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Comments Off on SoFi Partners with Venus Williams and Cameron Brink to Launch the ‘Give Her Credit’ Campaign in Honor of the 50th Anniversary of the Equal Credit Opportunity Act
SoFi to Award a Total of $500,000 to 50 People Working to Improve Women’s Financial Independence and Inspire All to Achieve Their Financial Ambitions
SAN FRANCISCO – In honor of the 50th anniversary of the Equal Credit Opportunity Act (ECOA), SoFi (NASDAQ: SOFI), the one-stop shop for digital personal financial services, has teamed up with tennis champion, entrepreneur and author Venus Williams and Los Angeles Sparks forward Cameron Brink to launch the Give Her Credit campaign. With this national initiative, SoFi will begin accepting submissions to award $500,000 to 50 people (each receiving $10,000) to help further advance women’s financial independence and help inspire their financial ambitions.
Before the ECOA, banks could restrict women from getting loans, credit cards, as well as access to other credit based financial products without a male co-signer. But today, thanks in large part to this law, 90% of women either manage or share household financial decisions with their partner,1 and single women own more homes than single men.2 SoFi, along with Venus Williams and Cameron Brink, will commemorate the accomplishments made in women’s financial independence since the passage of the ECOA and recognize how much work is left to achieve true financial equality.
When this groundbreaking law was signed on October 28, 1974 and eventually expanded to other historically marginalized groups, it dramatically reshaped people’s financial autonomy, making it illegal to deny credit mainly based on gender, marital status, or race. The ECOA prevented financial institutions from discriminating against over half of the U.S. population, effectively opening the door for more women to take control of their personal finances and pursue their ambitions with newfound financial independence.
“At an early age, I had clear ambitions and drive to be the best, with the discipline and determination to win, but soon learned of the inequalities and imbalances I would have to face to succeed,” said Venus Williams, who will serve as a judge for the ‘Give Her Credit’ campaign. “I am very proud to partner with SoFi to help identify people who are helping women across the country to reach their financial independence. This campaign is about more than just celebrating progress – it’s about creating real opportunities for financial independence that empower the next generation of women to dream big and win.”
Cameron Brink, SoFi’s newest brand athlete added, “Partnering with SoFi on the 50th anniversary of the ECOA through the Give Her Credit campaign is deeply personal to me. As a female athlete, I’ve seen firsthand how vital financial independence is to women’s progress, and it’s been a key part of the conversations I’ve had to navigate my own career. Just fifty years ago, women like me wouldn’t have had access to credit or the opportunities I have today. While we’ve come a long way, there’s still work to do. This campaign isn’t just about celebrating progress—it’s about ensuring the next generation of women have the financial tools and confidence to take control of their futures.”
While significant progress has been made over the last five decades, the financial gap for women persists. According to a recent SoFi survey, 77% of female SoFi members believe they can accomplish any financial goal they set,3 yet, only 51% of women reported feeling confident managing their finances. Even more concerning, for the first time in 20 years, the U.S. Census recorded a ‘statistically significant’ decline in the ratio of female-to-male earnings — with women working full-time earning on average just 83 cents for every dollar paid to a man in 2023, a slight dip from the 84 cents marked in the agency’s 2022 report.4 Studies also show that women often receive lower credit limits than men,5 face higher interest rates,6 and are less likely to secure lower APRs when requested.7
“As we celebrate the 50th anniversary of the ECOA, we reflect on a pivotal milestone that has transformed the financial landscape for women,” says Liz Young Thomas, Head of Investment Strategy at SoFi. “The ECOA was a significant milestone in protecting women’s ability to independently access credit, ultimately paving the way for greater financial independence. At SoFi, we recognize the importance of continuing this legacy, and I’m proud that through our Give Her Credit initiative, we’ll support efforts to further advance women’s financial independence. SoFi remains committed to driving progress and ensuring that every woman has the opportunity to build a secure financial future.”
How to Enter the Give Her Credit Campaign:
Open call for entries:
◦ Submissions must be entered at www.SoFi.com/givehercredit starting on October 15, 2024, and ending on November 13, 2024, at 11:59 pm PT.
◦ $10k Winners will be notified in early December, 2024, with the official announcement taking place in January 2025.
Submission requirements:
◦ Individuals will be asked to outline a project supporting women’s financial independence.
◦ These projects can be existing efforts or new initiatives inspired by the award.
◦ Submissions will be judged on their potential impact, ability to inspire others, rationale for success, and the clear use of funds.
Eligibility:
◦ Entrants must be 18+ and legal residents of the United States.
To learn more about SoFi’s Give Her Credit campaign, full entry details, eligibility, and terms and conditions, please visit SoFi.com/givehercredit.
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 more than 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, 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, and SoFi Relay – 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.
