SoFi

Millennials continue to make up the biggest share of homebuyers, at 43%, according to a 2022 National Association of Realtors® report.

And Gen Y is the most educated group of buyers, so if you’re a millennial, you’re smart; you already know a few things about home buying.

But if you’re part of the generation of people born between 1981 and 1996, you may still have questions. Here are eight tips to buy a house.

Smart Homebuying Tips for Millennials

1. Pay Down Debt First

The average millennial had about $28,300 in nonmortgage debt in 2021, according to Experian’s latest State of Credit Report. The average balance on retail credit cards was over $1,800.

Gen Y’s credit utilization rate — the percentage of available credit you’re using on your revolving credit accounts — was 30.2% on average. That’s the top end that’s generally advised, but lower is considered better.

As many millennials know, savvy credit card users maximize the rewards they earn or take advantage of interest-free offers. But carrying a revolving credit card balance can add up.

Clearing out at least some debts may be a great place to start on a millennial homeownership journey. You’ll likely need to take out a mortgage to purchase a new house, which will account for an even larger portion of personal debt.

There are several strategies to pay off debt, including the snowball and avalanche methods.

Those methods are part of six ways to become debt free.

Recommended: How Many Credit Cards Should I Have?

2. Start Saving for a Down Payment

After whittling down at least some debt, it’s time to think about how to afford a down payment.

Though a 20% down payment may allow you to avoid paying private mortgage insurance on a conventional (nongovernment) loan and get a better rate, borrowers often are able to put down as little as 3%.

The down payment on a house can be as low as 3.5% for an FHA loan if you have a FICO® score of at least 580 (but mortgage insurance always comes along for the ride with an FHA loan and will not drop off unless you’re putting at least 10% down).

USDA and VA loans usually do not require any down payment, but the eligibility for those loans is pretty narrow.

Many lenders give first-time homebuyers a break, and income-qualifying first-time buyers may be able to get down payment assistance from state or city programs.

Younger millennials use a gift or loan from friends and family to help fund the purchase more than any other generation, the National Association of Realtors has found. A gift will need to be documented in a gift letter for the mortgage.

Recommended: 31 Ways to Save for a House

3. Determine Your Must-Haves

Here’s one of the most fun parts about purchasing a home: plotting a dream space.

Before starting your home search, it’s helpful to take some time and think about what you really want. Do you want an open-concept home, or need a minimum number of bedrooms and bathrooms?

Are you considering a condo or townhouse? The maintenance will be minimized, but regular fees are usually part of the deal.

Or is your heart set on buying a single-family home? You’ll usually be responsible for maintaining everything from the roof to the yard (hope you don’t mind mowing, blowing, and edging or paying to have that done).

Maybe you’re open to a frumpy house because you know you can easily upgrade your home with a smart front door, outdoor lighting, paint, and more.

Or maybe new construction — everything shiny and new — is calling your name.

To narrow the search, think about everything on your must-have vs. like-to-have list.

Recommended: How Do Home Improvement Loans Work?

4. Find a Real Estate Agent

Though you don’t have to use a real estate agent to purchase a home, a buyer’s agent can be your guide from the first viewing to the closing.

Real estate agents have access to a multiple listing service (MLS), which allows them to sift through every home in your area at once. They may also have pocket listings, or whisper listings, few others know about.

A real estate agent is also well versed in what needs to take place before a buyer can take ownership of a home, including making an offer, scheduling a home inspection, and obtaining homeowners insurance.

They know how to handle counteroffers, contingencies, and putting an offer on a house that’s contingent.

They may also have a list of trusted inspectors, lawyers, contractors, and insurance agents a buyer may need along the way.

Recommended: Guide to Buying, Selling, and Updating Your Home

5. Set Up Real Estate Alerts

Millennials are digital natives, so this part is cake.

Once your list of must-haves is complete and you’ve picked a real estate agent to assist you, it could be a good idea to set up alerts across listing sites such as the MLS, Zillow, and Redfin. You’ll be notified whenever a home in your chosen area, price range, and desires comes onto the market.

These websites also typically allow users to save favorites and gather intel on a specific home, such as its tax and sales history. They also allow users to book viewing appointments.

6. Think About Long-Term Value

While viewing homes, it may be easy to fall in love with fresh subway tiles, staged furniture, and the simple shine of a brand-new spot. However, it helps to take a beat and a breath and think about the long-term value of the home.

Are you buying this home as a spot to raise a family? Then make sure the schools are a good fit and it’s a walkable neighborhood. Looking at purchasing a home to rent out short term? Check local laws to ensure you’re zoned properly.

Are you buying a house from a family member? A gift of equity is a lovely thing for a buyer indeed.

Recommended: Local Housing Market Trends by City

7. Consider a ‘Love Letter’ and Incentives

Once you’ve found a home in your price range that comes with all your must-haves, it’s time to put in an offer. There is something you can add to your offer to stand out from the crowd: a personal real estate offer letter, or so-called love letter.

If you choose this route, write a letter to the current homeowner expressing how much you love the space and why you feel you’d make the next great owner. You may also want to point out all the things you love about the home design.

To make your offer stand out, you could also provide a quick closing date, suggest paying for things like a termite inspection, and offer a leaseback to the owners until they are ready to move out.

8. Shop for a Mortgage

With any luck, you’ve gotten prequalified or preapproved and know how much of a mortgage you can afford.
Now it’s time to look for a home loan.

When shopping for a mortgage, realize that advertised rates may differ from what you’re offered. Multiple factors determine your rate.

You can apply for a mortgage online with any number of direct lenders and mortgage brokers. Just try to do so within 14 days to protect your credit score.

Then you can compare all the details of the mortgage offers in the loan estimates you’ll receive after applying with each.

The Takeaway

As multitudes of millennials suit up to take the homebuying plunge, they will benefit by getting their finances in order, hiring an agent, setting up real estate alerts, and shopping for a mortgage.

SoFi is there for Gen Y with competitive rates, a variety of terms, and low down payments.

Look into the advantages of SoFi mortgage loans and get a quick rate quote.

---

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.

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.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOHL0822025

Read more

For those looking to trade big-city life for backyards and gardens, more square footage, home office space, and parks, the suburbs may be the perfect spot to call home.

Let’s not forget great public schools, a hallmark of a high-ranking suburb.

Top 50 Suburbs in the US

Although the country teems with ’burbs, here’s a look at the 50 best suburbs according to Niche, using government data and community reviews.

If safety is a big priority, also take a look at the 50 safest cities in America.

1. Chesterbrook, Pennsylvania

Chesterbrook was crowned first among U.S. suburbs. With highly rated public schools and an intimate feel (under 6,000 residents), this Philadelphia suburb is leafy and cozy. Chesterbrook is among eight Keystone State suburbs on this list.

2. Penn Wynne, Pennsylvania

Real estate can get pricey in Penn Wynne (also known as Wynnewood), a small Philly suburb where about half of the population of 6,650 has at least a master’s degree and where locals are passionate about the arts. Bars, coffee shops, and parks lend an urban-suburban feel.

3. Ardmore, Pennsylvania

Those looking to put down roots in a suburban neighborhood that also has an urban feel will like Ardmore, yet another Philadelphia ’burb, with about 13,800 residents. It has plenty of restaurants, bars, coffee shops, and parks to choose from and excellent schools.

4. Los Alamos, New Mexico

This historic suburb of 13,400 denizens is the birthplace of the atomic bomb, but it also happens to be known as a great place to live with a top-notch public school system and nature all around.

5. Carmel, Indiana

Carmel, north of Indianapolis, features neighborhoods rich in architectural diversity and low in crime. This spot is home to more than 103,000 people.

6. Great Neck Plaza, New York

With eateries, parks, and superlative public schools, this village on the North Shore of Long Island is walkable, dog friendly, and commutable to Manhattan by train. The burg of 7,640 has a strong contingent of retirees and home prices below the national average. If this New York suburb isn’t the right fit, maybe one of the other nine will be.

7. Okemos, Michigan

The east side of East Lansing is beloved because of its low crime rates, lower-than-average cost of living, and the amenities at Michigan State University. With a population of about 25,870, Okemos has stellar public schools, a college town vibe, and a small base of tech employment.

8. Richmond Heights, Missouri

This St. Louis suburb, home to about 9,400 people, offers amenities for both families and young professionals. With highly rated public schools, Richmond Heights also has a vibrant nightlife scene and good housing options.

9. Holly Hills, Colorado

For a small-town feel and great public schools, hop on over to Holly Hills. This Denver suburb is home to about 2,700, so you’re likely to know a lot of your neighbors.

10. Brookline, Massachusetts

This Boston suburb’s public schools constantly receive high marks and welcome families from around the globe. With about 64,000 residents, Brookline is attractive but not cheap: Its median home sale price is more than double the national median.

11. Great Neck Gardens, New York

With fewer than 1,300 residents, this New York City suburb has the usual perks of a coveted hamlet, and a relatively gigantic housing cost.

12. Clarendon Hills, Illinois

This community southwest of Chicago (pop. 8,760) offers top-notch public education for children, a safe environment, and a vibrant downtown. The median home sale price is a bit above the national median.

13. Swarthmore, Pennsylvania

Swarthmore has small-town charm but is only a 20-minute train ride to Philadelphia’s museums, theaters, and restaurants. The suburb of about 6,600 offers more than two dozen forested trails for those looking to connect with nature.

14. Clayton, Missouri

Those looking to give their career a boost may find opportunity in Clayton. This St. Louis suburb of 17,600 employs over 7,300 people. Clayton is also considered green and safe. The median home price tends to be above the U.S. median price.

15. Brentwood, Missouri

This affordable St. Louis suburb is home to nearly 8,300, many of whom are young professionals. Highly rated schools, a high homeownership rate, and a variety of parks and dining establishments make Brentwood one of the best suburbs in the Show-Me State and the country.

16. Brighton, New York

Brighton is overflowing with historic charm. This Rochester suburb of 37,200 was established in 1814 and features well-preserved 19th-century brick homes.

17. Manhasset Hills, New York

About 3,660 people call this New York City suburb home. Manhasset Hills has a rural feel and an average home sale price topping $1 million.

18. Mount Lebanon Township, Pennsylvania

Architecture lovers will fall head over heels for this neighborhood (lovingly known by locals as Lebo). This Pittsburgh suburb of about 33,600 people blends sophistication and small-town charm. Take your pick from American Craftsman, stone Colonials, Prairie, and English Tudor style homes.

19. Oakwood, Ohio

With about 9,500 residents, this Dayton suburb has a sparse suburban feel and an abundance of parks, bars, restaurants, and coffee shops. Most residents own their homes, and the public schools are, well, you know, above par.

20. North Potomac, Maryland

North Potomac, only about 20 miles from Washington, D.C., earned a spot on this list, thanks to awesome public schools and family amenities, not to mention a walkable and diverse environment. It’s home to about 23,700 people.

21. Narberth, Pennsylvania

You won’t get lost in the crowd in this friendly Philadelphia suburb of 4,500, which has an urban-suburban feel with historic homes, shops, restaurants, a train station, and the requisite good public schools.

22. Syosset, New York

Yet another New York City suburb makes the list. Syosset, with over 19,000 residents, has a rural vibe and all the bells and whistles of an attractive suburb. It also has a housing cost of more than twice the national median.

23. Wayland, Massachusetts

This Boston ’burb hosts 13,800 people, including a good number of retirees. People consider it safe, pretty, pricey, and calm.

24. Jericho, New York

Families will appreciate Jericho’s highly rated public schools, parks, and other amenities. The affluent Long Island hamlet of 15,000 is within reach of Manhattan.

25. Greenville, New York

Greenville, often called Edgemont, is a bedroom community of 4,700 residents north of Manhattan. It’s a magnet for parents who want good public schools.

26. Morrisville, North Carolina

Those who are moving to the Raleigh area may find Morrisville appealing, thanks to proximity to amenities and career opportunities like Raleigh-Durham International Airport, Research Triangle Park, and the Lenovo headquarters. The average home price in this community of 31,840 is around the national average.

27. Williamsville, New York

This little Buffalo village has great schools, several parks, historic landmarks, and a relatively low cost of living.

28. Long Grove, Illinois

Another Chicago suburb makes the list. Long Grove, pop. 8,400, is considered a great place to raise a family, thanks to highly rated public schools and low crime rates.

29. Mountain Lakes, New Jersey

This tiny suburb 31 miles from Manhattan is considered safe, charming, and green. It’s a wealthy pocket with a strong sense of community.

30. Chesterfield, Missouri

This sizable St. Louis suburb of 50,500 is partly situated on the floodplains of the Missouri River. There is no shortage of attractions here, including historical houses, conservation areas, and dining options.

31. East Williston, New York

Here’s another Manhattan bedroom community, this time 20 or so miles from the big city. The tiny Long Island suburb has great schools and a hometown feel. Household income and education level skew high, as they do in most of the ’burbs on this list.

32. Cascades, Virginia

Cascades is the first Old Dominion ’burb on the list of the top 50 suburbs in the U.S. The neighborhood of about 12,500 is within driving distance to Washington, D.C., and has good public schools, parks, playgrounds, and great housing options.

33. Kensington, New York

This tiny Manhattan suburb attracts families and retirees for all the reasons a ’burb bursts into the top 50. This is a highly educated, high-income enclave.

34. Ridgewood, New Jersey

This New York City suburb offers residents a sparse suburban feel, and most residents own their homes. The focus in this family-friendly village of over 26,000 is education. Home prices skew high.

35. Cary, North Carolina

Cary, with over 182,000 residents, affords fun, from outdoor concerts and movies to the annual Beer, Bourbon & BBQ Festival. Stop by the quaint downtown of this Raleigh suburb during the holiday season for a charming experience.

36. Aspinwall, Pennsylvania

This little borough on the Allegheny River is near downtown Pittsburgh. It’s historic and picturesque, with high education levels and average home prices below the national average.

37. South Kensington, Maryland

This little ’burb is near Washington, D.C., and has not-tiny home prices. With fewer than 9,000 residents, South Kensington has great public schools, a family-friendly vibe, and a nightlife scene. It looks like Mom and Dad need to book a babysitter.

38. North Bethesda, Maryland

Here’s another pocket of tranquility in the Old Line State. There are so many benefits of living in North Bethesda that it’s hard to keep track. Situated close to Washington, D.C., this suburb has its own dining, shopping, and entertainment scene.

39. Santa Monica, California

Santa Monica residents are lucky enough to live a stone’s throw from the Pacific Ocean, and many live within walking distance of the famed Third Street Promenade and its many restaurants, shops, and other amenities. Bring your wallet, of course, if you plan to live here.

40. Cave Springs, Arkansas

Move over, Hot Springs. Cave Springs made the list. Named for two caves and the water source that flows from one of them, this suburb of about 6,250 people has a small-town feel, home prices in line with the national average, and A-rated public schools.

Recommended: Home Affordability Calculator: How Much House Can You Afford?

41. Innsbrook, Virginia

Innsbrook is a thoughtfully planned community that is an ideal place to live, work, and play. Fortune 500 companies, startups, and small businesses are attracted to this Richmond bedroom community of 9,250 people.

42. Cinco Ranch, Texas

Cinco Ranch’s public schools, housing options, and job market put it on the map. A lot of house for the money combined with great outdoor and nightlife activities make this suburban swath of over 16,000 outside Houston a hot spot.

43. Fishers, Indiana

This Indianapolis suburb has an average of 187 clear days every year and an average high of 85 degrees in the summer. Many families and young professionals live in Fishers, pop. 37,835, where the average home price is below the national average.

44. Ottawa Hills, Ohio

The second Ohio suburb to make the list of the most popular suburbs in the U.S. is Ottawa Hills. This village outside Toledo is safe, well educated, affordable, and good for families.

45. Short Pump, Virginia

Short Pump, named for a short-handled water pump for horses at an 1800s tavern there, has a population of 27,500 and is home to lots of families and young professionals who own their own homes. This dense suburban neighborhood outside Richmond has good schools, great housing options, and nightlife to pursue.

46. Frontenac, Missouri

This tiny, affluent St. Louis neighborhood has a rural feel and all the things that make a suburb stand out.

47. White Rock, New Mexico

This community of 5,880 in Los Alamos County has a rural vibe, great schools, hiking trails, lots of parks, and home prices in line with the national average.

48. Stone Ridge, Virginia

Good public schools, housing options, and diversity all helped Stone Ridge land the 48th spot on this list of top U.S. suburbs. The Washington, D.C., bedroom community has about 16,600 residents.

49. The Woodlands, Texas

This sounds like a good kind of sprawl, y’all. The Woodlands, a 29,000-acre master-planned home to 118,500 people and over 2,000 businesses, has a natural forest and 140 parks and is linked by more than 220 miles of hiking and biking trails. With top schools, home prices just a bit above the national average, and nightlife, this Houston suburb scores.

50. Berwyn, Pennsylvania

This pricey Philadelphia suburb of just 3,800 residents offers an urban-suburban feel. Most residents own their own homes, and there are charming coffee shops, restaurants, and parks to visit.

Financing a Fresh Start

You might have a fave or two among the best suburbs in the U.S. Is it time to fund the dream for your family and start anew in a place you hadn’t considered?

When you’re ready to look for a mortgage, know that SoFi offers home loans with low rates, low down payments, flexible term options, and a closing time guarantee.

Applying for a home mortgage loan doesn’t have to be complicated. Start by getting a quick, no-obligation rate quote.

---

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.

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.

SOHL0822001

Read more

If you plan to take out a $300,000 mortgage, the costs of the loan can vary considerably based on your rate, term, property tax and insurance costs, and whether you need mortgage insurance.

Read on to learn how much a $300,000 mortgage could cost over the life of the loan.

What Are the Monthly Payments on a $300k Mortgage?

In April 2022, Redfin found that the monthly mortgage payment on the median asking price home had risen 39% from a year earlier, thanks to rising mortgage rates.

Ouch. But calculating the average monthly payment on $300,000 mortgages is not straightforward.

The lower the interest rate, the lower the monthly mortgage payment, holding other loan terms constant. The interest rate can be calculated differently for different types of mortgages. For instance, fixed-rate mortgages maintain a steady interest rate, whereas an adjustable-rate mortgage fluctuates over time based on market conditions.

The mortgage term also affects mortgage costs. The 30-year fixed-rate mortgage is by far the most popular choice, but a 15-year loan translates to a higher monthly cost for a $300,000 mortgage yet much less total interest paid.

Owning a home comes with annual property taxes based on the local tax rate and the home’s assessed value, which can change over time. Generally, this expense is divided across your monthly mortgage payments.

Your down payment also matters. Borrowers putting less than 20% down on a conventional mortgage usually need to pay for private mortgage insurance, often 0.5% to 1.5% of the original loan amount per year, until the mortgage balance reaches 80% (homeowner requests cancellation) or 78% of the home’s value, or the mortgage hits the halfway point of the loan term.

FHA loans require mortgage insurance premiums, which will last for the whole loan term if your down payment is less than 10%. MIP ranges from 0.45% to 1.05% of the loan balance, divided by 12 and added to your monthly payments.

Homeowners insurance is typically required by mortgage lenders regardless of the down payment amount.

How Much Income Is Needed to Qualify?

When taking out a home loan, lenders often ask for proof of consistent income, such as W-2s. But income is just one aspect of your personal finances a lender will evaluate to determine if you qualify for a mortgage on a $300,000 house.

Lenders use borrowers’ debt-to-income ratio to get a more holistic assessment of their ability to make monthly payments. DTI is calculated by dividing your monthly debt payments by your gross monthly income, then coming up with a percentage.

For example, if you gross $5,000 a month and have a $400 car payment and a $600 student loan bill, your DTI ratio is 20%.

A DTI ratio of 43% is usually the highest a borrower can have to obtain a qualified mortgage, according to the Consumer Financial Protection Bureau. However, lenders may prefer a lower DTI ratio — usually below 36% — for greater certainty that borrowers can afford their mortgage payments.

Programs like the FHA loan and Fannie Mae HomeReady® loan allow a DTI of up to 50% when compensating factors like a higher credit score exist.

