Current Mortgage Rates in Minnesota Today
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Compare mortgage rates in Minnesota.
Key Points
• For the most part, average Minnesota mortgage rates have tended to fall slightly below the national average.
• Minnesota as a whole is neither high nor low where the cost of living is concerned. It falls in the middle of U.S. states.
• Economic factors, consumer credit scores, and down payment amounts influence mortgage rates in Minnesota.
• Minnesota offers various mortgage types, including fixed-rate, adjustable-rate, FHA, VA, and USDA loans, each with its own characteristics and eligibility requirements.
• Jumbo loans are available for homebuyers who require a loan exceeding $832,750.
Introduction to Mortgage Interest Rates
Minnesota presents a diverse range of mortgage options for homebuyers looking for a home loan>. By staying informed about current mortgage rates, understanding the type of mortgage loans available, and exploring assistance programs, you can set yourself up for homeownership success in the North Star State.
Where Mortgage Rates Come From
The Federal Reserve, also known as the Fed, plays a pivotal role in setting short-term interest rates that banks use. While home loan rates are not directly tied to Fed rates, they generally follow similar economic trends.
The Fed’s actions influence the cost of borrowing for banks, which in turn affects mortgage rates. When the Fed raises interest rates, mortgage rates typically head north as well. But the Fed’s actions aren’t the only influence on mortgage rates. The factors that affect rates can be broadly categorized into two groups: the state of the economy and the borrower’s financial status. Economic factors include inflation, and unemployment rates. Borrower-specific factors encompass credit score, down payment, income and assets, and the type of mortgage loan a borrower chooses.
How Interest Rates Affect Home Affordability
Mortgage rates have a significant impact on home affordability, one that is often overlooked by homebuyers because the costs associated with a mortgage are paid incrementally, one month at a time. A seemingly small difference in interest rate can affect monthly mortgage payments and the overall cost of a home.
Should Homebuyers Wait for Interest Rates to Drop?
Many homebuyers face the dilemma of whether to buy now or wait for interest rates to drop. This quandary is particularly likely if you’re buying your first home (first-timers may be more at the mercy of the market as they typically have smaller budgets than repeat buyers, who tend to be older and more financially established). While it’s tempting to wait for a more favorable rate, it’s essential to consider the opportunity cost of delaying homeownership: Home prices may rise while you’re waiting. Plus you’re delaying building equity” in your home.
Homeowners who buy when rates are on the higher side can later complete a mortgage refinance to secure lower interest rates when they become available, allowing them to benefit from rate reductions without delaying homeownership.
Recommended: Average Monthly Expenses for One Person
Minnesota Mortgage Rate Trends
Understanding historical mortgage rates can provide homebuyers with valuable insights. As you can see from the data below, Minnesota’s average mortgage rate has for the most part been a bit below the national average. (The Federal Housing Finance Agency stopped tracking this after 2018.)
| Year | Minnesota Rate | U.S. Rate |
|---|---|---|
| 2000 | 7.96 | 8.14 |
| 2001 | 6.88 | 7.03 |
| 2002 | 6.37 | 6.62 |
| 2003 | 5.46 | 5.83 |
| 2004 | 5.44 | 5.95 |
| 2005 | 5.62 | 6.00 |
| 2006 | 6.37 | 6.60 |
| 2007 | 6.29 | 6.44 |
| 2008 | 5.94 | 6.09 |
| 2009 | 4.95 | 5.06 |
| 2010 | 4.72 | 4.84 |
| 2011 | 4.45 | 4.66 |
| 2012 | 3.58 | 3.74 |
| 2013 | 3.85 | 3.92 |
| 2014 | 4.19 | 4.24 |
| 2015 | 3.90 | 3.91 |
| 2016 | 3.72 | 3.72 |
| 2017 | 4.01 | 4.03 |
| 2018 | 4.63 | 4.57 |
Historical U.S. Mortgage Rates
For context, it’s also worth looking at the ups and downs of the national average mortgage rate over several decades. Borrowers in 2023 may have lamented “high” rates of, say, 7.00%. But in the past, rates have reached as high as 18% (and as low as 3%).
Factors Affecting Mortgage Rates in Minnesota
Numerous factors influence mortgage rates in Minnesota and nationwide, as noted above. Let’s look more closely at these.
Economic Factors
Economic factors that impact mortgage rates include the federal funds rate, inflation, and unemployment rates.
• The federal funds rate set by the Fed influences the cost of borrowing for banks. As noted above, when the Fed drops its rate, mortgage rates tend to follow.
• Inflation erodes the value of money, prompting lenders to raise interest rates to maintain their profit margins.
• An unemploment rate that is low signals a robust economy. There may be increased demand for housing and limited supply. Unemployment rates also may indirectly affect the Fed’s actions.
Consumer Factors
Borrower-specific factors that influence mortgage rates include credit score, down payment, income and assets, and the type of mortgage loan.
• A credit score that is strong demonstrates responsible financial behavior, making borrowers more attractive to lenders and leading to lower interest rates.
• A larger down payment reduces the loan amount, lowering the lender’s risk and potentially securing a more favorable interest rate.
• A steady income and substantial assets signal financial stability, making the borrower attractive to potential lenders who may offer lower rates to good candidates.
• The type of mortgage loan you choose influences the interest rate you’re offered. Adjustable-rate mortgages (ARMs) often have lower initial rates, while government-backed loans like VA mortgages may offer preferential rates. Shorter loan terms generally come with lower rates compared to longer terms, although they also have higher monthly payments.
Types of Mortgages Available in Minnesota
Minnesota offers a range of mortgage options to meet the needs of different homebuyers, including fixed-rate, adjustable-rate, FHA, VA, and USDA loans.
Fixed-Rate Mortgage
Fixed-rate mortgages provide stability by maintaining the same interest rate throughout the life of the loan, ensuring predictable monthly payments. They come with different loan terms, such as 10-, 15- or 30-year terms, allowing borrowers to choose a repayment period that suits their financial circumstances.
Adjustable-Rate Mortgage (ARM)
Adjustable-rate mortgages (ARMs) offer lower initial interest rates compared to fixed-rate mortgages, but these rates can change over time based on market conditions. They are an attractive option for those planning to sell or refinance before the initial fixed-rate period ends.
FHA Loan
FHA loans, backed by the Federal Housing Administration, are designed to make homeownership more accessible to borrowers with limited resources or less-than-perfect credit. FHA insurance mitigates the risk for lenders, allowing them to offer FHA loans with less stringent requirements.
VA Loan
VA loans are exclusively available to veterans, active-duty military members, certain Reserve and National Guard members, and surviving spouses, offering favorable terms and benefits. A significant advantage of VA loans is the elimination of the down payment requirement, making homeownership more accessible to eligible veterans and military personnel. Getting a Certificate of Eligibility (COE) is the first step on the path to a VA loan.
USDA Loan
USDA loans, backed by the U.S. Department of Agriculture, are tailored to borrowers whose income falls below a certain threshold (which is specific to the location) and who are seeking to purchase a home in a rural area. These loans do not require a down payment and have competitive interest rates as well.
Jumbo Loan
Borrowers seeking financing for homes exceeding the conforming loan limits set by the Federal Housing Finance Agency (FHFA) will need a .
Conventional loans have a maximum loan amount, which may not be sufficient for higher-priced homes. In Minnesota, the conforming loan limit for 2026 is $832,750.
Recommended: Home Loan Help Center
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Popular Places to Get a Mortgage in Minnesota
Securing a mortgage with payments you can afford often depends on choosing a location where home prices are affordable. Fortunately, Minnesota is relatively affordable as U.S. states go, ranking 25th on the list of U.S. states ranked by cost of living. The average home value in Minnesota is $336,954. Of course, costs do vary across Minnesota’s cities and towns.
Least Expensive Locations
Areas with a lower cost of living, such as Little Falls (average home value: $265,619), St. Cloud ($247,028), and Duluth ($271,694), offer more affordable housing options and potentially more favorable mortgage terms. Consult SoFi’s list of best affordable places in the U.S. for information about housing-market bargains across the country.
Most Expensive Locations
Cities with a higher cost of living include Minneapolis and North Oaks, and may present challenges for some buyers in terms of housing affordability, although in a large city such as Minneapolis, buyers may find a wider range of options at all price points.
Tips for Securing a Competitive Mortgage Rate in Minnesota
Obtaining a competitive mortgage rate can significantly reduce the overall cost of a home over the life of the loan. Here are some tips on how to help ensure you secure the best available rate for your financial profile.
Compare Interest Rates and Fees
Shopping around and comparing interest rates and fees from multiple lenders is essential to securing a good mortgage deal. Make sure you understand all associated costs, including upfront fees and closing charges, so you can make an informed decision about your lender.
Get Preapproved
Obtaining preapproval for a mortgage strengthens a homebuyer’s position in the market and allows for quicker action when finding the right property. When you go through the mortgage preapproval process and emerge with a letter from a lender, you’re able to demonstrate to a seller that you are financially prepared to buy their home.
Minnesota Mortgage Resources
Minnesota offers various resources and programs to assist homebuyers, particularly if you qualify as a first-time homebuyer. Take a look at these options:
First-Time Homebuyer Programs
Minnesota Housing offers programs tailored to first-time homebuyers. The Start Up program is for first-time homebuyers, which is someone who hasn’t had an ownership interest in a principal residence in the last three years. There are both income and home price limits which can vary by county. (Repeat homebuyers who don’t qualify for Start Up might qualify for Step Up, another program that offers higher income and home price limits.)
Down Payment Assistance
Down payment assistance programs help homebuyers overcome the hurdle of accumulating a substantial down payment. In Minnesota, if you qualify for Start Up or Step Up you may also be able to take advantage of one of the state’s down payment and closing cost assistance programs, which offer deferred payment loans.
Tools & Calculators
Online tools and calculators can help you estimate mortgage payments, compare loan options, and make informed financial decisions.
Run the numbers on your home loan.
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Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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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.
Refinancing Options in Minnesota
Homeowners in Minnesota have the option of refinancing their mortgages to secure a lower interest rate or adjust loan terms. Banks and other lenders offer refinancing options, and those with government loans may be able to take advantage of one of these programs:
• FHA Streamline Refinance offers a simplified process for FHA loan holders to obtain lower interest rates.
• VA Interest-Rate Reduction Refinance Loans provide VA loan holders with an opportunity to lower their monthly payments.
Closing Costs, Taxes, and Fees in Minnesota
Closing costs in Minnesota typically range from 3% to 6% of the home’s purchase price. Closing costs and fees represent a significant portion of the homebuying expenses and should be carefully considered when budgeting for a property purchase. The cost of closing varies depending on the value and location of the property.
The Takeaway
Minnesota’s mortgage landscape offers a range of options for homebuyers, catering to diverse financial situations and homeownership goals. Minnesota provides a variety of mortgage products, assistance programs, and refinancing options to meet the needs of different homebuyers. Homebuyers in Minnesota who do their due diligence and explore not only interest rates but also fees and closing costs can navigate the mortgage process effectively and save money long term.
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
Will mortgage rates drop in Minnesota?
Predicting future mortgage rate movements is challenging due to the influence of multiple economic factors. Staying informed about market trends and consulting financial experts can help homebuyers make an informed decision.
Will mortgage rates ever go back to normal?
The definition of a “normal” mortgage rate can vary over time. Rates fluctuate, and homebuyers would really be better off focusing on securing the best possible rate within the current market conditions if they need financing for a home.
Will Minnesota home prices ever drop?
Real estate market dynamics are complex and each local area is different. If you want to get a sense of whether prices might drop in a specific town or city in Minnesota, consult a local real estate agent who has expertise in the area.
Is it a good time to buy a house in Minnesota?
Prices in some Minnesota markets have declined in recent months, but others have risen. Whether this is the right time to buy in any given market likely depends more on your financial situation and your personal needs (is your rental lease ending? Is a baby on the way? Are you relocating for work?), and less on the market conditions.
How do I lock in a mortgage rate?
Locking in a mortgage rate usually involves paying a fee to the lender to secure the current interest rate for a specified period. This protects homebuyers from potential rate increases during the lock-in period, which is typically 30 to 60 days, but can sometimes extend longer.
How do mortgage interest rates work?
Mortgage interest rates are influenced by various economic factors, including the federal funds rate, inflation, and unemployment rates. But the specific rate you will be offered is also dependent on your personal financial situation—how much you wish to borrow, how large a down payment you plan to make, your credit score, and other metrics.
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.
†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.
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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.
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More home loan resources.
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First-Time Homebuyer Guide
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First-Time Homebuyer Programs and Loans
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Mortgage Preapproval Process
Preparing to buy a house? Call us for a complimentary mortgage consultation.
SoFi Launches Two New Credit Cards: SoFi Everyday Cash Rewards and SoFi Essential
SAN FRANCISCO – October 9, 2024 — SoFi Technologies, Inc. (NASDAQ: SOFI), a member-centric, one-stop shop for digital financial services that helps members borrow, save, spend, invest, and protect their money, is expanding its credit card portfolio with the launch of the SoFi Everyday Cash Rewards Credit Card and the SoFi Essential Credit Card ¹. These new offerings, developed with extensive feedback from SoFi members and others, build on the company’s commitment to helping people achieve their ambitions and serving their diverse credit needs.
The SoFi Everyday Cash Rewards Credit Card is designed for those who prioritize earning rewards on their daily spending, whether it’s dining out, ordering in, or shopping for groceries. Key features include: ²
- • 3% unlimited cash back on dining out at restaurants and dining in, including food delivery services like DoorDash, UberEats and Grubhub.
- • 2% unlimited cash back on grocery store and convenience store purchases, both in-store and online.
- • 1% unlimited cash back on all other eligible purchases.
The SoFi Essential Credit Card offers a reliable credit line for those focused on building or improving their credit scores – part of SoFi’s commitment to helping people get their money right. This card is designed with no surprise fees and no annual³, over-limit, or foreign transaction fees.
“We want to be there for the biggest moments in our members’ lives and everything in between,” said Anthony Noto, CEO of SoFi. “Expanding SoFi’s credit card offering enables us to better serve more people’s spending and borrowing needs, whether it’s helping them earn rewards for everyday purchases or building their credit. We’re excited to continue building out our credit card products and deepening our relationships with our members.”
For more details on the SoFi credit cards, please visit: https://www.sofi.com/blog/sofi-everyday-cash-rewards-sofi-essential/
About SoFi
SoFi (NASDAQ: SOFI) is a member-centric, one-stop shop for digital financial services on a mission to help people achieve financial independence to realize their ambitions. The company’s full suite of financial products and services helps its nearly 8.8 million SoFi members borrow, save, spend, invest, and protect their money better by giving them fast access to the tools they need to get their money right, all in one app. SoFi also equips members with the resources they need to get ahead – like credentialed financial planners, exclusive experiences and events, and a thriving community – on their path to financial independence.
SoFi innovates across three business segments: Lending, Financial Services – which includes SoFi Checking and Savings, SoFi Invest, SoFi Credit Card, SoFi Protect, and SoFi Financial Insights – and Technology Platform, which offers the only end-to-end vertically integrated financial technology stack servicing 150 million users across the world. SoFi Bank, N.A., an affiliate of SoFi, is a nationally chartered bank, regulated by the OCC and FDIC and SoFi is a bank holding company regulated by the Federal Reserve. The company is also the naming rights partner of SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles Rams. For more information, visit SoFi.com or download our iOS and Android apps.
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Disclosures:
- ¹ SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circle’s design is a trademark of Mastercard International Incorporated.
- ² Members can earn cash back rewards points for every dollar spent on purchases, including 3% cash back rewards on eligible dining purchases, 2% cash back rewards on eligible grocery purchases, and 1% cash back rewards on all other eligible purchases. No rewards points will be earned with respect to reversed transactions, returned purchases, or other similar transactions. When you elect to redeem rewards points toward active SoFi accounts, including but not limited to, your SoFi Checking or Savings account, SoFi Money® account, SoFi Active Invest account, SoFi Credit Card account, SoFi Personal Loan, Private Student Loan, Student Loan Refinance, or toward SoFi Travel purchases, your rewards points will redeem at a rate of 1 cent per every point. For more details, please visit www.sofi.com/card/rewards?cardType=h. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A.
- ³ See Pricing, Terms & Conditions at www.sofi.com/card/terms?cardType=a
Current Mortgage Rates in New Mexico Today
Preparing to buy a house? Call us for a complimentary mortgage consultation.
Compare mortgage rates in New Mexico.
Key Points
• Mortgage rates in New Mexico are hovering around 6.00%, which is close to the 50-year average.
• Mortgage rates are influenced by economic factors like inflation, unemployment, and the federal funds rate set by the Federal Reserve.