By Derek Stratton |
Uncategorized |
Comments Off on How to Trade Stocks For Beginners: 5 Easy Steps | Video Page
Videos > Investing >How To Trade Stocks for Beginners
How To Trade Stocks for Beginners
Updated October 14, 2024
Transcript
[Music]
Thanks to technology and readily available educational resources, it has never been easier to start investing. Here are five simple steps you can take to get started:
First: Determine your investing approach. Most people will need to decide whether they want a do-it-yourself approach or whether they’d like to outsource it to an automated platform or an even more hands-on approach with a financial advisor. Additionally, you’ll need to consider your time horizon before investing. Some investors want to invest for long-term goals, while others prefer to trade on a daily or weekly basis and have more short-term holding periods. Your time horizon is a big factor in how high or low your risk appetite may be.
Second: Decide how much you will invest. How much you invest depends entirely on your budget and financial goals. Many financial experts recommend saving between 10 to 15 percent of your after-tax annual income either in a savings account or long-term investment account. With that guideline in mind, you can decide to invest whatever amount is comfortable for you. The most important thing is to get started, no matter the amount.
Third: Open an investment account. There are a variety of options available when it comes to investment accounts. You can use a traditional full-service brokerage firm that will provide additional services beyond just buying and selling securities, such as investment advice, wealth management, and estate planning. But this might not be accessible for new investors because they often require substantial minimum balances. Another option is to do it yourself through an online brokerage, such as an app-based platform. This option can often be ideal for beginners. You can also look into an automated approach through a robo-advisor offering where you answer a questionnaire on your risk appetite and goals and are placed into an appropriate investment model based on your responses. Make sure to research and compare costs and features between each account option.
Fourth: Choose your investments. If you opt for the do-it-yourself approach, now is the time when you choose what to put in your portfolio. Before investing in stocks, be sure to do an adequate amount of research on the individual company to understand the risks and opportunities, including the current valuation of the stock. One of the most common metrics used to evaluate a stock’s value is its price-to-earnings (P/E) ratio. This can be compared to other stocks in the same industry, the stock’s own historical value, or other stocks in your portfolio.
Fifth: Continue building your portfolio. After you’ve decided what stocks to invest in, you want to continue building a portfolio that will help you meet your financial goals. As you add or remove securities, keep diversification principles in mind and be sure to limit concentrated exposures. Spreading your allocations among different sectors and stocks can help make the portfolio more durable through market cycles. Setting up a recurring investment can also help make this a part of your regular financial routine.
Video Key Points
• Determine your investing approach by deciding whether you prefer a do-it-yourself method, an automated platform, or a financial advisor, and consider your time horizon for investing.
• Decide how much to invest based on your budget and financial goals, with a common recommendation being to save 10 to 15 percent of your after-tax annual income.
• Open an investment account, choosing from options like full-service brokerage firms, online brokerages, or robo-advisors, and compare costs and features to find the best fit.
• Choose your investments carefully, conducting thorough research on individual companies and using metrics like the price-to-earnings (P/E) ratio to evaluate stock value.
• Continue building your portfolio by diversifying your investments across different sectors and stocks, and consider setting up recurring investments to make it a regular part of your financial routine.
By Derek Stratton |
Uncategorized |
Comments Off on How to Invest For Your Kids: A Beginner’s Guide | Video Page
Videos > Investing >How to Invest For Your Kids: A Beginner’s Guide
How To Invest For Your Kids: Secure Their Financial Future
Updated October 14, 2024
Transcript
[Music]
There are many benefits to investing for your kids when they’re young. In addition to the exponential effect of compound returns over long periods, you also have the ability to set up different investment plans to capture that opportunity.
One option is opening an individual retirement account (IRA) for your child. These deposits are typically made with after-tax dollars, but can grow and compound tax-free. Depending on income levels, contributions to these plans can have tax advantages as well. Even small contributions have the power to compound meaningfully over time, and IRAs have the benefit of a very long time horizon to help secure your child’s financial future.
Another way to plan for the future is with the 529 plan, which is a tax-advantaged savings plan used for education costs. Much like IRAs, contributions are typically made with after-tax dollars, but the money invested can grow and compound tax-free. Withdrawals from the account to cover qualified education expenses, including tuition, room and board, lab fees, and books, can be made without incurring any tax.
The final investing option is opening a custodial brokerage account. Many financial institutions offer low or no-fee custodial brokerage accounts. The gains in brokerage accounts are taxable in the year incurred, but offer the owner the flexibility to use the funds for any purpose. They also offer higher liquidity than the age or purpose-based limitations imposed by IRAs or 529 plans.
Video Key Points
• Investing for your kids when they’re young offers many benefits, including the exponential effect of compound returns over long periods and the ability to set up different investment plans.
• One option is opening an Individual Retirement Account (IRA) for your child, where deposits are typically made with after-tax dollars but can grow and compound tax-free, depending on income levels.
