SoFi Blog

Buying a home can be a source of new excitement in your life—but it can also be the source of a bunch of new problems. Once you’ve made it through the whole house-hunting process and closed on a home, there’s still plenty to think about, from considering home renovations, to hiring contractors, to dealing with moving expenses. And of course, while you’re handling all of this, you’re still paying your new mortgage every month.

Finding your dream home can be tricky, especially in a tough real estate market. Currently, home sales are falling nationwide due to a housing shortage that’s keeping prices high, making the process especially thorny. That’s why so many people are turning to home renovations to convert an eh, it’ll do house into a dream home. In fact, according to a survey by HomeAdvisor, home renovation spending is expected to continue to rise in 2017, with 80% of homeowners planning projects in the next 12 months.

Kate McKeon was one of those people. After growing up all over, from Sacramento to Europe, McKeon went to the University of Southern California to get her bachelor’s degree. She thought she was ready to become a Midwest girl during law school in Michigan, “then it got to be October,” she joked, and cold. She returned to L.A. in 2009, where she was ready to take another big step: Becoming a foster parent.

You have to earn the right to call yourself a New Yorker, and one of the ways you can do that is by suffering through the challenge that is finding housing in New York City. It’s a badge of honor you can wear with pride once you do—I mean, New York is one of the only cities in the world where people willingly pay over $1,000 a month for an apartment that has a shower in the kitchen.

But even as one of the most expensive cities in the world, it may make financial sense to buy sooner rather than later in this city. You only need to stay put for three years to make buying in Queens worth the price, four and a half years for Brooklyn, and seven and a half years for Manhattan, according to a study done by StreetEasy.

The desire for space and affordability sends some first-time homebuyers to New Jersey, Long Island, or quaint towns along the Hudson River (all of which still come with steep price tags). But for those committed to staying within the five boroughs, the question remains: Just how the heck do you navigate being a first-time homebuyer in New York City?

If you’re in the market to buy a home, or you recently became a homeowner, you’ve probably noticed that mortgage interest rates are ticking up. And just this past March, the Federal Reserve increased the Federal Funds rate by one-quarter of a percentage point for the second time since December. Coincidence? Probably.

We’ll get more into what the Fed rate hike is all about below, but the burning question is: What impact does it have on mortgage rates? Most importantly, how will it affect home affordability and your monthly budget?

To help you make major mortgage decisions going forward—ones that have the potential to impact you for the next 30 years—we’ve broken down what the Fed rate hike really means for current and future mortgage borrowers, and the actions you should consider.

Because home prices are expected to continue to slowly rise in many parts of the country, it makes sense that most homeowners would desire to stay put rather than upsize to a new house. Although the grass might look a little greener elsewhere, it’s possible to add value to your current home—even if you’re on a budget.

So,whether you have the cash saved up for home investment, or you are looking to borrow for your next home project, consider these five budget-friendly enhancements: