Current Home Equity Loan Rates in Idaho Today
IDAHO HOME EQUITY LOAN RATES TODAY
Current home equity loan rates in
Idaho.
Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Compare home equity loan rates in Idaho.
Key Points
• Home equity loan rates in Idaho vary based on credit score, loan-to-value ratio, and lender policies.
• Home equity loans offer a lump-sum payment repaid with regular installments, typically with fixed interest rates and repayment terms ranging from five to 30 years.
• Home equity loan interest rates are influenced by the prime rate and various economic factors.
• Home value stability, lender policies, and property location also influence Idaho home equity loan rates.
• To qualify for the lowest rates, borrowers should establish a robust credit score, manage their debt-to-income ratio, obtain adequate property insurance, and maintain sufficient home equity.
Introduction to Home Equity Loan Rates
This guide will help you become knowledgeable about Idaho home equity loan rates, which can vary depending on your financial situation, the lender you’re working with, and the country’s larger financial environment. We’ll walk you through the factors that affect rates, help you understand the different types of home equity loans, and provide advice for getting the best deal on your loan. We’ll also cover what is a home equity line of credit (HELOC) and how it’s different from a home equity loan.
How Do Home Equity Loans Work?
Let’s start with the basics: What is a home equity loan, exactly? With a home equity loan, you leverage your home’s value to secure a loan with a lower interest rate than a personal loan. So if you are still paying off your mortgage, a home equity loan is a second mortgage. With a fixed interest rate and a repayment term that can be anywhere from 5 to 30 years, it’s a flexible and affordable option.
To qualify, homeowners typically need to have at least 20% equity in their property. Not sure what that means? Your equity is the difference between what you owe on your mortgage and what your home is currently worth.
Where Do Home Equity Loan Interest Rates Come From?
Home equity loan interest rates are a product of larger economic factors, including the prime rate. This is the rate at which banks lend to their most creditworthy clients. Federal Reserve interest rate policies play a role in influencing banks’ prime rates. So keeping up with the news on shifts in Fed rates may give you a sense of how home equity loan rates might fluctuate.
How Interest Rates Impact Home Equity Loan Affordability
The interest rate you secure can have a big impact on your monthly payments and the amount you pay over the life of the loan. For example, a 20-year home equity loan of $50,000 with an interest rate of 5.00% would have a monthly payment of approximately $330. But with a 1% higher rate, the monthly payment would be about $358. That’s an extra $28 per month for the same loan. Over the life of the loan, that 1% higher rate would cost you an additional $6,777.
Home Equity Loan Rate Trends
The prime interest rate is a key number to watch, as it can be a harbinger of where Idaho home equity loan rates are headed. Since 2018, the average prime rate has seen some ups and downs, hitting a low of 3.25% in 2020, as the chart below shows. The graphic shows the fluctuations of the prime rate over a much longer period of more than 50 years.
Historical Prime Interest Rates
| Date | Prime Rate |
|---|---|
| 9/19/2024 | 8.00% |
| 7/27/2023 | 8.50% |
| 5/4/2023 | 8.25% |
| 3/23/2023 | 8.00% |
| 2/2/2023 | 7.75% |
| 12/15/2022 | 7.50% |
| 11/3/2022 | 7.00% |
| 9/22/2022 | 6.25% |
| 7/28/2022 | 5.50% |
| 6/16/2022 | 4.75% |
| 5/5/2022 | 4.00% |
| 3/17/2022 | 3.50% |
| 3/16/2020 | 3.25% |
| 3/4/2020 | 4.25% |
| 10/31/2019 | 4.75% |
| 9/19/2019 | 5.00% |
| 8/1/2019 | 5.25% |
| 12/20/2018 | 5.50% |
| 9/27/2018 | 5.25% |
Source: St. Louis Fed
Source: TradingView.com
Factors Influencing Home Equity Loan Rates
In the state of Idaho, several factors come into play when determining the rates for home equity loans. Many of these were likely also important when you took out your first home loan. Lenders take a close look at these factors to understand the risk associated with your application and to set an interest rate that is fair and responsible for both you and the lender.
Credit Score
Your history of managing debt and making timely payments is a significant factor in the interest rate you’ll be offered. Generally, a credit score of 680 or higher is preferred by lenders for home equity loans, with many looking for scores of 700 or more.
Home Value
Lenders will typically use an independent appraisal to determine the market value of your home, which will then be used to determine the maximum amount you can borrow. This process will also help to establish how much equity you have in the home. The appraisal report is an important part of the lending process and is used to make sure that the loan amount is appropriate and that the lender is making a responsible loan.
Loan-to-Value (LTV) Ratio
Once you know the home’s value, you and your lender can compute the LTV ratio. It’s calculated by dividing the loan amount by the property’s appraised value. If you are still paying off a first mortgage, you’ll add what you owe on that loan to the amount you’d like to borrow and then divide by the home value for a combined LTV. Most lenders cap their LTV at 85%.
Home Value Stability
The ebb and flow of home values have a direct impact on the equity you can tap into. When the market is on the upswing, lenders are more open to green-lighting heftier loans, as the increased value of your property acts as a safety net. But when the market takes a dip, lenders might tighten their belts, which could mean more stringent requirements and smaller loan amounts.
Property Location
Living in areas that are more susceptible to damage from wildfires, flooding, or other climate extremes can sometimes mean higher interest rates. Lenders might see these areas as riskier bets. If you live in an area like this, you might have to meet additional requirements to get a home equity loan in Idaho, and you could have a higher interest rate.
Lender Policies
Each lender has its own policies, and these can have an impact on the interest rate you’re offered or the fees you’ll pay. To make sure you’re getting the best deal, it’s a good idea to shop around and compare interest rates, fees, and closing costs from a few different lenders.
How to Qualify for the Lowest Rates
There are a few steps you can take to ensure you get the best interest rates on an Idaho home equity loan. Here’s your to-do list:
Build a Strong Credit Score
It’s a well-known fact that a higher credit score often translates to better home equity loan rates. Tending to your credit score means paying your bills on time, checking your credit reports now and then to ensure there are no errors (and fixing any that you do find), and trying not to get to the max on every credit line you have. These habits will help you build credit over time in Idaho.
Manage Debt-to-Income Ratio
Your debt-to-income (DTI) ratio, which compares your monthly income to your monthly debt obligations, is a key factor in determining your loan eligibility. Lenders usually want to see a DTI ratio below 36% when considering you for a home equity loan, though some will go as high as 50%. To compute your DTI ratio, add up all your monthly debts (student loan, car loan, etc), divide by your gross monthly income, and multiply that result by 100.
Obtain Adequate Property Insurance
In the world of home equity loans in Idaho, having enough property insurance is a must, especially in areas that are prone to flooding. This insurance requirement is in place to protect both you and your lender, so you can both have peace of mind and financial protection in the event of a disaster.
Maintain Sufficient Home Equity
You’ll need to keep at least 20% equity in your home to be eligible for a home equity loan. This is a safety net for both you and the lender, ensuring you’re not overextending yourself and that the lender’s investment is protected.
Fixed vs. Variable Interest Rates
Home equity loans in Idaho usually come with fixed interest rates. This means you’ll have the same interest rate and monthly payment for the life of the loan. While this can provide stability and predictability, it can also mean that you’ll start out with a higher interest rate than you would with a variable-rate loan.
Tools & Calculators
Taking advantage of online tools and calculators can help you estimate your home equity loan payments. These are a few of our favorite resources, which can help with both a home equity loan and a home equity line of credit (HELOC).
Run the numbers on your home equity loan.
-
Home Equity Loan Calculator
Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
-
HELOC Payment Calculator
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
-
HELOC Interest Only Calculator
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay .
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.
Closing Costs and Fees
Closing costs for a home equity loan typically range from 2% to 5% of the loan amount. The charges may include the cost of the appraisal, credit report, document preparation, and title insurance. Every lender has its own fee structure, so it’s important to shop around and compare multiple lenders, as fees can vary.
Tax Deductibility of Home Equity Loan Interest
The interest you pay on a home equity loan or HELOC can be tax-deductible if you use the funds to significantly improve your home. Those who file jointly can deduct interest on the first $750,000 they borrow, while for single filers the limit is $375,000. Remember, you’ll need to itemize your deductions to claim this benefit so you may need to work with a tax preparer.
Alternatives to Home Equity Loans
When you’re looking at other ways to get equity out of your home in Idaho, it’s crucial to understand the differences between a HELOC, an HECM (home equity conversion mortgage), and a cash-out refinance. Taking the time to explore these options with a prospective lender can help you make an informed decision that will align with your financial goals.
Home Equity Line of Credit (HELOC)
A home equity line of credit (HELOC) is akin to a credit card (but with notably lower interest rates). It grants you, the homeowner, the flexibility to borrow as needed up to a predetermined credit limit, paying interest only on the amount withdrawn. The variable interest rates on HELOCs are subject to market changes, and this could mean increased costs if rates take an upward turn. Here’s a look at HELOCs vs. home equity loans:
| HELOC | Home Equity Loan | |
|---|---|---|
| Type | Revolving line of credit | Installment loan |
| Interest Rate | Usually variable-rate | Usually fixed-rate |
| Repayment | Repay only what you borrow; you may have the option to make interest-only payments during the draw period. | Starts immediately at a set monthly payment |
| Disbursement | Charge only the amount you need. | Lump sum |
Home Equity Conversion Mortgage (HECM)
For those 62 and over, the government-insured HECM program offers a lifeline. It allows you to receive payments based on your home’s value, either as a lump sum, regular disbursements, or a line of credit. You only pay the loan back when you leave your home. Unlike traditional home equity loans or HELOCs, HECMs don’t require monthly payments, but they do come with higher upfront costs and a longer application process. (While SoFi does not offer HECMs at this time, we do offer home equity loans and HELOCs.)
Cash-Out Refinance
A cash-out refinance is a special type og mortgage refinance that’s like hitting two birds with one stone. You get a new mortgage to settle the old one, and you can pocket some cash to use however you wish. As noted above, most lenders will let you borrow up to 85% of your home’s value. As you consider a cash-out refinance vs. a home equity line of credit, one thing to think about is current interest rates. If the rates now are significantly higher than your current mortgage rate, it might not make sense to refinance, and a HELOC or home equity loan could be a better option.
The Takeaway
Knowing the most competitive home equity rates in Idaho and the lenders that offer them can help you make a wise decision. By comparing rates, using financial tools and calculators, and exploring all your borrowing options, you can find the home equity product that best meets your needs and goals.
Unlock your home’s value with a home equity loan from SoFi.
FAQ
What’s the monthly payment on a $50,000 home equity loan?
If you borrow $50,000 with a home equity loan and pay it back over 10 years, the monthly payments could range from $530 to $607, depending on your interest rate (this range is from 5.00% to 8.00%). But remember: The two main factors that will affect your payments are the interest rate and the loan term, so changes in either of these will change your payment.
What is the monthly payment on a $100,000 HELOC?
If you’ve maxed out your HELOC and are paying it back over 20 years at a rate of 7.00%, you can expect to pay $775 per month. Of course this is just an example. You can use a HELOC repayment calculator to compute the number for your exact interest rate.
What is the payment on a $25,000 home equity loan?
Borrow $25,000 with an interest rate of 8.00% and a term of 5 years, and you’re looking at a monthly payment of $507. Change either the interest rate or the term (or both) and your payment amounts will change as well.
How about a $30,000 home equity loan? What would that cost?
The monthly payment on a $30,000 home equity loan will depend on the interest rate and the loan term, but a 10-year term and 8.00% interest rate would mean a monthly payment of $364.
What might disqualify you from getting a home equity loan?
There are a number of factors that can prevent you from getting a home equity loan. These can include having a low credit score, having a high debt-to-income ratio, lacking 20% equity in your home, or not having enough insurance on your property.
What are the benefits of a HELOC?
HELOCs have a variety of benefits, including flexible borrowing, lower interest rates than many credit cards, and the ability to pay interest on only the amount of the credit line that you’ve used. These benefits make HELOCs a great financial tool for homeowners who need a flexible and cost-effective credit solution that fits their unique financial needs and long-term goals.
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.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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.
This content is provided for informational and educational purposes only and should not be construed as financial advice.
SOHL-Q424-072
More home equity resources.
-
What is a Home Equity Line of Credit
-
Different Types of Home Equity Loans
-
HELOC vs Home Equity Loan: How They Compare
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Inflation Has Cooled, But Will Prices Ever Come Back Down?
If grocery shopping still feels like a punch to the gut, you’re not alone.
Even though inflation rates have slowed dramatically since 2022, it can be hard to tell. Prices are still going up on everything from food and clothing to rent and cars, and many of us are having a hard time accepting this new reality.
But will we ever see the prices we’d gotten used to before the pandemic?
Probably not — at least in most cases. Historically, prices generally rise, albeit a lot more slowly than they have recently. So when you hear that U.S. inflation is cooling, it doesn’t mean that prices are dropping, it means they’re not going up as quickly as before. You might think of it like driving a car. You can go at a faster speed or a slower speed, but you’re still moving forward.
Now, it’s worth noting that we’re talking about the Consumer Price Index (CPI) here, which is an overall measure of our day-to-day living expenses.
The prices of some individual items have in fact dipped back down, though they are often still higher than they were before COVID-19. The average price for a gallon of milk, for instance, reached $4.22 in 2022, but has since fallen to about $4.04 (as of October.) Not as nice as the $3.20 we enjoyed back in 2020, but a tad better.
The CPI has basically been on an upward climb for decades (check out this chart,) though it’s dipped briefly a few times, usually during recessions.
The sticker shock we’re grappling with now is a symptom of an abnormally fast increase: The inflation rate — which measures how much the index rises over any 12-month period — got as high as 9.1% in 2022 after bobbing between 1% and 3% for most of the 2010s. Although it’s back to a more normal range, the index is still up over 20% since before the pandemic. Ouchy.
What Americans are experiencing now is disinflation, which is a slowdown in inflation. The Federal Reserve says some amount of inflation — right around 2% — keeps the economy strong. So even if it sounds appealing to a population reeling from dramatically higher prices, the goal is actually to avoid deflation, which is a sustained drop in prices. (If people think prices are falling, they may wait to buy things, and that can lead to higher unemployment and lower incomes).
So what? It may be frustrating, but prices aren’t going down. Since you can’t control inflation, focus on things you can control, like making a budget, managing your debt, and investing for your future.
Related Reading
Why Donald Trump’s Promise to ‘Defeat Inflation’ Is Harder Than It Sounds (Wall Street Journal video)
The Problem Isn’t Inflation. It’s Prices. (Vox)
Inflation Dictionary: Your Guide to the Jargon (The Balance)
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
OTM20241211SW
Read more
Why Stock Indexes Matter to Your Investments
When investors talk about how the stock market is doing, they’re often referring to one of the benchmark stock indexes. You have probably heard of some of the most well-known ones, such as the Dow Jones Industrial Average, which has been around since 1896, or the S&P 500, which is the broadest measure of the U.S. stock market. You may have even heard that both have risen to record highs this year or that chip maker nvidia bumped Intel from the Dow, ending the tech giant’s 25-year run in the index by better leveraging the artificial intelligence boom.
But what exactly are stock indexes and how do investors use them? We’re getting into it.
Stock Indexes Versus the Economy
Stock indexes track the combined performance of a specific group of stocks. They’re designed to be representative of a certain section of the market and can give investors a sense of how stocks are broadly responding to economic data, changes in regulations and trade policies, or the political climate.
But no, the stock market and the economy aren’t the same, in case you were wondering. They are interconnected, given that the economy is a measure of things that are made, bought, and sold in a given region, and the stock market reflects a critical aspect of the companies that do the making, buying and selling. But they can diverge in noticeable ways. For example, even when the economy is doing well, investor worries about a slowdown in the future can pull stock prices lower.
Two Key Indexes to Remember
One of the most cited indexes is the Dow, which measures the performance of 30 large, publicly traded U.S. companies. It’s measured in points, so you’ll often hear how many points the Dow went up or down in a given day or week. By tracking how these businesses are faring, market watchers may gauge (and infer) how the stock market is doing as a whole. The Dow is a price-weighted average, meaning stocks with a higher share price can influence the index more. The highest-weighted Dow stocks were Wall Street bank Goldman Sachs, insurer UnitedHealth Group, and retailer Home Depot as of December 6, 2024.
The other very prominent stock index is the S&P 500, which tracks a much bigger chunk of the market by following 500 leading, publicly trading U.S. companies. The S&P 500 is weighted by market value rather than share price. Even though all sectors are represented, big tech reigns the index, with Apple, Meta, Google-parent Alphabet, Microsoft, and NVIDIA among the top 10 biggest constituents.
While the Dow is often the most cited index, the S&P 500 can provide a broader, more diverse view of overall market health.
And there are a multitude of other stock indexes tracking different parts of global financial markets. In the U.S., the Nasdaq Composite Index, which focuses on tech stocks, and the Russell 2000 Index, which tracks smaller companies, are also commonly cited.
How Can Stock Indexes Inform Your Investments?
Indexes can help investors understand the overall market sentiment, but they can also offer a point of comparison. For instance, if an investor wants to understand how a specific stock or investment is faring versus the overall market, they might compare it to the S&P 500’s long-term return of roughly 10% (or 6-7% when adjusted for inflation), according to historical data.
You can also base your investments on indexes through investment funds, such as exchange-traded funds (ETFs). These funds allow you to invest in all the stocks in an index rather than purchasing individual securities. If you’re saving for the long-term, such as for your retirement, using average historical market returns can also help you project how much your investments could potentially grow over time.
image credit: Bernie Pesko
photocredit: iStock/Prostock-Studio
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
OTM2024121101
Read moreRefinance Student Loan – LCM 122024
Refinance your student loans and believe in life after debt.
✓ Competitive fixed rates for bigger savings.2
✓ No fees required. No origination fees, pre-payment or late fees.
✓ Lower your monthly payment with flexible terms that fit your budget.* You may pay more interest over the life of the loan if you refinance with an extended term.
See your rate in 2 minutes with no commitment.
Received a mailer from
us?
Enter confirmation #
Why refinance your student loans with SoFi?
-
You could save more over time.
A competitive fixed or variable student loan refinance rate could help you save thousands.
-
Pay off your loan sooner.
A shorter term can help you pay off your loan faster. Plus, you could receive a special rate discount with autopay.3
-
Simplify your debt.
Consolidate all your student loans into one easy payment.
-
Free up your finances.
Lower your monthly payments and put more money toward other goals, like buying a home and saving for retirement. Just remember: you may pay more interest over the life of your loan.
}
headingText=”Calculate your savings.”
imgAlt=”Student loans calculator illustration”
imgSrc=”https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/pl-calculator.png”
/>
The Student Debt Guide is here.
It includes all the information you’ll need to tackle your student loan payments and get to life after debt.
Check it out
{/* Horizon */}
steps={[
{
description: ‘It only takes two minutes to explore your options—with no effect to your credit score.†’,
img: {
alt: ‘How student loan refinancing works, step 1’,
src: ‘https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SLR22-610581_SLR-Product-Page-Redesign_MAY2023_Phone-1_Desktop%402x.png’,
srcSet: ‘https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SLR22-610581_SLR-Product-Page-Redesign_MAY2023_Phone-1_Mobile%402x.png 320w, https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SLR22-610581_SLR-Product-Page-Redesign_MAY2023_Phone-1_Desktop%402x.png 846w’
},
title: ‘View your rate.’
},
{
description: ‘Find a term and monthly payment that works for you—and see how much you’ll save.’,
img: {
alt: ‘How student loan refinancing works, step 2’,
src: ‘https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SLR22-610581_SLR-Product-Page-Redesign_MAY2023_Phone-2_Desktop%402x.png’,
srcSet: ‘https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SLR22-610581_SLR-Product-Page-Redesign_MAY2023_Phone-2_Mobile%402x.png 320w, https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SLR22-610581_SLR-Product-Page-Redesign_MAY2023_Phone-2_Desktop%402x.png 846w’
},
title: ‘Select your terms.’
},
{
description: ‘Finish filling out your info online. This step will include a hard credit pull.’,
img: {
alt: ‘How student loan refinancing works, step 3’,
src: ‘https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SLR22-610581_SLR-Product-Page-Redesign_MAY2023_Phone-3_Desktop%402x.png’,
srcSet: ‘https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SLR22-610581_SLR-Product-Page-Redesign_MAY2023_Phone-3_Mobile%402x.png 320w, https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SLR22-610581_SLR-Product-Page-Redesign_MAY2023_Phone-3_Desktop%402x.png 846w’
},
title: ‘Complete your application.’
}
]}
title={
}
/>
Screen images simulated. For illustrative purposes only.
Let’s find a loan that fits you.
Take a short quiz for a recommendation on a loan that meets your money needs now.
See terms that work for you.
Refinance your student loans, and you could lower your monthly payment or lower your rate. You may pay more interest over the life of your loan with a lower monthly payment. See payment examples.
View your rate
BTW it’s a soft inquiry, so it won’t affect your credit score.†
We know student loan refinancing.
Since 2011, we’ve helped over 450,000 members refinance their student loans and make strides toward achieving financial freedom. Here’s how:
-
Serious savings
You could save thousands with a lower interest rate and no fees.
-
Easy online process
Your time matters. View your
rate in two minutes. -
Member benefits
Get access to financial advice and more.
We’re helping college grads get their money right.
582,000+
SoFi members have refinanced their student loans
$50 billion+
in student loans refinanced
4.4/5 stars
stars on Trustpilot
*4.4/5 star rating based on 8,940 reviews as of November 25, 2024. See trustpilot.com/review/sofi.com for more info.
I refinanced my student loans and I was able to use the extra money to put toward my home and other investment accounts through SoFi.
—Ebony H., doctor
Actual SoFi member. Paid testimonial.5
FAQs
Who should refinance their student loans?
Student loan refinancing is a great solution for working graduates who have high-interest, unsubsidized Direct Loans, Graduate PLUS loans, and/or private student loans. Federal student loans do carry some special benefits, for example, public service loan forgiveness and economic hardship programs, that may not be accessible to you after you refinance. Check out this blog post that provides more information: When to Consolidate Federal and Private Loans by Refinancing. Or, call us for a free consultation about your particular situation.
Is it worth it to refinance student loan?
The answer to this question depends on your specific financial situation. However, student loan refinancing may be a good option if you can qualify for a lower interest rate and/or a shorter repayment period. By reducing your rate and getting a lower monthly payment term, you’ll owe less interest over the life of the loan and save money in the long run.
Can I refinance both federal and private student loans?
Yes, SoFi will consolidate all qualified education loans.
Am I a good candidate to refinance my student loans with SoFi?
SoFi aims to revolutionize financial services—ultimately improving the system for everyone. Today, we’re able to offer significant savings and flexibility to US citizens or permanent residents who have graduated from a selection of Title IV accredited university or graduate programs, are employed, have a sufficient income from other sources, or hold a job offer with a start date within 90 days, have a responsible financial history, and a strong monthly cash flow.
What is the difference between consolidating and refinancing student loans?
Student loan consolidation is when you combine multiple loans into one single loan. Student loan refinancing, on the other hand, is when you get a new loan at a new interest rate and/or a new term. You can refinance both federal and private loans. Learn more here.
What’s the difference between fixed and variable rate loans?
Fixed rate loans are loans that have an interest rate that does not change over the life of a loan, which means you pay the same amount each month. It also means you know with certainty the total interest that you’ll pay over the life of the loan. Fixed rate is a general term that can apply to different types of loans with a variety of uses, including student loans, mortgages, auto loans, and unsecured personal loans.
Variable rate loans are loans that have an interest rate that will fluctuate over time in line with prevailing interest rates. They generally have lower starting interest rates than fixed-rate loans, but the interest rate and payment amounts can change over time. Sometimes they are also known as floating-rate loans.
Find more info on Fixed vs. Variable Rate Loans.
Where can I find more information about student loans in general?
Deciding how to best handle your student loan refinancing can be an intimidating process. That’s why we’ve put together our Student Loan Help Center to give you guidance on existing student loan payments, refinancing, budgeting, and common terminology so you can feel more confident in your journey to becoming debt free.
How will applying impact my credit score?
To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your
credit score. However, if you choose a product and continue your application, we will request your full
credit report from one or more consumer reporting agencies, which is considered a hard credit pull.
Learn more here.
What are the differences in refinancing federal vs. private loans?
When you refinance your federal student loans, you’ll have a new private loan, and private loans are not
eligible for federal programs and benefits, but it could be a good option if your goal is to lower your
monthly payments or get a lower rate. Once federal loans are refinanced into private loans, they
can’t be converted back, so it’s important you consider all your options. Learn more here.
Do you offer a rate discount?
Yes, we offer an autopay discount, as well as a direct deposit discount. The autopay discount is a 0.25%
interest rate reduction on loans in which you authorize the loan servicer to automatically deduct
monthly payments from any bank account you choose. Additionally, student loan refinance
borrowers who have refinanced after 9/17/24 can earn a 0.25% APR discount by having a qualifying
Direct Deposit. You must have a SoFi Money or SoFi Checking & Savings account to be eligible for the
direct deposit discount.
What’s the difference between an APR and an interest rate?
Your interest rate includes the interest percentage you will be charged for taking a loan out, accrued on
a daily basis, and does not include any other fees. An APR is the sum of the interest rate plus extra fees
and expressed as a percentage.
See all FAQs
More information and resources on student loan refinancing.
Get help from a human.
Ask questions and get help every step of the way from our live customer support team.
Operating hours:
Monday–Thursday 5am–7pm PT
Friday–Sunday 5am–5pm PT
Terms and conditions apply. Discount is valid on all loans submitted from 12/10/2025 12:01 AM PT to 12/16/2025 11:59 PM PT and is subject to lender approval. The offer is only open to SoFi Student Loan Refinance borrowers. To receive the offer, you must: (1) complete a student loan refinance application with SoFi; (2) Submit the application by 8/19/2025 11:59 PM PT (3) and meet SoFi’s underwriting criteria. Discount cannot be applied to previously originated or submitted student loan refinancing loans. SoFi reserves the right to change or terminate the offer at any time with or without notice.
2Fixed rates range from 4.115% APR to 9.865% APR with 0.25% autopay discount and 0.25% direct deposit discount. Variable rates range from 5.865% APR to 9.865% APR with a 0.25% autopay discount and 0.25% direct deposit discount. Unless required to be lower to comply with applicable law, Variable Interest rates will never exceed 13.95% (the maximum rate for these loans). SoFi rate ranges are current as of 3/27/24 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay and Direct Deposit are not required to receive a loan from SoFi. You may pay more interest over the life of the loan if you refinance with an extended term.
0.25% Direct Deposit Discount: Terms and conditions apply. Offer good for Student Loan Refinance (SLR) borrowers that apply for a new SLR on or after 9/17/2024. To be eligible to receive the 0.25% interest rate reduction offer: You must (1) Complete a Student Loan refinance application with SoFi beginning September 17, 2024; (2) Be approved by SoFi for the loan meeting all SoFi’s underwriting criteria; (3) Have either an existing SoFi Checking and Savings account, a SoFi Money cash management account or open a new SoFi Checking and Savings account within 30 days of funding the new loan, AND receive a direct deposit of at least $1,000 to the account within the first 30 days of funding the new loan (“Direct Deposit Account”); (4) Be the primary SLR account holder. If eligible at SoFi’s sole discretion, you will receive this discount during periods in which you have received direct deposits of at least $1,000 every 30 days to a Direct Deposit Account. This discount will be removed during periods in which SoFi determines you have not received at least $1,000 every 30 days in direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to obtain a Loan. This discount lowers your interest rate but does not change the amount of your monthly payment. SoFi reserves the right to change or terminate this Rate Discount Program to unenrolled participants at any time without notice.
SoFi Bank – $150 Reconnect DD
{/* Banking D- $150 Reconnect DD */}
{/* https://sofi.com/direct-deposit-winback-2/ */}
{/* HERO MODULE */}
Make the most out of SoFi with direct deposit.
Learn how to reconnect direct deposit with SoFi. And for a limited time, get a $150 cash bonus when you reconnect direct deposit.1 Offer ends 1/31/25.
Set up direct deposit
{/* Unlock the benefits of direct deposit */}
Get your paycheck early.
With direct deposit, you’ll automatically get your paycheck up to two days early every time you get paid.2
No-fee Overdraft Coverage.
After you set up direct deposit, we’ll cover you up to $50 with no fees if you accidentally spend more than you have.3
$150 direct deposit bonus.
Cha-ching! Get a $150 bonus deposited in your bank account when you reconnect direct deposit.1 Offer ends 1/31/25.
Up to 3.30% APY.
Members with direct deposit can earn 3.30% APY on their savings and Vault balances, and 0.50% on their checking balances.4
{/* 3 ways to set up direct deposit */}
Most Popular! Use your account and routing numbers.
If your employer has an HR portal that allows you to set up direct deposit yourself, you can access your SoFi Checking and Savings account and routing numbers here.
Download, sign, and submit a direct deposit form.
Simply download this pre-filled form, sign it, and submit it to your employer’s payroll department.
Connect to your SoFi Checking and Savings account online.
Once you’re logged in online or on the SoFi app, you can easily connect your SoFi account to your employer’s payroll systems.
Three ways to set up direct deposit.
What do you need to set up direct deposit? With SoFi, you have three different options to get started:
{/*FAQs*/}
FAQs
Direct deposit is a form of electronic payment. It eliminates the need for a physical deposit, like a paper check. Instead you receive the money directly into your checking and savings account.
Direct deposit is by far the most common way to get paid in America. In fact, 82% of U.S. workers get their paychecks electronically as a direct deposit, according to the National Automated Clearing House Association.
To access your account and routing numbers, log in to your account or go to the Banking tab of your SoFi mobile app and tap “More.”
Many employers allow you to change your own direct deposit settings by inputting your account and routing numbers into their HR portal.
On average, it takes two to four weeks for a direct deposit to hit.
You can earn 3.30% APY (annual percentage yield) on savings (including Vaults) balances, and 0.50% APY on your checking balances with direct deposit. That’s 8x the national average savings account rate!9
Members without direct deposit will earn 1.00% on savings balances and 0.50% on checking balances.
A qualifying direct deposit is any recurring ACH deposit from your employer, payroll provider, benefits provider, or certain other government entities such as Social Security. Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g. IRS tax refunds), do not constitute Direct Deposit activity.
It typically takes 1 to 2 pay periods for your direct deposit to become active. After this time frame, you’ll know your direct deposit works when you receive funds on or before your expected payday.
Because direct deposit happens digitally, it’s more secure than paper transactions. Gone are the days of paper checks getting lost in the mail, stolen, or fraudulently cashed. SoFi bank deposits are also insured by the FDIC up to $250,000 per individual and $500,000 per joint account. Plus, SoFi Checking and Savings members can access additional FDIC insurance up to $2M8 by enrolling in the SoFi Insured Deposit Program.
With a SoFi account, you can automatically set up direct deposit without a voided check. However, if you want or need to set up direct deposit manually, you can receive a pre-filled direct deposit form with a voided check.
Stay up to date on the latest business news and stock market happenings.