool that allows you to leverage your home equity. By refinancing your mortgage for more than you currently owe, you can access a lump sum of cash that can be used for home improvements or debt consolidation, for example. Although a cash-out refinance typically carries a higher VA loan rate than a traditional refinance, it’s one of the more cost-effective ways to borrow a large sum of money.
FHA Refi
FHA loans, backed by the Federal Housing Administration, often offer attractive VA loan rates, making them a popular choice for homeowners. For those with existing FHA loans, the FHA Simple Refinance and FHA Streamline Refinance are designed to simplify the process and potentially reduce your rate. If you don’t have an FHA loan, you may still benefit from an FHA cash-out refinance or FHA 203(k) refinance. The latter is designed for home renovations.
VA Refi
VA loans, guaranteed by the United States Department of Veterans Affairs, are known for offering some of the best VA loan rates. To refinance with a VA interest rate reduction refinance loan (IRRRL), you’ll need to have a VA loan in the first place. There is also a VA cash-out refinance, and anyone who qualifies for a VA loan can use this to take advantage of their home equity in a refinance.
Compare Mortgage Refi Interest Rates
Once you know what type of refinance you’re going to pursue, it’s time to secure a competitive VA loan rate. Here’s what to do:
• Compare rates and fees from multiple lenders.
• Look at the loan’s annual percentage rate (APR), which includes interest and fees. These and other closing costs are part of the total picture of your mortgage refinancing costs.
• Weigh the cost of discount points against long-term savings, and decide whether or not you will purchase points.
A refinance calculator can help you estimate your savings and make an informed decision.
Use an Online Refinance Calculator
Online refinance calculators are a great way to get an estimate of what your new monthly payment may be and to compare different refinance options. You probably used a similar calculator during your home purchase process. Many online refinance calculators will also show you how much you could save by refinancing, which can help you decide if refinancing is the right choice for you.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
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.
The Takeaway
Refinancing your mortgage can be a smart financial move, but it requires some careful consideration and planning. Whether you’re looking to get a lower VA loan rate, tap into your home’s equity, or consolidate debt, it’s important to understand the different types of refinances and the requirements for each. By taking steps to strengthen your credit score and lower your debt-to-income ratio, and by comparing offers from multiple lenders, you can help ensure that you get the best rate and terms for your situation.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
How much would a 1% drop in interest rate affect your monthly payment?
You may be surprised at how much a 1% reduction in your VA loan rate can impact your monthly budget. Let’s say you have a $300,000, 30-year mortgage. If you’re currently paying 7.00% interest and can refinance to 6.00%, you could see your monthly payment amount drop by $197. Over time, that seemingly small change can add up to big savings. And of course the larger your loan amount, the larger your savings as well.
Can I lower my interest rate without refinancing?
It might be difficult to lower your mortgage interest rate without refinancing, but you can reduce your monthly payments by undertaking a mortgage recast. A mortgage recast involves making a lump-sum payment toward your principal balance. (Make sure you tell your lender the money is to be credited to the principal you owe.) You can request that your lender then “recast” your monthly payment amount to reflect the reduced principal. Of course, this only works if you have a lump sum on hand. If you’re facing financial hardship, you could also ask your lender about a loan modification. Your lender will have a formal request process for this type of adjustment.
Is there a fee to recast your mortgage?
The fee to recast your mortgage ranges from $150 to $500, which is far less than the cost of a refinance. To determine if recasting your mortgage is worth it, look at how the interest saved over the remaining life of your loan compares to the earnings or savings you might enjoy if you used that lump sum in another way — for example, to pay off some other form of debt, or to make investments.
How many times can you refinance your home loan?
There’s no official rule on how many times you can refinance your home. But, each time you do, there are closing costs to consider and a potential impact on your credit score. Take a step back and weigh the benefits of a lower VA loan rate against these costs and impacts. Before you make a decision, consider the current interest rate climate, your financial situation, and your long-term goals. Refinancing can be a savvy financial move, but it’s important to make sure it’s the right move for you.
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.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
SOHL-Q125-198
More VA loan resources.
-
How to Get Preapproved for a VA Home Mortgage Loan?
-
What is a VA Home Loan and How Does it Work?
-
Pros and Cons of VA Loans
Apply online or call for a complimentary mortgage consultation.
FHA Loan Rates in Florida
Florida FHA loan RATES TODAY
Current FHA loan rates in
Florida.
Viewing your rate won’t affect your score.
Compare FHA loan rates in Florida.
Key Points
• FHA loan rates are influenced by economic factors such as inflation and bond market dynamics.
• A mere 1% drop in the FHA loan rate can translate to hefty savings on interest.
• Opting for a 15-year mortgage could be a smart move, helping you save on interest in the long run, even if the monthly payments are a bit steeper.
• Some borrowers refinance out of or into adjustable-rate mortgages. These typically have lower initial refinance rates and could be a good option for those who plan to move or refinance in the near future.
• Homeowners can request a mortgage recast to lower monthly payments without changing the FHA loan rate. The typical cost is $100 to $500.
Introduction to FHA loan Rates
A FHA loan is the process of replacing your existing home loan with a new one. The terms of the new mortgage can be different, but the most common goal is to secure a lower interest rate and reduced monthly mortgage payments. The type of refinance you choose will determine your interest rate. This guide will help you understand how current mortgage rates are set and how you can get the best available rate. By the end, you’ll have a better understanding of what to expect and how to make an informed decision about refinancing your home.
Where Do Mortgage Rates Come From?
The Federal Reserve, aka the Fed, sets the short-term interest rates that banks use. Although home loan rates aren’t directly tied to Fed rates, they follow the same economic trends. So when the Fed’s interest rate is high, chances are mortgage rates will be too.
Other mortgage rate influencers include the bond market, inflation, and the unemployment rate. We’ll get into those more below.
How Interest Rates Affect Home Affordability
Mortgage rates have a bigger impact on home affordability than you may realize. Consider the national median home price of $412,300 for Q2 2024. With a 30-year fixed mortgage at 3.00%, the monthly payment is approximately $1,390. However, if the interest rate increases to 6.00%, the monthly payment jumps to $1,977. Such an increase — more than 40% — can affect affordability for many buyers.
Should Homebuyers Wait for Interest Rates to Drop?
The burning question, especially if you’re buying your first home, is: Should I jump in now or wait? All else being equal, the answer is probably don’t wait. Although mortgage rates have been higher than they were during the pandemic, they’re actually close to the 50-year average. And when rates do drop, the housing market will be flooded by buyers who have been sitting on the sidelines.
While it’s always tempting to wait for lower rates, your personal circumstances are more important. If you’re ready financially and need a new home, higher interest rates shouldn’t deter you. After all, a mortgage refinance could still lower your rate later.
Understand Trends in Florida Mortgage Interest Rates
Understanding historical mortgage rate trends can provide valuable insights into the future. In Florida, mortgage rates have experienced significant fluctuations over the past two decades. From a high of 7.96% in 2000, rates steadily declined to 5.78% by 2003. While rates have risen in recent years, they remain below historical highs. Experts predict that Florida mortgage rates will likely stay above historical lows for the foreseeable future.
Below you’ll find the average annual interest rate for Florida and the United States for 2000 through 2018. (The FHFA stopped reporting the data in 2018.)
Historical U.S. Mortgage Interest Rates
Looking at a much longer span of time, a half-century, can give you perspective on the rates that are now available. As you can see from the graphic below, it’s pretty rare for rates to dip as low as they did in 2020 and 2021. By keeping an eye on these trends, you can make an informed decision about whether to pursue your FHA loan, and when.
Historical Interest Rates in Florida
Florida FHA loan rates have seen their share of ups and downs, for the most part trailing the national average just slightly. The chart below shows Florida rates from 2000 to 2018, when the Federal Housing Finance Agency stopped tracking state-specific averages.
| Year | Florida Rate | National Rate |
|---|---|---|
| 2000 | 8.03 | 8.14 |
| 2001 | 7.01 | 7.03 |
| 2002 | 6.61 | 6.62 |
| 2003 | 5.81 | 5.83 |
| 2004 | 5.94 | 5.95 |
| 2005 | 5.98 | 6.00 |
| 2006 | 6.71 | 6.60 |
| 2007 | 6.54 | 6.44 |
| 2008 | 6.15 | 6.09 |
| 2009 | 5.04 | 5.06 |
| 2010 | 4.76 | 4.84 |
| 2011 | 4.52 | 4.66 |
| 2012 | 3.59 | 3.74 |
| 2013 | 3.80 | 3.92 |
| 2014 | 4.08 | 4.24 |
| 2015 | 3.79 | 3.91 |
| 2016 | 3.66 | 3.72 |
| 2017 | 3.98 | 4.03 |
| 2018 | 4.57 | 4.57 |
Factors Affecting Mortgage Rates in Florida
As mentioned above, many factors influence mortgage rates in Florida and nationwide. Some of those are economic, but others are entirely within the homebuyer’s control. Here’s how they break down:
Economic Factors
• The Fed: The federal funds rate serves as a benchmark for other interest rates, including mortgage rates.
• Inflation: When inflation rises, the purchasing power of money decreases, making it more expensive for lenders to lend money. As a result, they may increase interest rates to compensate.
• Unemployment rate: Lower unemployment can result in higher mortgage rates. A low unemployment rate indicates a strong economy, which typically leads to increased demand for housing. This increased demand puts upward pressure on home prices and, not surprisingly, mortgage interest rates.
Consumer Factors
• Credit score: A higher credit score generally results in a lower mortgage interest rate. Lenders view borrowers with higher credit scores as less risky, making them more likely to offer favorable rates.
• Down payment: Increasing your down payment may reduce your mortgage rate. A larger down payment lowers the loan-to-value ratio (LTV), the portion of the home’s value financed by the loan. A lower LTV reduces the lender’s risk and may result in a lower interest rate.
• Income and assets: A steady income is important to lenders, who will check your employment history as well as your salary. Assets like investments and emergency savings also reassure lenders that you could still pay your mortgage in the case of a job loss or other financial setback.
• Type of mortgage loan: Certain types of mortgages tend to have lower rates. For instance, adjustable rate mortgages typically offer lower initial rates than fixed-rate mortgages. Some government-backed loans, like FHA mortgages, can also have lower rates. And a shorter loan term usually comes with a lower rate than longer terms.
💡 Recommended: What Is the Average Down Payment On a House?
Mortgage Options for First-Time Homebuyers in Florida
An important step in deciding how to refinance your mortgage is selecting the type of loan you will refinance into. These are some of the most common types.
Conventional Refi
A conventional refinance, also known as a rate-and-term refinance, allows you to change your interest rate, loan term, or both. These loans typically offer higher rates than government-backed loans from the FHA or FHA, for example. But a conventional refinance could be a good option if you’re looking to lower your interest rate, change your loan term, or both.
15-Year Mortgage Refi
Some people refinance into a loan with a shorter term than their original mortgage. It’s common to go from a 30-year term to a 15-year one. This means higher monthly payments in the short term, but it’s a savvy move that can slash the total interest you pay over the loan’s lifetime. And if you combine a shorter term with a lower interest rate, you might not even feel such a burden from the larger monthly payments. Some people like the fact that shortening the term helps them get rid of mortgage debt before retirement. (Of course other people might refi from a 15-year loan into a 30-year one. Choosing a term is based on your personal financial circumstances.)
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) offer a low initial interest rate and so might be attractive to some borrowers — especially those who know they plan to sell the home before the rate on their new loan begins to adjust. Some borrowers prefer to adjust out of an ARM and into a fixed-rate loan because they want their monthly payments to be steady and predictable.
Cash-Out Refi
This type of refinance is a powerful financial tool that allows you to leverage your home equity. By refinancing your mortgage for more than you currently owe, you can access a lump sum of cash that can be used for home improvements or debt consolidation, for example. Although a cash-out refinance typically carries a higher FHA loan rate than a traditional refinance, it’s one of the more cost-effective ways to borrow a large sum of money.
FHA Refi
FHA loans, backed by the Federal Housing Administration, often offer attractive FHA loan rates, making them a popular choice for homeowners. For those with existing FHA loans, the FHA Simple Refinance and FHA Streamline Refinance are designed to simplify the process and potentially reduce your rate. If you don’t have an FHA loan, you may still benefit from an FHA cash-out refinance or FHA 203(k) refinance. The latter is designed for home renovations.
VA Refi
FHA loans, guaranteed by the United States Department of Veterans Affairs, are known for offering some of the best FHA loan rates. To refinance with a FHA interest rate reduction refinance loan (IRRRL), you’ll need to have a FHA loan in the first place. There is also a FHA cash-out refinance, and anyone who qualifies for a FHA loan can use this to take advantage of their home equity in a refinance.
Compare Mortgage Refi Interest Rates
Once you know what type of refinance you’re going to pursue, it’s time to secure a competitive FHA loan rate. Here’s what to do:
• Compare rates and fees from multiple lenders.
• Look at the loan’s annual percentage rate (APR), which includes interest and fees. These and other closing costs are part of the total picture of your mortgage refinancing costs.
• Weigh the cost of discount points against long-term savings, and decide whether or not you will purchase points.
A refinance calculator can help you estimate your savings and make an informed decision.
Use an Online Refinance Calculator
Online refinance calculators are a great way to get an estimate of what your new monthly payment may be and to compare different refinance options. You probably used a similar calculator during your home purchase process. Many online refinance calculators will also show you how much you could save by refinancing, which can help you decide if refinancing is the right choice for you.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
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.
The Takeaway
Refinancing your mortgage can be a smart financial move, but it requires some careful consideration and planning. Whether you’re looking to get a lower FHA loan rate, tap into your home’s equity, or consolidate debt, it’s important to understand the different types of refinances and the requirements for each. By taking steps to strengthen your credit score and lower your debt-to-income ratio, and by comparing offers from multiple lenders, you can help ensure that you get the best rate and terms for your situation.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
How much would a 1% drop in interest rate affect your monthly payment?
You may be surprised at how much a 1% reduction in your FHA loan rate can impact your monthly budget. Let’s say you have a $300,000, 30-year mortgage. If you’re currently paying 7.00% interest and can refinance to 6.00%, you could see your monthly payment amount drop by $197. Over time, that seemingly small change can add up to big savings. And of course the larger your loan amount, the larger your savings as well.
Can I lower my interest rate without refinancing?
It might be difficult to lower your mortgage interest rate without refinancing, but you can reduce your monthly payments by undertaking a mortgage recast. A mortgage recast involves making a lump-sum payment toward your principal balance. (Make sure you tell your lender the money is to be credited to the principal you owe.) You can request that your lender then “recast” your monthly payment amount to reflect the reduced principal. Of course, this only works if you have a lump sum on hand. If you’re facing financial hardship, you could also ask your lender about a loan modification. Your lender will have a formal request process for this type of adjustment.
Is there a fee to recast your mortgage?
The fee to recast your mortgage ranges from $150 to $500, which is far less than the cost of a refinance. To determine if recasting your mortgage is worth it, look at how the interest saved over the remaining life of your loan compares to the earnings or savings you might enjoy if you used that lump sum in another way — for example, to pay off some other form of debt, or to make investments.
How many times can you refinance your home loan?
There’s no official rule on how many times you can refinance your home. But, each time you do, there are closing costs to consider and a potential impact on your credit score. Take a step back and weigh the benefits of a lower FHA loan rate against these costs and impacts. Before you make a decision, consider the current interest rate climate, your financial situation, and your long-term goals. Refinancing can be a savvy financial move, but it’s important to make sure it’s the right move for you.
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.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
SOHL-Q125-198
More FHA loan resources.
-
What Is the Minimum Down Payment for a FHA Loan?
-
Can I Get an FHA Loan if I Already Own a Home?
-
FHA Loan vs. Conventional Mortgage: What’s the Difference?
Apply online or call for a complimentary mortgage consultation.
Cost of Living in Alabama
Cost of Living in Alabama
(Last Updated – 03/2025)
Whether Tiger or Crimson Tide, there’s no doubt that Alabamans are intensely proud of their state. With some of the best college football legacies in the nation, its delicious southern cuisines, or the fact that Mobile, Alabama was actually the site of the first celebration of Mardi Gras, it’s not surprising why Alabamans are so proud to hail from the Heart of Dixie.
Alabama’s ranks continue to grow, as its population has risen each year since 2010 and now numbers over 5,157,000 residents. One of the things that continues to draw in new residents is no doubt Alabama’s affordable cost of living.
We take an up-close look at some of the key costs of living that make up the budgets of everyday Alabamans.
What’s the Average Cost of Living in Alabama?
Average Cost of Living in Alabama: $44,529 per year
The Bureau of Economic Analysis cites that the average cost of living in Alabama is around $44,529 per year for a typical single individual.
This is good news for anyone who’s thinking of moving to Alabama, as MERIC’s 2024 Cost of Living Index actually ranked Alabama as having the 5th lowest cost of living in the United States. The only other Southeastern state to beat Alabama on that list was Mississippi.
As a whole, the Southeastern United States region is fairly affordable when compared to the nation at large. It’s hard to go wrong if you’re looking to settle down without paying an arm and a leg.
We’ve broken down the major costs of living into five key categories to help paint a picture of what annual expenses look like in Alabama.
|
Category |
Average Annual Per-Capita Cost in Alabama |
|
Housing and Utilities |
$7,218 |
|
Health Care |
$7,505 |
|
Food and Beverages (nonrestaurant) |
$3,833 |
|
Gasoline and Energy Goods |
$1,502 |
|
All Other Personal Expenditures |
$24,471 |
Housing Costs in Alabama
Average Housing Costs in Alabama: $802 to $1,351 per month
The average home in Alabama costs around $226,118, according to Zillow’s January 2025 housing data. This is almost half of the national median sales price of an existing U.S. home of $355,328, according to Zillow.
• Median monthly mortgage cost: $1,386
• Median studio rent: $802
• Median one-bedroom rent: $849
• Median two-bedroom rent: $935
• Median three-bedroom rent: $1,086
• Median four-bedroom rent: $1,351
• Median gross rent: $982
Home prices and rental costs vary widely depending on where you live. When calculating your monthly budget, don’t forget to factor in other costs like utilities, taxes, and maintenance in addition to your monthly mortgage payment.
Below are the typical 2024 home prices for major cities in Alabama, according to Zillow.
|
Alabama City |
Typical Home Price* |
|
Birmingham |
$246,548 |
|
Huntsville |
$300,972 |
|
Mobile |
$188,321 |
|
Montgomery |
$193,072 |
|
Tuscaloosa |
$215,479 |
|
Daphne |
$379,134 |
|
Auburn |
$310,509 |
|
Decatur |
$223,247 |
|
Dothan |
$178,311 |
|
Florence |
$202,662 |
|
Anniston |
$155,262 |
|
Gadsden |
$169,026 |
|
Albertville |
$231,325 |
|
Cullman |
$233,252 |
|
Talladega |
$180,358 |
|
Enterprise |
$194,636 |
|
Scottsboro |
$190,100 |
|
Ozark |
$152,182 |
|
Selma |
$77,275 |
|
Troy |
$162,189 |
* data as of December 2024
Utility Costs in Alabama
Average Utility Costs in Alabama: $398 per month
Alabamians can expect to pay a total of $398 per month on their utility bills. This includes electricity, gas, cable, and water.
The exact monthly tally will depend on your property, utility usage habits, and the type of services you choose (e.g., internet only or TV and internet). We’ve broken out some common utility costs below.
|
Utility |
Average Alabama Bill |
|
Electricity |
$163 |
|
Natural Gas |
$81 |
|
Cable & Internet |
$118 |
|
Water |
$57 |
Sources: U.S. Energy Information Administration, Electric Sales, Revenue, and Average Price; Statista.com, “Average monthly residential utility costs in the United States, by state”; DoxoInsights, U.S. Cable & Internet Market Size and Household Spending Report; and Rentcafe.com, What Is the Average Water Bill?
Groceries & Food
Average Grocery & Food Costs in Alabama: $319 per person, per month
Alabamians pay an average of $319 per month on grocery and nonrestaurant food costs, or about $3,833 per year, according to the BEA’s latest Personal Consumption Expenditures report.
Alabama’s grocery and food costs are fairly cheap when compared to the rest of the nation; this is fairly typical of Southeastern states in general.
However bear in mind that these expenses will vary depending on where you live within Alabama. Expect to pay more for groceries if you’re living in a larger urban city like Mobile versus a smaller city like Decatur.
Below are the Council for Community and Economic Research’s rankings of food costs across major Alabama cities as of 2024.
|
Alabama City |
Grocery Items Index |
|
Birmingham |
99.3 |
|
Anniston-Calhoun County |
97.0 |
|
Auburn-Opelika |
95.9 |
|
Florence |
94.3 |
|
Decatur-Hartselle |
95.6 |
|
Montgomery |
99.0 |
|
Huntsville |
100.2 |
|
Mobile |
98.7 |
|
Dothan |
96.5 |
Recommended: Grocery Shopping on a Budget
Transportation
Average Transportation Costs in Alabama: $10,561 to $19,652 per year
If you’re planning to drive through the Land of Dixie, you’ll want to keep an eye on your transportation costs. Fuel costs in the Southeast aren’t cheap, and those bills can quickly add up (particularly if you’re driving American muscle!).
Depending on your ride of choice, family size, and the number of cars you choose to own, your transportation costs can vary widely. We’ve broken down estimates of these costs as calculated by MIT’s Living Wage Calculator for 2024.
|
Family Makeup |
Average Annual Transportation Cost |
|
One adult, no children |
$10,561 |
|
Two working adults, no children |
$12,222 |
|
Two working adults, three children |
$19,652 |
Health Care
Average Health Care Costs in Alabama: $7,505 per person, per year
The average annual per-capita cost of health care in Alabama is $7,505, according to the BEA’s Person Consumption Expenditures report.
Within the Southeast, Alabama has the second-lowest health care costs, with only South Carolina coming in cheaper.
While health care costs can vary depending on your age, health history, and location, you can minimize your expenses by shopping policies across multiple insurance providers. Alabamans can shop for health insurance providers using the federal insurance marketplace, HealthCare.gov.
Child Care
Average Child Care Costs in Alabama: $714 to $1,031 per child, per month
Regardless of who you are, there’s no getting around childcare costs when it comes to having a family. Fortunately, Alabama happens to have the second-lowest child care costs in the country, according to the Economic Policy Institute. Only Mississippi had lower child care costs.
However, that doesn’t mean that child care is cheap; far from it. Depending on the type of care you need, child care can cost thousands of dollars a month. This can be especially unforgiving for younger families where both spouses have to work.
If you need help paying for child care costs, the Alabama Department of Human Resources lets eligible families apply for Subsidized Day Care Services. Check out the Federal Child Care and Development Fund website for more information.
We’ve provided estimates of the average child care costs in Alabama below, per data from CostofChildCare.org.
|
Type of Child Care |
Average Cost Per Month, Per Child |
|
Infant Classroom |
$1,031 |
|
Toddler Classroom |
$813 |
|
Preschooler Classroom |
$714 |
|
Home-Based Family Child Care |
$822 |
Taxes
Highest Marginal Tax Rate in Alabama: 5%
Alabama has a graduated-rate income tax structure where the highest tax bracket is assessed at a 5% marginal tax rate, according to the Tax Foundation’s State Individual Income Tax Rates and Brackets for 2025.
Taxes are a part of Alabama’s cost of living that can’t be avoided. Its top marginal tax rate isn’t too bad, especially when stacked against other southern states like Georgia, which has a top tax rate of 5.39%, or South Carolina, with a rate of 6.2%. But that’s also more than its neighbors Tennessee and Florida, which have no income tax.
Miscellaneous Costs
Now that we’ve covered the everyday costs of living, let’s take a look at the costs of some of Alabama’s greatest attractions.
• Gallon of Milo’s Famous Sweet Tea, founded in 1946 and headquartered in Bessemer, AL: starts at $3.72
• Adult tickets to the U.S. Space and & Rocket Center in Huntsville, AL: $30
• Shrimp & Grits at Classic on Noble in Anniston, AL: $17-$28
• A Famous Fried Chicken Lunch Plate at Martin’s in Montgomery, AL: $12.99
Alabama’s collection of beautiful woodlands and gulf shores certainly doesn’t cost anything to visit; it’s one of those unique states where individuals can hike in the morning and enjoy sandy coastal beaches in the afternoon.
The state of Alabama is also rife with historic and educational attractions, from the U.S. Space & Rocket Center to the USS Alabama Battleship Memorial Park.
However, the one defining feature of Alabama is football.
Akin to a religion, you haven’t experienced college football until you’ve been to Alabama. The University of Alabama-Auburn University rivalry is one of the most heated rivalries in American football, and this matchup plays out every year at the annual Iron Bowl.
This matchup is especially heated as both schools are located within the same state and locals are split across each team. This contention plays out between neighbors, coworkers, and even within families.
Alabama certainly has its vibes. Whether you’re trying to beat the hot summers, sipping on a sweet tea or your favorite brand of “coke,” or you’re enjoying a barbeque cookout at the tailgate of your favorite football team, you’re sure to find something about Alabama that fits your niche.
Recommended: What Are the Average Monthly Expenses for One Person?
How Much Money Do You Need to Live Comfortably in Alabama?
