Compare HELOC rates in Massachusetts.

Introduction to HELOC Rates

If you’re looking at home equity line of credit interest rates in Massachusetts, congratulations: Chances are good that you’ve been diligently paying off your home loan, you’ve built up some equity in your property, and are looking at ways to get equity out of your home to finance a renovation, cover education costs, or perhaps consolidate debt into one payment with a more reasonable interest rate (smart move).

HELOCs can be a great financial tool, but it’s important to fully understand how they work and what determines the interest rate you’ll be offered, and to assess your financial situation before signing on for the line of credit. Take a few minutes to study this guide and you’ll be better equipped to get the best available HELOC rate and terms in Massachusetts. Step one, understand the basics:

What Is a HELOC?

A HELOC is a revolving line of credit. In practical use, it functions much like a credit card. The amount you can borrow is based on your home equity, which is the difference between your home’s current value and your mortgage balance. Your home serves as collateral for the lender, which often means that a HELOC has a more favorable interest rate than an unsecured loan, such as a personal loan. It’s important to understand that HELOC interest rates are usually variable, meaning that after a period of time (defined in your HELOC agreement), the rate can adjust up (or down) based on prevailing interest rates.

HELOCs typically have two phases: the draw period and the repayment period.

The Draw Period

During the initial draw period, which typically spans a decade, you can withdraw funds, in any increment they desire, up to the established credit limit. Borrowers are responsible for making interest-only payments during this phase, while principal payments often remain optional. This flexible arrangement enables borrowers to conveniently borrow and repay funds within the specified credit limit according to their needs. Best of all, you only pay interest on the amount of the credit line that you are actively using.

The Repayment Period

The repayment period of a home equity line of credit typically lasts 10 to 20 years. During this phase, borrowing ends, and you pay back the principal with interest. Again, interest rates are variable, so borrowers should be prepared for fluctuations.

Massachusetts HELOC rates change over time, so it’s important to stay informed about potential changes. Using a HELOC repayment calculator can help you estimate what monthly payments might be during the repayment phase, and you can plug in different interest rate numbers to see if you have the appetite for rates if they drift to the higher side.

Where Do HELOC Interest Rates Come From?

HELOC interest rates are linked to lenders’ prime rates, which in turn are influenced by the Federal Reserve’s policy decisions. The prime rate is the rate lenders offer customers with the best credit-usage pedigree. That rate is then adjusted for other borrowers based on the lender’s perception of their default risk. Understanding this might have you tuning into the Fed’s movements more closely than you are accustomed to.

How Interest Rates Impact HELOC Affordability

It’s worth spending a little time following news of the Fed and prime rates because the interest rate you obtain on a HELOC (or any type of home equity loan) has a significant impact on your finances.

The chart below shows what it would be like to enter the repayment phase of a HELOC owing $25,000; $50,000; or $100,000 and how different terms and interest rates would affect your monthly payments. Remember that over the life of a HELOC, a difference of $50 or $100 in the monthly payment could equal thousands of dollars in extra interest paid.

HELOC Interest Rate Trends

Given that HELOC rates closely follow the trends of the prime rate, it pays to have some sense of the history of average prime rates if you’re thinking about a home equity line of credit in Massachusetts. As you can see in the chart below, the prime rate has fluctuated in recent years, hitting a low of 3.25% in 2020 and a high of 8.50% in 2023. The graph below shows a deeper historical perspective: average prime rates over more than a half-century.

Historical Prime Interest Rate

Historical U.S. Prime Rates

Factors Influencing HELOC Rates

The prime rate is important, but it’s not the only thing that determines the HELOC rate you might be offered in Massachusetts. Here’s where personal qualifications come into play. Understanding each of the factors below can be instrumental in securing a competitive rate.

Home Equity

Possessing significant equity in your primary residence elevates your financial standing in the eyes of lenders, potentially resulting in more favorable interest rates. You’ll typically need to meet an equity threshold of 15% to 20% to qualify for a HELOC. But the more equity you have, the better.