• Higher interest rates mean higher monthly mortgage payments.
• New Mexico offers various mortgage types, including fixed-rate, adjustable-rate, FHA, VA, and USDA loans.
• Jumbo loans are available for home purchases requiring loans greater than $832,750.
Introduction to Mortgage Interest Rates
Whether or not you’re buying your first home, you probably know that mortgage interest rates are not fixed numbers. They’re calculated using a complex combination of factors. These factors can be broadly categorized into two buckets: the state of the economy and the borrower’s financial status.
This comprehensive guide will explain how mortgage rates are set and how borrowers can secure the lowest rates available, so you can close on your new home feeling that you got the best deal possible.
Where Mortgage Rates Come From
The Federal Reserve, also known as the Fed, sets the short-term interest rates that banks use as a benchmark for their lending rates. Although home loan rates aren’t directly tied to Fed rates, they follow the same economic trends. When the Fed’s interest rate is cut, chances are mortgage rates will be too.
The Fed’s decisions regarding interest rates are based on various economic indicators, including inflation, employment, and economic growth. When the economy is strong, the Fed may raise interest rates to prevent overheating and control inflation. Conversely, during economic downturns, the Fed may lower interest rates to stimulate borrowing and boost economic activity. Mortgage rates tend to follow these trends, although they may not move in lockstep with Fed rate changes.
Other factors, such as the overall demand for mortgages, the availability of funds in the mortgage market, and global economic conditions, also play a role in shaping mortgage rates.
How Interest Rates Affect Home Affordability
Mortgage rates have a bigger impact on home affordability than people realize. Even small interest rate changes can put homeownership out of reach for middle-income Americans.
A seemingly small difference in the interest rate can significantly affect the monthly mortgage payment and the total amount paid over the life of the loan. For instance, a $200,000 loan with a 30-year term and a 4% interest rate would result in a monthly payment of $954. Increasing the interest rate by just 1 percentage point to 5% would raise the monthly payment to $1,073, adding an extra $43,774 in interest paid over the life of the loan.
This example illustrates how interest rates can have a substantial impact on housing affordability. For many families, a modest increase in the interest rate can make the difference between qualifying for a mortgage and being priced out of the housing market.
Should Homebuyers Wait for Interest Rates to Drop?
Many first-time homebuyers wonder if they should buy now or wait for interest rates to come down. Predicting the direction of interest rates is notoriously difficult. While it’s possible that rates may decrease in the future, there is no guarantee. Waiting for rates to drop may mean missing out on the opportunity to purchase a home at a favorable price. Additionally, even if rates do decline, there’s no certainty that they will reach a level significantly lower than current rates. Meanwhile, home prices may rise beyond your down payment budget.
Even if rates do drop in the future, homeowners can refinance their mortgage to take advantage. A mortgage refinance involves obtaining a new mortgage with a lower interest rate, which can result in lower monthly payments or the opportunity to pay off the loan faster.
New Mexico Mortgage Rate Trends
Understanding historical mortgage rates can provide valuable insight into where rates are headed. While rates have risen in recent years, they remain well below historical highs.
Looking back at historical mortgage rates in New Mexico, it’s evident that rates have fluctuated over time. In the past 25 years, rates have ranged from 8.06% in 2000 to a low of 3.68% in 2012. (The Federal Housing Finance Authority stopped reporting state figures in 2018.) Currently, rates are hovering around 6.00%, which is close to the 50-year average.
This perspective may provide some reassurance to homebuyers who are concerned about interest rates.
| Year | New Mexico Rate | U.S. Rate |
|---|---|---|
| 2000 | 8.06 | 8.14 |
| 2001 | 6.88 | 7.03 |
| 2002 | 6.49 | 6.62 |
| 2003 | 5.83 | 5.83 |
| 2004 | 5.82 | 5.95 |
| 2005 | 5.94 | 6.00 |
| 2006 | 6.45 | 6.60 |
| 2007 | 6.48 | 6.44 |
| 2008 | 6.08 | 6.09 |
| 2009 | 5.19 | 5.06 |
| 2010 | 4.77 | 4.84 |
| 2011 | 4.59 | 4.66 |
| 2012 | 3.68 | 3.74 |
| 2013 | 3.81 | 3.92 |
| 2014 | 4.23 | 4.24 |
| 2015 | 3.98 | 3.91 |
| 2016 | 3.81 | 3.72 |
| 2017 | 4.17 | 4.03 |
| 2018 | 4.72 | 4.57 |
Historical U.S. Mortgage Rates
For a broader view, let’s examine historical U.S. mortgage rates. Over the past 50 years, mortgage rates have exhibited a wide range, from as high as 18.00% in the 1980s to a low of under 3.00% in 2020 and 2021. The current rate of around 6.00% falls within the historical average.
Factors Affecting Mortgage Rates in New Mexico
Many factors influence mortgage rates in New Mexico and nationwide. Some of these factors are economic, but others are entirely within the homebuyer’s control.
As mentioned earlier, economic factors such as the Federal Reserve’s interest rate decisions, inflation, and unemployment play a significant role in shaping mortgage rates. However, there are also consumer-specific factors that can impact the rates offered to individual borrowers.
Credit score, down payment, income and assets, and the type of mortgage loan are all factors that lenders consider when determining mortgage rates. By improving these factors, borrowers can increase their chances of securing a lower mortgage rate.
Consumer Factors
Ever heard the phrase knowledge is power? Well, here’s a great example. Knowing the consumer-specific factors that influence mortgage rates can make a big difference to your bottom line.
• Credit score: A credit score is a numerical representation of an individual’s credit history and repayment behavior. A higher credit score indicates a lower risk of default, making borrowers more attractive to lenders. As a result, individuals with higher credit scores typically qualify for lower mortgage rates.
• Down payment: A larger down payment reduces the amount of money that needs to be borrowed, which lowers the risk for the lender. As a result, borrowers who can make a larger down payment often receive lower mortgage rates.
• Income and assets: Lenders assess a borrower’s income and assets to determine their ability to repay the loan. A steady income and substantial assets provide assurance to lenders that the borrower can meet their mortgage obligations. Borrowers with strong income and asset profiles may qualify for lower mortgage rates.
• Type of mortgage loan: The type of mortgage loan selected can also impact the interest rate. Adjustable-rate mortgages (ARMs) typically offer lower initial rates compared to fixed-rate mortgages, but the rates can adjust over time. Government-backed loans, such as VA and FHA loans, may have lower rates due to the government’s involvement. Additionally, shorter loan terms generally come with lower rates than longer terms.
Types of Mortgages Available in New Mexico
Homebuyers in New Mexico have access to a variety of mortgage options to suit their financial situations and preferences. These include fixed-rate mortgages, adjustable-rate mortgages, FHA loans, VA loans, and USDA loans.
Conventional loans are not backed by the government and are offered by banks and credit unions. They can be fixed-rate or adjustable-rate.
Fixed-Rate Mortgages
Fixed-rate mortgages maintain the same interest rate throughout the loan, ensuring that the principal and interest payments remain constant.
Fixed-rate mortgages provide stability and predictability in monthly payments. The interest rate is locked in at the time of the loan origination and does not change over the life of the loan. This type of mortgage is ideal for borrowers who prefer a consistent monthly payment and want to avoid the uncertainty of fluctuating interest rates.
Fixed-rate mortgages are typically available in terms of 10, 15, 20, or 30 years. The loan term refers to the duration over which the loan is repaid. A shorter loan term generally comes with a lower interest rate, but the monthly payments will be higher. Conversely, a longer loan term has a higher interest rate but lower monthly payments.
Adjustable-Rate Mortgage (ARM)
Adjustable-rate mortgages (ARMs) initially offer a lower rate than fixed-rate loans. They typically start with a lower interest rate compared to fixed-rate mortgages, which can be beneficial if planning to sell before the fixed period ends.
Adjustable-rate mortgages offer an initial period of lower interest rates, known as the introductory period or teaser rate. This period can range from one to ten years. After the introductory period, the interest rate can adjust periodically.
The lower initial interest rate of ARMs can be attractive to borrowers looking to save money on monthly payments in the short term. However, it’s important to consider the potential for higher interest rates in the future and ensure that you can afford the payments if the rate adjusts upward.
FHA Loan
FHA loans typically have more lenient eligibility requirements than conventional loans. FHA loans are insured by the Federal Housing Administration (FHA), which reduces the risk to lenders and allows for more flexible credit and income requirements compared to conventional loans. FHA loans are particularly beneficial for first-time homebuyers or individuals with less-than-perfect credit.
VA Loans
VA loans are available to veterans, active-duty military members, and some Reserve and National Guard members, and their surviving spouses. VA loans are offered by the U.S. Department of Veterans Affairs (VA). and provide favorable terms, including no down payment requirement, competitive interest rates, and flexible credit guidelines.
One of the significant advantages of VA loans is the absence of a down payment. VA loans allow eligible individuals to purchase a home with no upfront cash investment.
USDA Loans
USDA loans are designed for low-income borrowers looking to purchase a home in a rural area. USDA loans are provided by the U.S. Department of Agriculture (USDA). These loans offer competitive interest rates and do not require a down payment. The USDA’s Rural Development program program aims to promote homeownership and economic development in rural communities.
Jumbo Loans
Conventional mortgage loans, which are not backed by the government, have a maximum loan amount set by the Federal Housing Finance Agency (FHFA). For 2026, the conforming loan limit for a single-family home is $832,750 in New Mexico. Jumbo loans are conventional loans that exceed this limit.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Popular Places to Get a Mortgage in New Mexico
Securing a mortgage often depends on choosing the right location, where home prices, the cost of living, and mortgage terms are favorable.
The cost of living in an area can significantly impact mortgage affordability. The Cost of Living Index (COLI) compares the cost of living in different cities and states to the national average. By considering the COLI, homebuyers can assess whether their income and mortgage payments align with the local cost of living.
Recommended: The Cost of Living in the U.S.
Least Expensive Locations
When considering mortgage rates and affordability, it’s helpful to explore areas with lower housing costs. Here are some less expensive cities in New Mexico and their average home value:
• Deming $136,184
• Portales $133,130
• Roswell $153,616
• Clovis $159,492
• Grants $142,140
Most Expensive Locations
On the other hand, some cities in New Mexico have higher housing costs and may require a larger budget for a mortgage. Even if you find a dream house within your budget, the average monthly expenses for one person are likely higher in these areas.
Here are several pricey cities and their average home value:
• Santa Fe $581,985
• Taos $435,954
• Albuquerque $331,357
Recommended: Best Affordable Places in the U.S.
Tips for Securing a Competitive Mortgage Rate in New Mexico
A competitive mortgage rate is crucial for saving money over the life of a loan. Even half a percentage point can translate to many thousands of dollars.
To illustrate, consider a $200,000 loan with a 30-year term. A difference of just 0.5% in the interest rate, from 4% to 4.5%, would result in a monthly payment difference of $60. Over the life of the loan, this would amount to a difference in total interest paid of $21,074.
Here are two things you can do to ensure you get a better rate.
Compare Interest Rates and Fees
Take the time to compare interest rates and fees from multiple lenders. Be sure to ask about any upfront costs or closing fees associated with the loan.
Shopping around for mortgage rates is essential to ensure you’re getting the best possible deal. Obtain quotes from several lenders and compare not only the interest rates but also any associated fees, such as origination fees, appraisal fees, and closing costs.
In addition to the interest rate, it’s important to inquire about any upfront costs or closing fees associated with the mortgage. These fees vary among lenders and can impact the overall cost of the loan.
Get Preapproved
Getting preapproved for a mortgage strengthens your position as a buyer and allows you to move quickly when you find the right property.
Obtaining preapproval for a mortgage demonstrates your seriousness as a buyer and provides you with a better understanding of your borrowing power. It also allows you to move swiftly when you find a suitable property, as you’ll already have a good idea of the loan amount you’re eligible for. On the other hand, it does take time upfront: The mortgage preapproval process can last up to ten days.
If you’re concerned about rising interest rates, you can lock in your rate for a certain period, typically ranging from 30 to 90 days. This ensures that the interest rate you’re offered at the time of preapproval remains the same when you’re ready to close on the loan. However, locking in the rate may come with a fee.
New Mexico Mortgage Resources
The New Mexico Mortgage Finance Authority (MFA) offers various resources and programs to assist homebuyers, particularly first-time buyers and those with limited financial resources.
First-Time Homebuyer Programs
New Mexico offers several programs specifically designed to assist first-time homebuyers in purchasing their first home. Remember, to qualify as a first-time homebuyer only requires that you not own a primary residence within the last three years.
• The MFA FirstHome Loan offers a conventional or government-backed mortgage to eligible homebuyers with a credit score of 620 or higher.
• The MFA HomeForward Program
Down Payment Assistance
• The MFA FirstDown Loan program provides a fixed-rate second mortgage for down payment and closing costs; FirstDown must be combined with the FirstHome program, above.
• The MFA FirstDown Plus Loan program provides a fixed amount of $15,000 in the form of a 10-year, no-payment, non-amortizing loan with a 0% interest rate, for use as a down payment. The loan will be forgiven if the borrower continually occupies the home for a 10-year period.
Tools & Calculators
Various online tools and calculators can help homebuyers estimate mortgage payments, compare loan options, and determine affordability.
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.
Refinancing Options in New Mexico
The FHA Streamline Refinance program enables FHA loan holders to refinance their existing FHA loan with a new FHA loan at a lower interest rate. This can be particularly beneficial if current mortgage rates are lower than the rate on the existing loan.
VA Interest-Rate Reduction Refinance Loan (IRRRL) allows eligible veterans and active-duty military members to refinance their existing VA loan to obtain a lower interest rate. This can result in reduced monthly payments and potential savings over the life of the loan.
Closing Costs, Taxes, and Fees in New Mexico
Closing costs associated with purchasing a home in New Mexico typically range between 2% and 5% of the purchase price. These costs may include loan origination fees, appraisal fees, title insurance, and other administrative charges.
The specific closing costs can vary depending on the property value and location. It’s important to factor these costs into the overall budget when planning for homeownership.
The Takeaway
New Mexico’s mortgage landscape offers a range of options for homebuyers. By staying informed about current mortgage rates, exploring assistance programs, and carefully considering refinancing options, individuals can make strategic decisions that align with their financial goals and achieve successful homeownership in the Land of Enchantment.
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
Will mortgage rates drop in New Mexico?
Predicting future mortgage rate movements is challenging. Economic conditions, inflation, and housing market dynamics all influence mortgage rates.
Will mortgage rates ever go back to normal?
“Normal” mortgage rates aren’t really a thing. Mortgage rates have always fluctuated, and there is no guarantee that they will return to any specific level. But they’re currently about at the historical average.
Will New Mexico home prices ever drop?
Real estate market trends are influenced by various factors, including supply and demand, economic conditions, and population growth. Predicting future home price movements is complex, especially across an entire state. Right now, home prices in some areas of New Mexico are dropping, while they’re rising in others.
Is it a good time to buy a house in New Mexico?
Determining the right time to buy a house involves personal financial considerations, housing market conditions, and individual preferences. There is no one-size-fits-all answer, and what is a good time for one person may not be for another.
How to lock in a mortgage rate?
To lock in a mortgage rate, you can obtain a rate lock from a lender.
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.
†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.
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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-Q324-086
More home loan resources.
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First-Time Homebuyer Guide
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First-Time Homebuyer Programs and Loans
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Mortgage Preapproval Process
Preparing to buy a house? Call us for a complimentary mortgage consultation.
$50 an hour salary converter
$50 an Hour Is How Much a Year?
If you’re earning $50 an hour, you’d be making $104,000 a year before taxes. Use this calculator to easily convert your hourly wage into weekly, monthly, and yearly amounts, helping you get a clearer picture of your total earnings.
*The information provided by this calculator is for illustrative purposes only. These figures assume full-time employment and do not include deductions like taxes.
FAQ
How much is $50 an hour weekly, monthly, and annually before taxes?
Before taxes, if you make $50 an hour and work a full-time schedule of 40 hours per week, your weekly pay would be $2,000. In a month, that totals around $8,667. Over the course of a year, you’d be earning about $104,000, assuming you work all 52 weeks without any unpaid time off.
What is the annual take-home pay for someone earning $50 an hour after taxes?
Your take-home pay will depend on things like taxes and deductions. On average, after federal taxes and other common deductions, you could expect to take home between $75,000 and $85,000 each year. The exact amount will vary based on where you live and your financial situation.
How does the annual salary of $50 an hour compare to the average salary in the U.S.?
At $50 an hour, which amounts to $104,000 per year, you’re earning well above both the average U.S. salary of $63,795 and the median salary of $59,384. This puts you in the higher income bracket compared to most workers in the U.S.
How does $50 an hour compare to minimum wage?
At $50 an hour, you’re making much more than the federal minimum wage of $7.25 an hour. Even in states with higher minimum wages that range from $8 to $15 an hour, $50 an hour is significantly above those levels.
Helpful salary resources:
Other popular hourly conversions
Your hard-earned cash deserves better banking.
When you bank with SoFi, you’ll get up to 3.30% APY1, pay no account fees2,
and earn up to $300 with direct deposit†.
SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
1
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at http://www.sofi.com/legal/banking-rate-sheet.
SoFi Bank assesses Eligible Direct Deposit or Qualifying Deposits based on a rolling 31-calendar day period and may request additional information for verification of eligibility. A rolling 31-calendar day period means that each time you receive an Eligible Direct Deposit or $5,000 in Qualifying Deposits, a new 31-day period begins, during which you will earn the interest rates and APYs for account holders with Eligible Direct Deposit or Qualifying Deposits. If you receive another Eligible Direct Deposit or $5,000 in Qualifying Deposits during the current 31-day period, the period will reset, and a new 31-day period will begin from the date the criteria are met. You can view the end date of your current 31-day period, based on your most recent deposit activity, by visiting the APY details page within your account.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Eligible Direct Deposit or Qualifying Deposit activity before adjusting interest rates and APYs. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits within a rolling 31-day period, or did not pay the SoFi Plus Subscription Fee every 30 days, and, if applicable, the grace period, then you will begin earning the interest rates and APYs earned by members without Eligible Direct Deposit, $5,000 in Qualifying Deposits or SoFi Plus Paid Subscription.
As long as you receive an Eligible Direct Deposit or $5,000 in Qualifying Deposits every 31 calendar days, or pay the SoFi Plus Subscription Fee every 30 calendar days, you will continue earning the interest rates and APYs earned by account holders with Eligible Direct Deposit, $5,000 in Qualifying Deposits or SoFi Plus Paid Subscription. See additional details at http://www.sofi.com/legal/banking-rate-sheet
2 No Account Fees
We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
†
Who is eligible for a Direct Deposit Bonus?
How do I earn the Direct Deposit Bonus?
3. You will receive the bonus amount in your SoFi Checking account within 7 business days of completing all requirements listed above. You are only eligible to receive one bonus amount. You must have an open SoFi Checking account in good standing at the time of the bonus payment.
What is an Eligible Direct Deposit?
Not Eligible Deposits that are not from an employer, payroll or benefits provider or government agency and deposits that are non-recurring in nature are not eligible. Examples of deposits that are not eligible include check deposits, peer-to-peer transfers (e.g., transfers from Zelle, PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), bank ACH funds transfers, wire transfers from external accounts, and IRS tax refunds. SoFi Bank shall, in its sole discretion, assess your Eligible Direct Deposit activity to determine eligibility and may require additional documentation to complete this verification.
Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your initial Eligible Direct Deposit. After SoFi validates the details of your Eligible Direct Deposit, your Direct Deposit Bonus will be based on the date we received your initial Eligible Direct Deposit.
What else is important to know?
New and existing SoFi members who have never set up direct deposit with SoFi are eligible for the Direct Deposit Bonus. Bonuses are limited to one bonus per SoFi member. In the case of a joint account, direct deposit activity will only be counted towards the primary account holder’s eligibility for the bonus (the primary account holder is the member who opened the joint account first).
1. Set up your first Eligible Direct Deposit. SoFi must receive it on or before 12/31/26.
2. Once SoFi receives and recognizes your first Eligible Direct Deposit, we will add up the Total Eligible Direct Deposits received over the next 25 calendar days. This total will determine the bonus amount.
Total Eligible Direct Deposit
Bonus Amount
Timing
$1.00 - $999.99
$0
To determine your bonus amount, SoFi will add up all your Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit.
$1,000.00 - $4,999.99
$50
$5,000.00 or more
$300
Eligible: Recurring ACH deposit of regular income to your SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by your employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”)
•This promotion is available between 12/7/2023 at 12:01AM ET and 12/31/2026 at 11:59PM ET. SoFi reserves the right to modify or end the promotion at any time without notice. The terms of this promotion take precedence over the terms of any prior Direct Deposit promotion.
•SoFi reserves the right to exclude any members from participating in this promotion for any reason, such as suspected fraud, misuse, or suspicious activity.
•SoFi members with Eligible Direct Deposit activity can earn 3.30% annual percentage yield (APY) on savings balances. Interest rates are variable and subject to change at any time. These rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at http://www.sofi.com/legal/banking-rate-sheet.
•Bonuses are considered miscellaneous income, and may be reportable to the IRS on Form 1099-MISC (or Form 1042-S, if applicable). SoFi is required to do this reporting in compliance with the applicable federal and state reporting requirements. Recipient is responsible for any applicable federal, state or local taxes associated with receiving the bonus offer; consult with your tax advisor to determine applicable tax consequences.
•This promotion is offered by SoFi Bank, N.A, Member FDIC (“SoFi”)
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.
$26 an hour salary converter
$26 an Hour Is How Much a Year?
If you’re making $26 an hour, you would be earning a $54,080 yearly salary before taxes. Use this calculator to convert your hourly wage into yearly, monthly, and weekly amounts, helping you understand your total earnings.
*The information provided by this calculator is for illustrative purposes only. These figures assume full-time employment and do not include deductions like taxes.
FAQ
How much is $26 an hour weekly, monthly, and annually before taxes?
Before taxes, if you earn $26 an hour and work 40 hours a week, your weekly pay would be $1,040. Over a month, that comes to about $4,507. Annually, this adds up to around $54,080, assuming you work all 52 weeks with no unpaid time off.