• Another way to plan for the future is with a 529 plan, a tax-advantaged savings plan used for education costs, where contributions grow tax-free and withdrawals for qualified education expenses are tax-free.
• The final investing option is opening a custodial brokerage account, which offers flexibility to use funds for any purpose and higher liquidity compared to IRAs or 529 plans, although gains are taxable in the year incurred.
• Mortgage rates in Georgia have historically been a little below the national average and are currently nowhere near the highs of the 1980s.
• Mortgage rates are influenced by economic factors such as inflation, unemployment rates, and Federal Reserve policy.
• Higher mortgage rates make homeownership less affordable, while lower rates make it more accessible.
• Georgia offers various mortgage types to cater to different homebuyers’ needs, including fixed-rate mortgages, adjustable-rate mortgages, FHA loans, VA loans, USDA loans, and jumbo loans.
• In Georgia’s least-expensive housing markets, average home values are under $200,000.
Introduction to Mortgage Interest Rates
Securing a home loan is a crucial step in the homebuying process, and homebuyers in Georgia will want to understand the state’s mortgage rate landscape, including factors that influence rates, current trends, available mortgage types, and resources to assist homebuyers.
Mortgage interest rates are determined by a combination of economic factors and the borrower’s financial status. The type of mortgage loan you choose is also very important.
Let’s take a closer look at the Georgia mortgage market.
Where Mortgage Rates Come From
The Federal Reserve, also known as the Fed, sets the short-term interest rates that serve as a benchmark for other interest rates, including mortgage rates. While home loan rates are not directly tied to Fed rates, they tend to follow similar economic trends (more on this later).
How Interest Rates Affect Home Affordability
Mortgage rates have a significant impact on home affordability. Even small changes in interest rates can make a substantial difference in the amount a homeowner will spend over the life of the loan.
For instance, a 1% increase in interest rate on a $200,000 mortgage can result in $130 added to the monthly mortgage payment. For some households, this might make homeownership truly challenging. And even those who can comfortably afford the extra monthly amount will probably find the idea of paying more than $40,000 in additional interest over the life of the loan to be painful.
Should Homebuyers Wait for Interest Rates to Drop?
Many homebuyers face the dilemma of whether to purchase a home immediately or wait for interest rates to decrease. This might be especially confusing if you are buying your first home. While it is possible that rates will drop in the future, it is essential to consider the opportunity cost of waiting: Home prices may rise while you are waiting on rates.
Homeowners should keep in mind that they can always undertake a mortgage refinance and try to obtain a lower rate in the future.
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Examining historical mortgage rate trends can put today’s rates in perspective. While rates in Georgia aren’t at an all-time high, they aren’t the lowest they have ever been either. (The table ends in 2018 because that’s when the FHFA stopped reporting state interest rates.)
Year
Georgia Rate
U.S. Rate
2000
7.96
8.14
2001
6.90
7.03
2002
6.45
6.62
2003
5.72
5.83
2004
5.69
5.95
2005
5.87
6.00
2006
6.56
6.60
2007
6.29
6.44
2008
6.05
6.09
2009
4.95
5.06
2010
4.75
4.84
2011
4.52
4.66
2012
3.64
3.74
2013
3.80
3.92
2014
4.12
4.24
2015
3.85
3.91
2016
3.72
3.72
2017
4.07
4.03
2018
4.58
4.57
Source: Federal House Finance Agency
Historical U.S. Mortgage Rates
It also helps to take the long view and look at U.S. mortgage rate trends over several decades. The chart below shows that rates reached well into the double digits in the 1980s.
Factors Affecting Mortgage Rates in Georgia
Numerous factors influence mortgage rates in Georgia and across the United States. These factors can be categorized into economic factors and consumer factors. While economic factors are beyond the control of homebuyers, others are directly influenced by the borrower’s financial situation and creditworthiness.
Economic Factors
• The Fed: The Federal Reserve plays a crucial role by setting the federal funds rate, which serves as a benchmark for other interest rates, including mortgage rates. When the Fed lowers its rate, banks and other lenders typically lower mortgage rates.
• Inflation: When prices rise, the purchasing power of money decreases, making it more expensive for lenders to lend money. To compensate for this, lenders may increase interest rates to maintain their profit margins.
• Unemployment: You’re probably wondering what might cause the Fed to raise or lower its rate. One influential factor is the unemployment rate. When unemployment is high, the Fed often reduces its benchmark rate to try to stimulate job creation. Mortgage rates then tend to fall.
Consumer Factors
• Credit score: A borrower’s credit score is a key factor in determining mortgage interest rates. A higher credit score indicates a history of responsible borrowing and debt management. This typically leads to a lender offering a more favorable mortgage interest rate.
• Down payment: The size of the down payment can impact what mortgage interest rate a borrower is offered. A larger down payment means the borrower will have more equity in the home and the lender will have less risk. Borrowers who make a larger down payment may qualify for a lower mortgage interest rate.
• Income and assets: Lenders carefully evaluate a borrower’s income and assets when determining mortgage interest rates. A steady income and sufficient assets provide assurance to lenders that the borrower can consistently make mortgage payments. This may qualify the borrower for a lower interest rate.
• Type of mortgage loan: Adjustable-rate mortgages (ARMs) often have lower initial rates compared to fixed-rate mortgages. Furthermore, shorter loan terms typically come with lower interest rates than longer loan terms.
Georgia offers a diverse range of mortgage types to cater to the needs of various homebuyers. These include fixed-rate mortgages, adjustable-rate mortgages (ARMs), Federal Housing Administration (FHA) loans, Veterans Affairs (VA) loans, and United States Department of Agriculture (USDA) loans.
Fixed-Rate Mortgage
Fixed-rate mortgages provide stability and predictability by maintaining the same interest rate throughout the entire loan term, which might be 10, 15, 20, or 30 years. The choice of loan term depends on the borrower’s financial situation and preferences. Shorter loan terms generally have lower interest rates but higher monthly payments, while longer loan terms have higher interest rates but lower monthly payments.
Adjustable-Rate Mortgage (ARM)
Adjustable-rate mortgages (ARMs) provide an initial interest rate that is lower than fixed-rate loans. This can be beneficial for borrowers who plan to sell their home or refinance before the fixed-rate period ends.
FHA Loans
FHA loans, backed by the Federal Housing Administration, are designed to make homeownership more accessible for borrowers with limited financial resources. They typically have more lenient eligibility requirements compared to conventional loans, including more flexible credit score requirements. For first-time homebuyers, the down payment can be as little as 3.5% of the purchase price.
VA Loans
VA loans are exclusively available to veterans, active-duty military members, certain members of the Reserve and National Guard, and surviving spouses. These loans offer competitive interest rates. One of the key advantages of VA loans is that they do not require a down payment. This can significantly reduce the upfront costs associated with purchasing a home, making it more affordable for eligible borrowers.
USDA Loans
USDA loans are specifically designed for borrowers whose income falls within guidelines and who are looking to purchase a home in a rural area. These loans are backed by the U.S. Department of Agriculture (USDA) and offer favorable terms, including no down payment requirement and competitive interest rates.
Jumbo Loan
Conventional mortgage loans have a maximum lending limit set by the Federal Housing Finance Agency (FHFA). For a single-family home in Georgia, the current conforming loan limit is $832,750. Loans that exceed this amount are considered jumbo loans.
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 Georgia
When searching for a mortgage, it is essential to consider the location where you plan to purchase a home. Some areas may offer more affordable housing options.
The cost of living in an area can significantly impact affordability. The Cost of Living Index (COLI) provides a comparison of the cost of living in the U.S. and in different states relative to the national average. This index can be a useful tool when evaluating the affordability of different locations.
Least Expensive Locations
Here are some of the least expensive locations in Georgia to get a mortgage, based on the cost of living:
• Statesboro With a diverse population of around 32,000, this is one of the least-expensive places to live in all of Georgia. Its cost of living is 12% below the state’s average.
• Albany The birthplace of Ray Charles is located in southwest Georgia. The average Albany home value is remarkably low at $129,679.
• Augusta The home of the Masters golf tournament is a larger city of more than 200,000 people. Though larger cities tend to be on the more costly side, Augusta’s cost of living is 14% below the national average and its average home value is well under $200,000.
• Dublin Home to less than 16,000 people, Dublin has an overall cost of living that is 8% below that of Georgia in general.
Most Expensive Locations
Atlanta is the state’s most expensive location based on its cost of living and has an average home value close to $400,000. The average home value in Vinings, outside Atlanta, is even higher: $512,457. Georgia boasts some lovely coastal towns and not surprisingly, they are also some of the more expensive locations in Georgia to get a mortgage. In Tybee Island, the average home value is $691,818. St Simons Island, just south of Tybee Island, is similar.
Tips for Securing a Competitive Mortgage Rate in Georgia
Obtaining a competitive mortgage rate can significantly reduce the overall cost of borrowing and save you thousands of dollars over the life of your loan. Here are two important steps to take to get a good rate:
Compare Interest Rates and Fees
It’s important to shop around and compare interest rates and fees from different lenders. Lenders may offer varying rates and terms, so taking the time to compare multiple options can help you secure the best possible deal.
In addition to comparing interest rates, be sure to inquire about any upfront costs or closing fees associated with the loan. These fees vary among lenders and can add to the overall cost of borrowing.
Get Preapproved
Getting preapproved for a mortgage is a big step toward homeownership. Going through the mortgage preapproval process provides you with a clear understanding of your borrowing power and strengthens your position when making an offer on a property.
If you are concerned that interest rates may rise, you can lock in your rate for a certain period, typically up to 90 days, by paying a fee to the lender. This can provide peace of mind and protect you from potential rate increases.
Georgia Mortgage Resources
Georgia provides a range of resources and programs to support homebuyers, especially those who qualify as a first-time homebuyer qualify as a first-time homebuyer and those facing financial challenges. These resources can help make homeownership more accessible and affordable.
First-Time Homebuyer Programs
First-time homebuyers, those who haven’t owned a primary residence in the last three years, and people purchasing in certain areas of Georgia may be eligible for the Georgia Dream Homeownership Program. This program has income, asset, and home price limits and you’ll need to meet credit-score criteria to qualify. The Peach Plus program is for those who are not first-time buyers. It has higher income and home price ceilings than the Georgia Dream program.
Down Payment Assistance
Georgia also offers various down payment assistance programs to help eligible homebuyers overcome the challenge of saving for a down payment. Georgia Dream participants, for example, can qualify for down payment and closing cost assistance.
Tools & Calculators
To help you make informed decisions, you can use tools and calculators to determine how much house your income and debt level can support, what your monthly mortgage payment might be, and more.
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 Georgia
FHA-insured homeowners have the option to refinance their existing FHA loan through the FHA Streamline Refinance program. This program offers simplified requirements and allows homeowners to take advantage of lower interest rates without a full appraisal or extensive documentation.
VA loan holders may benefit from the Interest-Rate Reduction Refinance Loan (IRRRL), which allows them 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.
Banks and other lenders also offer refinancing on conventional mortgages.
Closing Costs, Taxes, and Fees in Georgia
Closing costs associated with purchasing a home in Georgia typically range between 3% and 6% of the purchase price. These costs may include loan origination fees, appraisal fees, title insurance, and other administrative charges.
The specific closing costs in Georgia can vary depending on the value of the property and its location. Higher-priced properties may incur higher closing costs.
The Takeaway
Georgia presents a diverse mortgage landscape that caters to the needs of various 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 be happy homeowners in the Peach State.
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.
Predicting future mortgage rate trends is challenging due to the influence of multiple economic factors. However, staying informed about current market conditions and monitoring economic indicators can provide insights into potential rate movements.
Will mortgage rates ever go back to normal?
There isn’t really a “normal” where mortgage rates are concerned. Historical data shows that mortgage rates have fluctuated over the years, and current rates may not necessarily return to a specific past level.
Will Georgia home prices ever drop?
Real estate market trends are influenced by numerous factors, including supply and demand, economic conditions, and local market dynamics. Predicting future home price movements is complex and uncertain.
Is it a good time to buy a house in Georgia?
Determining the right time to buy a house involves personal financial considerations, market conditions, and individual preferences. It is essential to assess your financial situation, research the local real estate market, and consult with a real estate professional to make an informed decision.
How do I lock in a mortgage rate?
To lock in a mortgage rate, you can work with a lender to secure a specific interest rate for a certain period, typically ranging from 30 to 90 days. This process involves paying a fee to the lender and agreeing to the terms and conditions of the locked-in rate.
How do mortgage interest rates work?
Mortgage interest rates are determined by a combination of economic factors and borrower-specific characteristics. Economic factors include the Federal Reserve’s interest rate decisions, inflation, and unemployment rates. Borrower-specific factors include credit score, down payment, income, assets, and the type of mortgage loan.
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.
‡Up to $9,500 cash back: HomeStory Rewards is offered by HomeStory Real Estate Services, a licensed real estate broker. HomeStory Real Estate Services is not affiliated with SoFi Bank, N.A. (SoFi). SoFi is not responsible for the program provided by HomeStory Real Estate Services. Obtaining a mortgage from SoFi is optional and not required to participate in the program offered by HomeStory Real Estate Services. The borrower may arrange for financing with any lender. Rebate amount based on home sale price, see table for details.
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®.
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• Mortgage rates in New York typically run a bit lower than the national average.
• While the cost of living in New York City is quite high — 72% above the national average — Upstate locations can be 20% to 25% lower than the rest of the country.
• Mortgage rates are influenced by economic conditions, Federal Reserve policy, and market supply and demand, among other things.
• Higher mortgage rates make homes less affordable, while lower rates make them more affordable.
• New York offers the full range of mortgage types, including fixed-rate mortgages, adjustable-rate mortgages (ARMs), FHA loans, VA loans, USDA loans, and jumbo loans.
Introduction to Mortgage Interest Rates
Mortgage interest rates are the fees charged by lenders for borrowing money to purchase a home. These rates are influenced by various economic indicators and the borrower’s financial profile.
Economic factors that impact mortgage rates include the Fed’s interest rate decisions, inflation, and unemployment rates. Borrower-specific factors include credit score, down payment amount, income and assets, and the type of home loan.
Understanding the dynamic nature of mortgage rates is essential for navigating the mortgage process successfully. This comprehensive guide answers New York house hunters’ most burning questions, including tips for securing the lowest mortgage rates available.
Where Mortgage Rates Come From
The Federal Reserve, also known as the Fed, plays a pivotal role in determining mortgage rates. The Fed sets short-term interest rates, which serve as benchmarks for other interest rates, including mortgage rates. Although mortgage rates are not directly tied to Fed rates, they tend to follow similar economic trends.
When the Fed’s interest rate is high, there’s a greater likelihood that mortgage rates will also be higher. Conversely, when the Fed’s interest rate is low, mortgage rates tend to be more favorable for borrowers.
How Interest Rates Affect Home Affordability
Mortgage rates have a significant impact on home affordability, often playing a more crucial role than people realize. If you’re buying your first home, you should know that even small fluctuations in interest rates can significantly affect your monthly mortgage payment and the overall cost of homeownership.
For instance, a slight increase in the interest rate can make it challenging for middle-income families to afford a home — or meet financial goals. A mere 1.00% interest rate increase on a $300,000 loan can result in an additional $2,300 in annual interest payments. Over the life of a 30-year mortgage, this translates to a shocking $69,000 in additional interest paid.
Most of us would have better things to do with that money: fund a college 529 account, enjoy annual vacations, or put it aside for a rainy day.
Should Homebuyers Wait for Interest Rates to Drop?
Many first-time homebuyers face the dilemma of whether to purchase a home immediately or wait for interest rates to decrease. While it’s tempting to wait for a more favorable interest rate environment, it’s important to consider a few things before making a decision.
First, homebuyers should recognize that mortgage rates are cyclical and can fluctuate over time. Waiting for an ideal interest rate may result in missing out on other favorable market conditions or even facing higher rates in the future.
Second, even if rates do drop, the overall cost of waiting may outweigh the savings. Home prices in many places appreciate over time, offsetting any potential savings from lower interest rates.
Additionally, homeowners have the option to refinance their mortgage in the future when interest rates drop. Refinancing allows borrowers to secure a lower interest rate on their existing mortgage, potentially reducing their monthly payments and saving money over the life of the loan.
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Examining historical mortgage rate trends in New York can provide valuable insights into potential future rate movements. While mortgage rates have trended upward in recent years, they remain below historical highs and are currently hovering around the 50-year average.
Whether or not you consider yourself financially savvy, it’s a good idea to monitor economic news and market conditions so you have a general sense of where mortgage rates are headed.
Year
New York Rate
U.S. Rate
2000
8.10
8.14
2001
7.02
7.03
2002
6.47
6.62
2003
5.63
5.83
2004
5.70
5.95
2005
5.78
6.00
2006
6.44
6.60
2007
6.40
6.44
2008
6.03
6.09
2009
5.06
5.06
2010
4.80
4.84
2011
4.55
4.66
2012
3.62
3.74
2013
3.77
3.92
2014
4.08
4.24
2015
3.81
3.91
2016
3.62
3.72
2017
3.91
4.03
2018
4.37
4.57
Source: Federal House Finance Agency
Historical U.S. Mortgage Rates
Here’s another view of historical U.S. mortgage rates. Over the past few decades, mortgage rates have experienced periods of both highs and lows. The highest average annual mortgage rate was recorded in 1981 at 18.63%, while the lowest was observed in 2021 at 2.65%.
Factors Affecting Mortgage Rates in New York
Many factors influence mortgage rates in New York and across the nation. Some of these factors are economic, while others have to do with the individual homebuyer’s financial situation.
Understanding these factors can help borrowers make informed decisions and position themselves for the best possible mortgage rates.
Economic Factors
The Big Picture influences that impact mortgage rates include:
• The Fed: The Federal Reserve’s decisions regarding the federal funds rate have a significant influence on mortgage rates. When the Fed raises the federal funds rate, it becomes more expensive for banks to borrow money, leading to an increase in mortgage rates. The opposite is also true: A decrease in the federal funds rate can result in lower mortgage rates.
• Inflation: Inflation, measured by the Consumer Price Index (CPI), reflects the overall increase in the prices of goods and services. When inflation rises, the value of money decreases, making it more expensive for lenders to lend money. To compensate for this, lenders may increase mortgage rates to maintain their profit margins.
• Unemployment rate: The unemployment rate is another economic indicator that affects mortgage rates. A low unemployment rate generally signifies a robust economy, characterized by increased consumer spending and business investment. This economic strength often leads to higher demand for housing, driving up home prices and, consequently, mortgage rates.
Consumer Factors
But an individual’s financial profile also influences the mortgage rates they’re offered:
• Credit score: Ranging from 300 to 850, a credit score is a numerical representation of an individual’s credit history and repayment behavior. Borrowers with higher credit scores are considered lower-risk borrowers, making them more attractive to lenders.
As a result, homebuyers with a score of 740 or above are often rewarded with lower mortgage interest rates. However, FHA loan applicants can qualify for a mortgage with a score as low as 500 if they put down 10%.
• Down payment: In an April 2024 SoFi survey of 500 people, we asked house hunters about their down payment amount. Here are the results:
◦ 30% planned on an 11% – 20% down payment
◦ 19% hoped to have a 6% – 10% down payment
◦ 10% aimed for a 5% down payment or less
◦ 7% were exploring $0 down payment options
The down payment represents the portion of the home’s purchase price that the borrower pays upfront. A larger down payment reduces the loan amount required, lowering the lender’s risk. To incentivize larger down payments, lenders typically offer lower mortgage interest rates for borrowers who make a substantial down payment.
• Income and assets: Lenders carefully assess a borrower’s income and assets to determine their ability to repay the mortgage. A steady income and substantial assets provide assurance to lenders that the borrower can meet their financial obligations. As a result, borrowers with strong income and asset profiles may qualify for lower mortgage interest rates.
• Type of mortgage loan: The type of mortgage loan selected can also impact the interest rate. For example, adjustable-rate mortgages (ARMs) often have lower initial interest rates compared to fixed-rate mortgages. Additionally, government-backed loans, such as VA loans, may offer more favorable interest rates. And a shorter loan term typically comes with a lower interest rate than a longer loan term.
Types of Mortgages Available in New York
New York offers the full range of mortgage types to cater to the needs of different homebuyers. These include:
Fixed-Rate Mortgages
A fixed-rate mortgage offers a consistent interest rate throughout the entire loan term, providing stability and predictability in monthly payments. Fixed-rate mortgages are available in terms of 10 to 30 years.
Adjustable-Rate Mortgage (ARM)
Adjustable-rate mortgages (ARMs) initially offer a lower interest rate compared to fixed-rate loans. However, after a predetermined introductory period, the interest rate can fluctuate based on market conditions. ARMs can be beneficial for borrowers who plan to sell their home before the fixed-rate period ends.
Federal Housing Administration (FHA) Loan
FHA loans, backed by the Federal Housing Administration, are designed for borrowers with limited down payments and lower credit scores. These loans offer more flexible credit and income requirements compared to conventional loans.
One drawback of FHA loans is that they require an upfront mortgage insurance premium (MIP) of 1.75% of the base loan amount, as well as monthly MIP for new homebuyers of 0.15% to .75% — most often 0.55%.
Deparment of Veteran Affairs (VA) Loans
VA loans are available to veterans, active-duty military members, and some Reserve and National Guard members. These loans offer competitive interest rates and do not require a down payment, making them an attractive option for eligible borrowers. The first step in getting a VA mortgage is obtaining a certificate of eligibility from the VA.
US Department of Agriculture Loans
USDA loans are designed for low-income borrowers looking to purchase a home in a rural area. These loans are backed by the U.S. Department of Agriculture and offer favorable interest rates and no down payment or mortgage insurance requirement. However, USDA loans require a 1% upfront guarantee fee and a 0.35% annual guarantee fee, based on the remaining principal balance each year.
Jumbo Loans
Jumbo loans are conventional loans that exceed the conforming loan limit set by the Federal Housing Finance Agency (FHFA). These loans are typically used to finance high-value properties and may have different interest rates and requirements compared to conventional loans. In New York state, if you need a mortgage of more than $832,750 — or $1,209,750 in New York City and its surrounding counties — you’ll require a jumbo loan.
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 York
Securing a mortgage often depends on choosing the right location, where home prices and the cost of living are affordable
Some popular places to get a mortgage in New York include:
• New York City: Despite its reputation for high housing costs, New York City offers various mortgage options and programs to assist homebuyers.
• Long Island: With a diverse range of housing options and proximity to New York City, Long Island attracts many homebuyers.
• Westchester County: Known for its suburban charm and proximity to New York City, Westchester County offers a mix of affordable and high-end housing options.
• Upstate New York: Upstate offers a more affordable housing market compared to other parts of New York, making it an attractive option for first-time homebuyers.
Least Expensive Locations
Compared to the New York City area, Upstate New York can be surprisingly affordable, with the average monthly expenses for one person or a family considerably lower than the U.S. average. The least expensive locations to buy a home in New York include:
• Watertown-Fort Dunn: This area offers a low cost of living (19% lower than the average cost of living in the U.S.) and a variety of housing options. The average home value is $216,000.
• Ogdensburg-Massena: Located in the northern part of the state, this area is known for its affordable housing (average home value: $113,000) and scenic beauty. The cost of living here is 25% lower than the U.S. average.
• Elmira: Situated in the Southern Tier region, Elmira offers a mix of affordable housing (average home value: $120,000) and outdoor recreational opportunities. The cost of living is 22% lower than the U.S. average.
• New York City: Known for its high cost of living (72% higher than average), New York City has some of the most expensive housing markets in the country. The average home value here is $755,137.
• The Hamptons: This popular summer destination on Long Island is known for its luxurious real estate and high property values. The average home value in East Hampton is $1,877,000.
• Westchester County: Certain areas of Westchester County, such as Scarsdale and Rye, are known for their affluent communities and expensive housing. The cost of living in Scarsdale is 57% higher than average.
Tips for Securing a Competitive Mortgage Rate in New York
Obtaining a competitive mortgage rate can significantly impact the overall cost of homeownership. Here are some tips to help you secure a favorable mortgage rate in New York:
Compare Interest Rates and Fees
Take the time to compare interest rates and fees from multiple lenders. Don’t hesitate to negotiate and ask about any upfront costs or closing fees associated with the loan.
Get Preapproved
Getting preapproved ffor a mortgage strengthens your position as a buyer and allows you to move quickly when you find the right property. If you’re concerned about interest rates rising, you can pay a fee to the lender to lock in your rate for up to 90 days.
Unlike prequalification, which takes just minutes online, the mortgage preapproval process can take up to 10 days.
New York Mortgage Resources
New York offers various resources and programs to assist homebuyers, particularly first-time buyers and those with limited financial resources.
First-Time Homebuyer Programs
New York State offers several programs to help first-time homebuyers. To qualify as a first-time homebuyer in New York, you must not have owned a home in the past three years. Some other groups that may qualify for first-timer benefits are single parents who previously owned a home with a partner, and homeowners whose property wasn’t in compliance with building codes.
The State of New York Mortgage Agency (SONYMA) Achieving the Dream program offers first-time homebuyers a 30-year fixed-rate mortgage, with a 3% down payment, 1% of which must come from savings. SONMA also offers low-interest loans and low down payment requirements for the purchase of primary family homes.
Down Payment Assistance
Various programs in New York provide down payment assistance to eligible homebuyers. The HomeFirst program provides a forgivable loan of up to $100,000 toward the down payment or closing costs on a one- to four-family home, condo, or coop in New York City. Eligibility includes income limits, homebuyer education, and a 3% down payment.
Tools & Calculators
Several online tools and calculators can help you estimate your monthly mortgage payments, compare interest rates, and determine your affordability. Here are just a few from SoFi:
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 York
If you’re an existing homeowner, a mortgage refinance may help you secure a lower interest rate and reduce your monthly payments. The FHA Streamline Refinance allows FHA-insured homeowners to refinance into current mortgage rates with minimal hassle. And an Interest-Rate Reduction Refinance Loan can reduce the monthly payments on VA loans by adjusting the APR.
Closing Costs, Taxes, and Fees in New York
Closing costs, taxes, and fees associated with buying a home in New York can vary depending on the location and property value. Buyers in New York can expect to pay between 2% and 5% of the home’s purchase price in closing costs. Factors influencing closing costs in New York include property value and location.
The Takeaway
New York offers a diverse range of housing 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 Empire State.
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.
Predicting future mortgage rate movements is challenging due to the influence of numerous economic factors. However, monitoring economic indicators and staying informed about market trends can help you make informed decisions about buying a home or refinancing your mortgage.
Will mortgage rates ever go back to normal?
There really isn’t a definition of “normal” mortgage rates. Rates have fluctuated throughout history, influenced by economic conditions, inflation, and monetary policies. While rates may not return to a specific historical level, they can be normal for that period of time.
Will New York home prices ever drop?
New York home prices are influenced by a combination of economic, demographic, and market factors. Predicting future price movements is complex and uncertain. However, factors such as changes in supply and demand, economic conditions, public policy, and interest rates can impact home prices.
Is it a good time to buy a house in New York?
Determining the right time to buy a house in New York depends on your individual financial situation, housing needs, and market conditions. Factors such as mortgage rates, home prices, and your long-term financial goals should be considered when making this decision.
How to lock in a mortgage rate?
To lock in a mortgage rate, you can work with a lender to obtain a rate lock agreement. This agreement guarantees a specific interest rate for a certain period, typically ranging from 30 to 90 days. There may be associated fees for locking in a rate.
How do mortgage interest rates work?
Mortgage interest rates represent the cost of borrowing money from a lender to purchase a home. They are influenced by various factors, including the Federal Reserve’s interest rate decisions, inflation, economic conditions, and the borrower’s credit profile. Lenders use these factors to determine the interest rate charged on a mortgage loan.
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*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.
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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.
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