Credit Score

You’ll probably need a credit score of 680 or even 700 to obtain a HELOC, and again, a higher number will help you get better rates.

Stable Income

Lenders will ask what you earn, but they’ll also be looking at how consistent your earnings are. A stable income indicates a lower risk of default, potentially leading to better HELOC rates.

Loan-to-Value Ratio

Lenders often require a combined loan-to-value ratio of 90% or less. This means the amount you owe on your mortgage plus the amount of your HELOC can’t add up to more than 90% of your home’s value.

Variable vs Fixed Interest Rates

As we’ve pointed out, HELOCs feature variable interest rates, which will fluctuate during the loan term. Variable interest rates start out lower than typical fixed rates but will adjust up or down with market conditions. It’s important to be aware of that before signing on to a HELOC, and to use a HELOC calculator to look at what your monthly payments might be should interest rates rise.

Tools & Calculators

Online calculators can be an invaluable part of the HELOC process. Using them can help you figure out what your borrowing power might be, and show you the monthly cost and total cost of your line of credit. These are a few of our most useful tools:

How to Qualify for a Competitive HELOC Rate

To secure a favorable HELOC rate in Massachusetts, it helps to have a steady and reliable source of income and a good handle on your debts. Below is a list of things you can do before you apply for a HELOC in Massachusetts to put your best foot forward:

Care for Your Credit Score

Pay your bills on time, don’t use your credit cards to the absolute max, and check your credit report for errors. These three steps will go a long way toward getting you the kind of credit score lenders crave.

Assess Your Home Equity

You can use a real estate site to get a general idea of your property value. Then subtract whatever you owe on your mortgage. Divide the answer by your property value and you’ll have your home equity. Ideally it’s more than 20% (and the more the better), though some lenders allow 15%.

Calculate Your Debt-to-Income Ratio (DTI)

Your debt-to-income (DTI) ratio is the amount you owe in monthly debt payments divided by your gross monthly income. It’s a key indicator of your financial health. Lenders prefer a DTI ratio below 36%, though some will go as high as 50%. The lower your DTI, the more attractive your loan application becomes.

Application Process for a HELOC in Massachusetts

There are 6 steps to the HELOC application and approval process. Taking them one at a time and double-checking all the information you supply to ensure accuracy will help prevent bumps along the way. The whole process can take 30 to 60 days:

Step 1. Run the Numbers

Check your credit score, calculate your DTI ratio, and use an online estimate of your home’s value to make sure you have at least 15% home equity before applying for a HELOC.

Step 2. Compare Lenders

Visit lender sites or check in with your bank’s mortgage officer. Don’t just compare interest rates. Look at qualification requirements, minimum and maximum credit lines offered, fees, and the length of the repayment period.

Step 3: Gather Your Documents

You’ll need to have a government-issued I.D. and recent pay stubs, W-2 forms, and a recent tax return at hand for the application process. If you’re self-employed, lenders may ask for two years’ tax returns plus a profit-and-loss statement. There’s a homeowners insurance declaration page as part of most applications, so make sure your insurance on your home is up to date and you have the paperwork. Having these documents ready can expedite the application process and help you secure the best HELOC rates in Massachusetts.

Step 4: Submit Your Application

Submit your HELOC application online or in person, or even over the phone if that’s what the lender recommends. Submitting a complete and accurate application increases your chances of approval without weeks of back-and-forth over missing information.

Step 5: Get an Appraisal

After you submit your application, a home appraisal is typically required. This might be an in-person appraisal, though some lenders use an automated valuation model (AVM) appraisal, where an algorithm crawls data to compute estimated value. The appraisal helps determine the amount of equity you have in your home, which affects the HELOC rate you’ll qualify for. A higher appraisal value can lead to a larger line of credit.

Step 6: Prepare for Closing

Once you find a HELOC offer you consider suitable, you’re ready to close on the agreement. Before accessing your HELOC funds, you’ll sign loan documents and pay necessary fees. Lenders can make funds available as quickly as three days after you’ve signed your HELOC agreement.

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 interest paid on the first $375,000 of the mortgage principal for individual taxpayers ($750,000 for married couples filing jointly). Consult a tax advisor for help navigating this deduction (you’ll have to itemize deductions on your return).

Closing Costs and Fees

HELOC closing costs are lower than home-buying or refinancing costs. Appraisal fees are usually the highest expense, ranging from $300 to $600. Other costs include application, origination, and administrative fees. Some lenders charge annual maintenance, transaction, inactivity, or early termination fees. Consider these costs when applying for a HELOC.

Alternatives to HELOCs

In addition to HELOCs, other possible financing options include home equity loans, cash-out refinancing, and personal loans. Looking at each of these in detail will help you choose the most suitable method for your specific financial requirements.

Home Equity Loan

Unlike HELOCs which function somewhat like a credit card, a home equity loan provides a lump sum amount and is paid back at a fixed interest rate. Borrowers can usually access up to 85% of the equity built in their home through a home equity loan.

To understand the HELOC vs. home equity loan comparison, take a quick look at the chart below:

Cash-Out Refinance

A cash-out refinance is a mortgage refinance with a twist: Homeowners can refinance their mortgage for more than they owe. They pay off their first mortgage and then take the cash that remains and use it for any purpose.

Two things to think about when considering a cash-out refinance vs. a home equity line of credit A cash-out refi leaves you with one monthly payment, as opposed to two. However, it also leaves you with a brand-new interest rate. And if that rate is not as favorable as the rate on your initial mortgage, this method may not be the best choice for you.

Personal Loan

A personal loan is repaid in regular installments over a predetermined duration, typically two to seven years. Some borrowers like the idea of having a loan that is not secured by their home. However, personal loan interest rates rarely beat out rates for a HELOC or home equity loan, so if you are comfortable using your home as collateral, you might find it to be a more affordable way to borrow.

Credit Cards

While credit cards are well suited to making everyday purchases, they have higher interest rates than HELOCs, making them a more expensive way to carry a large balance.

The Takeaway

HELOCs offer a versatile way to access the equity in your home. You withdraw only what you need at any given time, and can use it for all sorts of purposes. Understanding the terms and rate of a home equity line of credit is crucial for making an informed financial decision. It’s important to realize that HELOCs’ variable rates rise or fall over time, so monthly payments are rarely consistent. Using a HELOC repayment calculator can be a smart way to get comfy with this variability.

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.

FAQ

What is the monthly payment on a $50,000 HELOC?

Assuming you’re using the entire $50,000 credit line, the monthly payment will vary depending on the interest rate and term. A rate of 7.00% and a 20-year term will get you a $388 monthly payment. A rate of 8.00% and a shorter term of 10 years will equal a monthly payment of $607.

Is a HELOC a good idea right now?

If you need a significant sum of money and have a solid credit score and have built up equity in your home, a HELOC is a good way to borrow money at a lower interest rate than you would find available with many other methods.

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

To calculate the monthly payment on a $100,000 HELOC, it’s best to use a HELOC monthly payment calculator, which will take into consideration how much of the line of credit you have used, your current interest rate, and the repayment term of your HELOC.

What are the benefits of a HELOC?

HELOCs offer several benefits, including competitive interest rates, flexible repayment terms, and the ability to borrow (and pay interest on) only what you need at any given time. A home equity line of credit can be used for various purposes, such as home improvements, debt consolidation, and education expenses. Additionally, the interest paid on a HELOC is sometimes tax-deductible, providing further financial advantages.

Do you need an appraisal for a HELOC?

Yes, you typically need an appraisal for a HELOC. The appraisal helps determine the value of your home, which is crucial for calculating the amount of equity you can borrow.

What disqualifies you from getting a home equity loan?

Several factors can disqualify you from getting a home equity loan. These include a low credit score, insufficient home equity, high debt-to-income ratio, and unstable income. It’s important to assess your eligibility for a home equity loan or home equity line of credit before applying.

How difficult is it to get a HELOC?

The difficulty of getting a HELOC depends on your financial health and the lender’s requirements. Generally, you’ll need a credit score of 680 or more, at least 15% equity in your home, and a debt-to-income (DTI) ratio of 50% or less. If your earnings are not consistent, you may find that you have to provide extra financial documentation so that a prospective lender is comfortable with your ability to repay what you borrow.

Does HELOC affect credit score?

Yes, a HELOC can affect your credit score. Applying for a HELOC may result in a hard inquiry on your credit report, which can temporarily lower your score. Additionally, using a significant portion of your available credit line can increase your credit utilization ratio, which can negatively impact your score. However, making timely payments on your home equity line of credit can help improve your credit score over time.

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.

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.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

SOHL-Q424-031

Compare HELOC rates in Texas.

Introduction to HELOC Rates

A HELOC is a revolving line of credit that works like a credit card but is secured by your home’s equity. HELOC rates are influenced by factors like economic conditions, the federal funds rate, and a borrower’s financial profile. Understanding these factors can help you navigate the market and get the best available deal on your home equity line of credit.

What Is a HELOC?

What is a home equity line of credit? A HELOC is a revolving line of credit that is similar to a credit card but is secured by your home’s equity. A HELOC isn’t like a traditional loan. It allows you to borrow and repay funds repeatedly during the draw period.

The Draw Period

A home equity line of credit’s draw period typically spans a decade. During that time, homeowners can access funds up to a preapproved credit limit. Interest payments are generally required only on the money withdrawn. Principal payments may be optional. The flexibility of HELOCs make them particularly appealing for addressing large financial obligations.

Recommended: HELOC Interest-Only Calculator

The Repayment Period

The repayment period of a HELOC is usually 10 to 20 years. During this period, the borrower pays back both the principal and interest. Using a HELOC repayment calculator will help homeowners plan and prepare, since variable interest rates can fluctuate and impact the overall cost of the loan.

Where Do HELOC Interest Rates Come From?

When you want to get equity out of your home, it’s important to understand a little something about interest rates. HELOC interest rates are tied to the prime rate, Federal Reserve rates, and broader economic factors.

How Interest Rates Impact HELOC Affordability

Interest rates have a significant impact on the affordability of any home loan. A 1% fluctuation in the interest rate can result in a borrower paying thousands of dollars in additional interest over the life of the loan. Here is a look at one example, a $50,000 HELOC repaid over 20 years at three different interest rates:

•   At 6.00%: monthly payment $358, total interest paid $35,972

•   At 7.00%: monthly payment $388, total interest paid $43,036

•   At 8.00%: monthly payment $418, total interest paid $50,373

HELOC Interest Rate Trends

HELOC interest rates closely follow the prime interest rate. Understanding and anticipating potential rate fluctuations can help homeowners make informed decisions regarding when to apply for a HELOC.

Historical Prime Interest Rate

The prime rate’s fluctuations over the years, ranging from a low of 3.25% in 2020 to a high of 8.50% in 2023, have directly influenced HELOC rates in Texas.

Historical U.S. Prime Rates

Factors Influencing HELOC Rates

In addition to the prime rate, HELOC rates in Texas are significantly influenced by a borrower’s home equity, credit score, income, and loan-to-value (CLTV) ratio. When these factors are optimal, they increase a homeowner’s chance of securing a favorable HELOC rate.

Home Equity

If you have significant equity in your home, you can usually score a favorable interest rate for a home equity line of credit. Homeowners who possess a minimum of 15% equity generally qualify for a HELOC. The higher your equity, the less risk your lender assumes.

Credit Score

To secure the most advantageous interest rates on HELOCs, maintain a credit score of 680 or higher — ideally, 700 or above. A higher score indicates you present lower risk to lenders.

Stable Income

Lenders assess your income to determine your ability to pay back a HELOC. A borrower with a steady income stream is less likely to default, and will almost always get a better interest rate. Be sure to provide documentation of your income when you apply.

Loan-to-Value Ratio

Many lenders require your combined loan-to-value ratio (mortgage balance + desired HELOC amount / appraised home value) to be 85% or less. For example, if your home is worth $500,000, your mortgage balance is $300,000, and your HELOC balance is $100,000, your combined LTV ratio is 80%.

Variable vs Fixed Interest Rates

HELOCs tend to have variable interest rates. That means, your rate may change throughout the life of the loan. Variable interest rates often start lower compared to typical fixed rates, but adjust upward or downward depending on market conditions. Understanding how variable rates work is key to managing a HELOC in Texas.

Tools & Calculators

Financial tools including a HELOC monthly payment calculator, a HELOC interest-only calculator, and a home equity loan calculator can be helpful resources. These widgets will help you to estimate payments and better understand the potential financial implications of a home equity line of credit.

How to Qualify for a Competitive HELOC Rate

To obtain the most desirable HELOC rates available in Texas, homeowners should compare multiple lenders. Your credit score and debt-to-income ratio will be key factors when it comes to snagging a highly competitive HELOC offer.

Strengthen to Your Credit Score

Making payments on time and reducing credit card balances can improve your credit score. The higher your credit score, the less risky you appear to lenders.

Assess Your Home Equity

The first thing you need to do when you start a HELOC application is assess your home equity. If you’ve made timely mortgage payments, you’ve built home equity over time. Home renovations also boost the property’s value, and therefore your equity.

Calculate Your Debt-to-Income Ratio (DTI)

Your DTI ratio is important. To calculate, take how much you owe in monthly debt payments (auto loan, student loan, etc.), and divide by your gross monthly income. Home equity lenders often look for a DTI below 36% — the lower your DTI, the better. This ratio is crucial for determining HELOC eligibility.

Application Process for a HELOC in Texas

An application for a HELOC in Texas will require you to submit documents and obtain a home appraisal.

Step 1. Run the Numbers

Assessing your financial situation before you apply is essential. Check your credit scores and calculate your debt-to-income (DTI) ratio, which lenders use to determine your ability to repay the loan. A DTI below 36% will increase your chances of approval. Estimate your home equity to ballpark how much you can borrow. Some lenders offer helpful prequalification tools on their websites.

Step 2. Compare Lenders

See what offers and interest rates you might qualify for. Compare the lenders’ requirements, loan minimums and maximums, fees, and other factors. You’ll also want to note the duration of a lender’s draw, and the repayment periods.

Step 3: Gather Your Documents

Begin putting together all the necessary documents before you plan to apply. Required items are typically proof of income, employment history, credit reports, and documentation of your home’s value. Having these documents ready will speed up the application process.

Step 4: Submit Your Application

Once you have all your documents ready, you can file your HELOC application. This can often be done on the internet, by phone, or in person at the lender’s office. To avoid potential processing delays, make sure all information you provide is accurate.

Step 5: Get an Appraisal

After you submit your application, a lender may request a home appraisal. This is necessary to determine your home’s current market value. If an appraisal shows the value of your home exceeding your mortgage’s outstanding balance, the lender may approve you for a HELOC.

Step 6: Prepare for Closing

Before you’re granted access to funds from your HELOC, your lender will require you to sign loan documents and pay necessary fees. Certain lenders may make funds available within three days after closing. Make sure you understand all terms and conditions.

Tax Benefits and Considerations

HELOC interest qualifies for a tax deduction if the homeowner uses the funds to buy, build, or significantly improve their primary residence. Interest deductions are limited to the first $375,000 of the mortgage principal for individual taxpayers ($750,000 for married couples filing jointly).