What is the annual take-home pay for someone earning $26 an hour after taxes?
Your take-home pay will depend on things like your tax bracket, state taxes, and deductions. On average, after federal taxes and common deductions, you could expect to take home between $40,000 and $45,000 a year. The exact amount will vary depending on your location and financial situation.
How does the annual salary of $26 an hour compare to the average salary in the U.S.?
With an annual salary of $54,080 (based on $26 an hour), you’re earning less than the U.S. average salary of $63,795 and the median salary of $59,384. This puts you in the middle-income range for U.S. workers, but your salary’s value will depend on where you live and your industry.
How does $26 an hour compare to minimum wage?
At $26 an hour, you’re making much more than the federal minimum wage of $7.25 an hour. Even in states with higher minimum wages ranging from $8 to $15 an hour, $26 is still significantly higher.
Helpful salary resources:
Other popular hourly conversions
Your hard-earned cash deserves better banking.
When you bank with SoFi, you’ll get up to 3.30% APY1, pay no account fees2,
and earn up to $300 with direct deposit†.
SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
1
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at http://www.sofi.com/legal/banking-rate-sheet.
SoFi Bank assesses Eligible Direct Deposit or Qualifying Deposits based on a rolling 31-calendar day period and may request additional information for verification of eligibility. A rolling 31-calendar day period means that each time you receive an Eligible Direct Deposit or $5,000 in Qualifying Deposits, a new 31-day period begins, during which you will earn the interest rates and APYs for account holders with Eligible Direct Deposit or Qualifying Deposits. If you receive another Eligible Direct Deposit or $5,000 in Qualifying Deposits during the current 31-day period, the period will reset, and a new 31-day period will begin from the date the criteria are met. You can view the end date of your current 31-day period, based on your most recent deposit activity, by visiting the APY details page within your account.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Eligible Direct Deposit or Qualifying Deposit activity before adjusting interest rates and APYs. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits within a rolling 31-day period, or did not pay the SoFi Plus Subscription Fee every 30 days, and, if applicable, the grace period, then you will begin earning the interest rates and APYs earned by members without Eligible Direct Deposit, $5,000 in Qualifying Deposits or SoFi Plus Paid Subscription.
As long as you receive an Eligible Direct Deposit or $5,000 in Qualifying Deposits every 31 calendar days, or pay the SoFi Plus Subscription Fee every 30 calendar days, you will continue earning the interest rates and APYs earned by account holders with Eligible Direct Deposit, $5,000 in Qualifying Deposits or SoFi Plus Paid Subscription. See additional details at http://www.sofi.com/legal/banking-rate-sheet
2 No Account Fees
We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
†
Who is eligible for a Direct Deposit Bonus?
How do I earn the Direct Deposit Bonus?
3. You will receive the bonus amount in your SoFi Checking account within 7 business days of completing all requirements listed above. You are only eligible to receive one bonus amount. You must have an open SoFi Checking account in good standing at the time of the bonus payment.
What is an Eligible Direct Deposit?
Not Eligible Deposits that are not from an employer, payroll or benefits provider or government agency and deposits that are non-recurring in nature are not eligible. Examples of deposits that are not eligible include check deposits, peer-to-peer transfers (e.g., transfers from Zelle, PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), bank ACH funds transfers, wire transfers from external accounts, and IRS tax refunds. SoFi Bank shall, in its sole discretion, assess your Eligible Direct Deposit activity to determine eligibility and may require additional documentation to complete this verification.
Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your initial Eligible Direct Deposit. After SoFi validates the details of your Eligible Direct Deposit, your Direct Deposit Bonus will be based on the date we received your initial Eligible Direct Deposit.
What else is important to know?
New and existing SoFi members who have never set up direct deposit with SoFi are eligible for the Direct Deposit Bonus. Bonuses are limited to one bonus per SoFi member. In the case of a joint account, direct deposit activity will only be counted towards the primary account holder’s eligibility for the bonus (the primary account holder is the member who opened the joint account first).
1. Set up your first Eligible Direct Deposit. SoFi must receive it on or before 12/31/26.
2. Once SoFi receives and recognizes your first Eligible Direct Deposit, we will add up the Total Eligible Direct Deposits received over the next 25 calendar days. This total will determine the bonus amount.
Total Eligible Direct Deposit
Bonus Amount
Timing
$1.00 - $999.99
$0
To determine your bonus amount, SoFi will add up all your Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit.
$1,000.00 - $4,999.99
$50
$5,000.00 or more
$300
Eligible: Recurring ACH deposit of regular income to your SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by your employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”)
•This promotion is available between 12/7/2023 at 12:01AM ET and 12/31/2026 at 11:59PM ET. SoFi reserves the right to modify or end the promotion at any time without notice. The terms of this promotion take precedence over the terms of any prior Direct Deposit promotion.
•SoFi reserves the right to exclude any members from participating in this promotion for any reason, such as suspected fraud, misuse, or suspicious activity.
•SoFi members with Eligible Direct Deposit activity can earn 3.30% annual percentage yield (APY) on savings balances. Interest rates are variable and subject to change at any time. These rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at http://www.sofi.com/legal/banking-rate-sheet.
•Bonuses are considered miscellaneous income, and may be reportable to the IRS on Form 1099-MISC (or Form 1042-S, if applicable). SoFi is required to do this reporting in compliance with the applicable federal and state reporting requirements. Recipient is responsible for any applicable federal, state or local taxes associated with receiving the bonus offer; consult with your tax advisor to determine applicable tax consequences.
•This promotion is offered by SoFi Bank, N.A, Member FDIC (“SoFi”)
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.