While the amount you need to live comfortably will vary based on your lifestyle, MIT’s Living Wage Calculator cites that the typical single, childless Alabaman will need to earn $20.50 an hour, or $42,640 per year, to qualify for a “living wage” in the state.
When it comes to costs, Alabama doesn’t do half bad, as U.S. News & World Report’s Affordability Rankings ranked Alabama the 3rd most affordable state in the union, which is close to MERIC’s ranking of the 5th lowest cost of living in the U.S. Depending on your personal tastes and income, a comfortable life in Alabama is more within reach than you may think.
What City Has the Lowest Cost of Living in Alabama?
The city of Anniston has the lowest cost of living in Alabama, according to the Council for Community and Economic Research’s (CCER) 2024 Cost of Living Index data.
To help you compare the cost of living across different cities in Alabama, we’ve displayed the three cities with the lowest cost of living in the State.
Florence
Florence is home to around 42,400 residents per census estimates and sits on the banks of the mighty Tennessee River. The city is host to gorgeous views of the riverfront and is home to the University of North Alabama, the oldest collegiate institution in the state. It also is just across the river from Muscle Shoals, AL, home of FAME Recording Studios, birthplace of the famous Muscle Shoals Sound. The city ranked well because it had the second lowest housing costs of Alabama’s major cities, and the lowest overall score at 83.5.
Decatur
Decatur also sits just off the shores of the Tennessee River, about 48 miles east of Florence, and the town boasts lots of opportunities for recreation on the water. Nearby Wheeler Wildlife Refuge offers outdoor activities from bird watching (and their annual Festival of the Cranes) to fishing and camping. Home to just over 58,000 people per census estimates, Decatur is a short 30-minute drive to bustling Huntsville, and had the second-lowest overall CCER score of 84.3.
Anniston
Originally an iron town founded in 1872, Anniston sits at the foothills of the Appalachian mountains on the cusp of the Talladega National Forest. The city is surrounded by scenic views and woodlands. It has the third lowest overall score at 84.8 and the lowest housing costs of any major cities in Alabama according to the CCER’s 2024 data.
SoFi Home Loans
Alabama can be a great option for football fans looking for a state with hot summers but great barbecue to make up for it. If the money you save doesn’t go directly to game tickets, you might find Alabama to be an affordable place to live and raise a family.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
Photo credit: iStock/Kruck20
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.
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.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.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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.
SOHL-Q125-154
Cost of Living in New Hampshire
Cost of Living in New Hampshire
(Last Updated – 04/2025)
New Hampshire offers residents close proximity to stunning nature, rich history, and culture. All of the perks of residing in New Hampshire may be why it’s one of the most expensive states to live in.
To better understand the New Hampshire cost of living and how your budget would be affected by a move to the Granite State, keep reading.
What’s the Average Cost of Living in New Hampshire?
Average Cost of Living in New Hampshire: $65,908 per year
If you’re considering relocating to this New England state, the cost of living could affect your monthly budget.
According to MERIC data gathered, New Hampshire has the 42nd lowest cost of living in the country. If New Hampshire exceeds your budget, don’t bank on finding an affordable nearby state to move to. All of the states around New Hampshire — Maine, Massachusetts, Connecticut, Rhode Island, and New York — are some of the most expensive in the country to live in.
So, what is the cost of living in New Hampshire? According to data from the Bureau of Economic Analysis, the average total personal consumption cost in New Hampshire comes to $65,908 per year. Here’s where that spending is going, specifically.
|
Category |
Average Annual Per-Capita Cost in New Hampshire |
|
Housing and Utilities |
$11,859 |
|
Health Care |
$9,886 |
|
Food and Beverages (nonrestaurant) |
$5,396 |
|
Gasoline and Energy Goods |
$1,714 |
|
All Other Personal Consumption Expenditures |
$37,054 |
That works out to $5,492 in average monthly expenses for each resident of the White Mountain State.
Housing Costs in New Hampshire
Average Housing Costs in New Hampshire: $1,082 to $1,980 per month
New Hampshire has only 653,069 housing units, according to the latest census estimates. The typical home value in New Hampshire runs about $480,212 in February 2025, Zillow noted.
Here’s what you can expect to spend monthly on housing in New Hampshire, per the most recent census data:
• Median monthly mortgage cost: $2,305
• Median studio rent: $1,082
• Median one-bedroom rent: $1,193
• Median two-bedroom rent: $1,670
• Median three-bedroom rent: $1,811
• Median four-bedroom rent: $1,980
• Median gross rent: $1,517
How much the average home costs depends on where it is, of course. Let’s take a look at the typical home values for major New Hampshire cities, according to Zillow data as of February 2025.
|
New Hampshire City |
Typical Home Price |
|
Manchester |
$489,518 |
|
Concord |
$455,041 |
|
Keene |
$357,099 |
|
Laconia |
$471,814 |
|
Berlin |
$244,288 |
Utility Costs in New Hampshire
Average Utility Costs in New Hampshire: $424 per month
What should you expect to spend on utilities monthly in New Hampshire? Here’s a breakdown of the average utility spending across major categories.
|
Utility |
Average New Hampshire Bill |
|
Electricity |
$150 |
|
Natural Gas |
$90 |
|
Cable & Internet |
$151 |
|
Water |
$33 |
Sources: U.S. Energy Information Administration, Electric Sales, Revenue, and Average Price; Statista.com, “Average monthly residential utility costs in the United States, by state”; DoxoInsights, U.S. Cable & Internet Market Size and Household Spending Report; and Rentcafe.com, What Is the Average Water Bill?
Groceries & Food
Average Grocery & Food Costs in New Hampshire: $450 per person, per month
So you can budget accordingly, let’s take a closer look at how much you’d likely spend on food on average in New Hampshire. The Bureau of Economic Analysis puts the average annual food and beverage cost per person at $5,396, or about $450 a month.
The Council for Community and Economic Research ranks the food costs in major American cities. The only major New Hampshire city the council examined was Manchester. This is Manchester’s grocery costs ranking for 2024.
|
New Hampshire City |
Grocery Items Index |
|
Manchester |
112.6 |
Transportation
Average Transportation Costs in New Hampshire: $10,861 to $20,210 per year
How many people you need to schlep to work, school, and recreation activities will affect how much you spend on transportation each year. To give you a better idea of what your family may spend on transportation in New Hampshire, here’s a breakdown of average spending, according to MIT’s Living Wage Calculator for 2025.
|
Family Makeup |
Average Annual Transportation Cost |
|
One adult, no children |
$10,861 |
|
Two working adults, no children |
$12,570 |
|
Two working adults, three children |
$20,210 |
Health Care
Average Health Care Costs in New Hampshire: $9,886 per person, per year
How much you’d need to budget for health care in New Hampshire depends on medical needs and type of coverage. That said, the average annual per-person cost of health care in New Hampshire is $9,886, according to the Bureau of Economic Analysis Personal Consumption Expenditures by State report.
Child Care
Average Child Care Costs in New Hampshire: $839 to $1,150 or more per child, per month
Parents know that child care is a major expense.
Those who meet certain income requirements and are working, searching for work, or participating in a training program might catch a break with child care scholarships.
This is what many parents can expect to spend on child care costs in New Hampshire, per data from CostofChildCare.org.
|
Type of Child Care |
Average Cost Per Month, Per Child |
|
Infant Classroom |
$1,150 |
|
Toddler Classroom |
$943 |
|
Preschooler Classroom |
$839 |
|
Home-Based Family Child Care |
$1,060 |
Taxes
Tax Rate in New Hampshire: No income tax
New Hampshire recently repealed its taxes on interest and dividend income and has no personal income taxes, says the Tax Foundation’s State Individual Income Tax Rates and Brackets for 2025. It has a 7.5% corporate income tax rate but no state sales tax, estate tax, or inheritance tax.
In fact, New Hampshire ranks 6th overall in the Tax Foundation’s 2025 State Tax Competitiveness Index.
Miscellaneous Costs
If personal expenditures in New Hampshire average $37,054 per person each year, some of that could be spent on fun. Here are a few ideas (costs are accurate as of March 2025):
• Learn more about architecture and the work of Frank Lloyd Wright at the Currier Museum of Art in Manchester: General admission is $20 (adults), $15 (students and seniors), $5 (teens 13-17), and is free for kids under 12 years old.
• Get the kids’ imagination flowing in the city of Glen at Story Land, where fairytales come to life: Single-day tickets start at $39.99 with certain conditions.
• Enjoy some time high above nature with a round-trip ride on America’s first aerial tramway at Cannon Mountain in Franconia. Tickets start at $25 (all riders over the age of 5).
• Grab a fresh apple cider donut and some apples (in season) right from the orchard at Meadow Ledge Farm in Loudon. A 6-pack of donuts is $6.50.
• Interested in seeing some beautiful fall foliage? The Kancamagus Highway from Lincoln to Conway is 34.5 miles of scenery with hiking trails and more to do along the drive. It’s free to drive, but parking at one of the trailheads is $5 per vehicle per day.
How Much Money Do You Need to Live Comfortably in New Hampshire?
Your family size, lifestyle, and other factors will influence how accessible a comfortable style of living is in New Hampshire, but let’s just say that comfort will come at a price.
New Hampshire ranks 44th on U.S. News & World Report’s Affordability Rankings, which measures the average cost of living in a given state against the average amount of money that state’s households have.
MERIC’s ranking agrees: It found that New Hampshire has the 42nd lowest cost of living (or 9th highest) in the country among the 50 states and Washington, D.C.
What City Has the Lowest Cost of Living in New Hampshire?
The Council for Community and Economic Research singled out Manchester as the only New Hampshire city for which they collected cost-of-living data.
Manchester
With a cost-of-living index of 112.6, Manchester is a relatively affordable city. (It’s all relative, right?) Boston, just 52 miles to the south of Manchester, has a composite index score of 145.9 and Burlington in Vermont has a composite score of 114.4.
Even though Manchester is relatively small, with 115,474 residents as of the last census check, the homes here aren’t cheap (see above). It’s full of history, from Native Americans and early European settlers, to the Industrial Revolution and beyond.
SoFi Home Loans
New Hampshire is a beautiful state with a lot to offer. If you’re ready to face the New Hampshire cost of living and put down roots, it might be time to shop for a home and a mortgage.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
How much money do you need to make to live comfortably in New Hampshire?
A comfortable income in New Hampshire will depend on your family size and lifestyle, but the most recent data from the Bureau of Economic Analysis estimates the average annual cost to live in the state is $65,908.
Is New Hampshire expensive to live in?
New Hampshire is on average one of the more expensive states to live in. The most recent MERIC cost-of-living data puts the state as the 9th most expensive state to live in, and US News & World Report’s Affordability Rankings put the state at a similar spot, at 7th.
What are the pros and cons of living in New Hampshire?
While New Hampshire is a state with no personal income tax, state sales tax, or estate and inheritance tax, it does have a high cost of living. It ranks well in public safety per US News & World Report data, as well as in categories like the economy (driven by its growing tech industry), education, and natural environment.
Photo credit: iStock/DenisTangneyJr
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.
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.
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.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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.
SOHL-Q125-141
Liz Looks at: Relationship Problems
Something’s Gotta Give
You’ve heard me talk about “relationship problems” in financial markets in the past. It’s the phrase I use to point out when variables that typically behave a certain way in relation to one another are behaving outside those norms. Often the abnormal behavior is not the “problem” per se, but that these relationship problems don’t last forever and are likely to correct themselves – eventually.
One of the most stark relationship problems of this cycle is the one between real Treasury yields and price-to-earnings ratios (P/Es). I’ve covered this one before, but it’s a biggie and it remains dislocated, so it deserves to be covered again.
In a typical environment, these lines should move in similar directions and be closer together. (Note: the real yield is inverted on this chart, when yields are rising the magenta line falls). In other words, the spread between them should be tighter, and as real yields fall (i.e. the magenta line rises), P/Es should rise (i.e. the blue line rises). That’s what a more typical relationship would look like.
That’s not what’s happening right now: The gap between the two is currently very wide and does not appear to be narrowing.
Stock Valuations & Real Rates
This relationship problem presented itself between 2010 and 2016, although in reverse – P/Es were on the bottom and real yields were on top (i.e. negative). It took roughly seven years for the lines to converge, and just like in rocky relationships that do get better, it happened through a combination of both variables moving.
How long will it take for the gap to narrow this time, and will the lines ever fully converge again?
This Ends One Way Or Another
I am of the mind that this time is not different, and the two lines will converge again. Others are of the mind that this time is different, and suggest that some relationships are forever changed. I can agree that the details and drivers of market environments do change thanks to innovation (financial and technological), product mixes, demographics, and regulations, but many conventional rules of market behavior do not.
Regardless of which school of thought you land in, the argument is one that will continue into perpetuity. There are periods of time when each side will look “right” and others where each side will look “wrong”. You can make money in either case.
My expectation is that the gap between these two lines narrows slightly for a period of time before converging quickly and in a more dramatic fashion. The narrowing process could happen with the backdrop of a relatively healthy economy, sturdy profit margins, and fiscal and monetary policies that don’t present any major surprises. In that case, I’d expect real yields to fall and approach a level closer to 1% (currently 1.77%), and P/Es to compress slightly as earnings growth increases and market levels remain stable or even fall slightly.
We are roughly three years into this current dislocation, and as previously mentioned, the last major dislocation lasted six years. Perhaps we’re only halfway done, but there’s no knowing. What I do feel confident in is that the dislocation will end, one way or another.
Reading People’s Faces
If I were a gambler, I’d put my money on the P/E ratio being the element that has to move more than real yields. But that almost seems too easy. Of course it would make sense for some of the froth to come out of markets after three years (if we include 2025 YTD) of double-digit returns in the S&P and Nasdaq.
Nevertheless, I’m finding it very difficult to come up with ways the real yield would fall enough to narrow the gap. Particularly when looking at this chart of the nominal 10-year Treasury yield and real GDP growth.
Yields Usually Reflect Growth Expectations
In theory, the nominal 10-year Treasury yield should be close to the sum of real GDP growth and 10-year inflation expectations. Currently, the 10-year yield is at 3.97%, 10-year inflation expectations are at 2.28%, and the latest expectation for Q3 GDP growth from the Atlanta Fed is 3.9% annualized.
That admittedly simple math would suggest the 10-year Treasury yield should be closer to 6.2%, which would make the gap between the two lines even wider. So that can’t be plausible (famous last words).
What we’re left with is a gap that is likely to narrow at some point, and the best we can do is make educated guesses about how that might happen. If it is in fact the P/E ratio that needs to fall, we all better brush up on our poker skills of reading people’s faces… because after all, our moves in the stock market are highly dependent on what we think other people are going to do with the same information.
As they say, this too shall pass (perhaps we learned that by watching the gold market this week.) I’m positioning for this to last a while longer, and for the more likely scenario to be a compression in P/Es.
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.
SoFi can’t guarantee future financial performance, and past performance is no indication of future success. This information isn’t financial advice. Investment decisions should be based on specific financial needs, goals and risk appetite.
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 Thomas is a Registered Representative of SoFi Securities and Investment Advisor Representative of SoFi Wealth. Form ADV 2A is available at www.sofi.com/legal/adv.
OTM2025102201
Read more
Stay up to date on the latest business news and stock market happenings.