Closing Costs and Fees

Good news! HELOC closing costs are lower than home-buying or cash-out refinancing costs. The appraisal fee is the largest expense — it may range from $150 to more than $500. Other costs to know about include application, loan origination, and administrative fees. Lenders may charge annual maintenance, transaction, inactivity, or early termination fees. Or they may waive closing costs, but in that case will usually charge a higher interest rate.

Alternatives to HELOCs

Financing options other than HELOCs include home equity loans, cash-out refinancing, and personal loans. Every option has advantages and considerations.

Home Equity Loan

Unlike HELOCs, home equity loans tend to put a lump sum in your pocket. You pay back different types of home equity loans at a set interest rate. Borrowers can usually access up to 85% of the equity they’ve built through a home equity loan. Here’s an at-a-glance comparison of a HELOC vs home equity loan:

Cash-Out Refinance

Homeowners can also tap into home equity via a mortgage refinance. This means applying for a refinancing of your mortgage loan for the purpose of pulling out cash. This option, however, often comes with higher interest rates.

Recommended: Cash-Out Refinance vs Home Equity Line of Credit

Personal Loan

A personal loan is a flexible, typically unsecured loan. You pay it back in regular payments over a set term of two to seven years. Unlike certain home equity loans, personal loans do not require collateral. Evaluate whether a personal loan or a home equity loan better suits your needs.

Credit Cards

A HELOC comes with a lower interest rate than a credit card, making it a cheaper option for carrying large balances, such as for home renovations or debt consolidation.

The Takeaway

HELOCs make it easy to access the equity in your home. Competitive interest rates and flexible repayment options make a home equity line of credit a valuable financial tool. Make sure you understand the terms and conditions, though — especially concerning variable interest rates and the potential impact on your credit score.

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.

FAQ

What is the monthly payment on a $50,000 HELOC?

A $50,000 HELOC’s monthly payment can fluctuate based on the interest rate and its repayment terms. With an 8.00% interest rate and a 10-year term, your monthly payment will be about $607. The same 8.00% interest rate over a 20-year term will cost you $418 per month, although you’ll pay more total interest with the 20-year term.

Is a HELOC a good idea right now?

This depends on your financial situation and needs. HELOC interest rates are better than those on credit cards and can be useful for spendy projects. But it’s important to consider the variable interest rates down the road, as well as the potential impact on your home equity.

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

You can estimate your monthly payment on $100,000 using a HELOC monthly payment calculator, which crunches your numbers based on the loan amount, interest rate, and repayment period to give you an estimated monthly payment.

For example, if you had a 20-year repayment term and a 6.00% interest rate, your monthly payment would be $716. At a 7.00% interest rate, your payment would jump to $775.

What are the benefits of a HELOC?

HELOCs offer several benefits, including low interest rates compared to credit cards and the flexibility to borrow and repay funds as needed during the draw period. A home equity line of credit can be used for home improvements, debt consolidation, or education expenses. Additionally, the interest paid on a HELOC may be tax-deductible.

Do you need an appraisal for a HELOC?

An appraisal is typically required for HELOCs to determine the value of your home and the amount of equity available.

What disqualifies you from getting a home equity loan?

Several factors can disqualify you from getting a home equity loan, including a low credit score, high debt-to-income ratio, insufficient home equity, or a history of late payments.

How difficult is it to get a HELOC?

It depends on your financial situation and the lender’s requirements. HELOCs typically require a good credit score, sufficient home equity, and a stable income. The application process involves providing thorough documentation and undergoing a home appraisal. Comparing lenders and understanding their qualification requirements can help you weigh the ease or difficulty of obtaining a home equity line of credit.

Does HELOC affect credit score?

It can, in several ways. Applying for a HELOC may result in a hard inquiry, which can temporarily lower your score. Also, high utilization of your credit line can negatively impact your score. But making timely payments on your HELOC can improve your score over time.

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.

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.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

SOHL-Q424-053