Your credit history is another important factor to qualify for a mortgage on a $300k house, and will determine the rate you’ll pay.

How Much of a Down Payment Is Needed?

So how much do you have to put down for a $300k mortgage? The traditional ideal of a 20% down payment is not always necessary or doable. In fact, the latest median down payment is 13%.

How much you need for a down payment depends on the mortgage type, the lender, and if you’re planning to occupy or rent the property.

This is how much you’ll need to put down for different loan types.

•   Conventional loan: As little as 3% down for a primary residence. Buying a second home or investment property typically calls for at least 10% down and 25% down, respectively.

•   FHA loan: As little as 3.5% down if your credit score is 580 or higher. Borrowers with lower credit scores will need to put down at least 10%.

•   VA loan: Usually available with no down payment. This option is only available for active and veteran service members and some surviving spouses.

•   USDA loan: No down payment required. Eligibility is based on income and buying a home in a designated rural area.

But do down payment requirements change for different types of houses?

If you’re planning on buying a duplex or up to four units, you’d still qualify for residential financing, with the same parameters, if you plan to live in one of the units.

Recommended: A Guide to Buying a Single-Family Home

What Are the Parts of a Mortgage Payment?

What you pay to your lender each month includes more than just what you owe on the loan. The mortgage payment consists of the principal, interest, and potentially, escrow costs.

Principal

The principal portion of the mortgage payment goes toward gradually paying the amount initially loaned to you.

When you start making mortgage payments, the amount paid toward the principal is somewhat low. Over time, greater proportions of each monthly payment will chip away at the principal balance.

Interest

The interest rate — how much you’re being charged to borrow the money — is determined by the type of loan, your personal finances, and market factors outside your control.

Borrowers with high credit scores are usually able to snag the best rates. Just a 1% increase in mortgage rate can add tens of thousands of dollars over the life of a 30-year loan.

The bulk of the mortgage payment goes toward interest at the beginning of an amortized loan.

You may be able to recoup some of the interest cost through the mortgage interest deduction.

Escrow

Most lenders require an escrow account to roll tax and insurance bills into monthly mortgage payments. This includes property taxes, homeowners insurance, and, if applicable, mortgage insurance.

How Much Interest Will Be Paid on a $300k Mortgage?

If you have a fixed-rate loan, the total interest can be easily calculated for the life of the loan. Borrowers with a 30-year fixed-rate mortgage at 5.6% APR would pay about $320,000 in interest on a $300,000 home loan.

Shortening the loan term to 15 years and getting a rate of 4.8% APR would reduce the total interest paid to $121,302.

With an adjustable-rate mortgage, the interest rate can change over time with market conditions.

Try out this mortgage payment calculator to see how much you might pay in interest with different rates and down payments. You can also toggle the amortization chart on a desktop.

How Much Is the Mortgage on a $300k House?

Using the previous example of a 30-year fixed-rate loan with a 5.6% annual percentage rate, the principal and interest would be $1,720 per month, and would total about $620,000 over the 30 years. To capture the full mortgage cost, you also need to estimate the tax and insurance costs.

•   PMI (if applicable): often 0.5% to 1.5% of the original loan amount but up to 2.25%. Assuming a 1% rate, monthly PMI would be $250, with $21,303 the total amount of PMI you’d pay until you reach 20% equity.

•   Homeowners insurance: $2,305 on average annually, or $192 per month.

•   Property taxes: 0.28% to 2.49% of assessed value on average, depending on U.S. state. Most states have a homestead exemption that gives homeowners a tax break.

Recommended: A Guide to Mortgage Relief Programs

How to Get a $300k Mortgage

Prospective homebuyers can take steps to help qualify for a $300k mortgage and obtain more favorable terms.

•   Budget: First, it’s important to estimate how much you can afford.

•   Check your credit: Assess your credit history and take care of any late payments to improve your FICO® scores.

•   Get pre-approved: Starting the mortgage pre-approval process with one or more lenders gives you tentative approval for a loan amount and type, making you a more competitive buyer.

   Consider the interest rate, fees, and closing costs among lenders when shopping for a mortgage.

•   Make an offer: When you find a home that meets your needs and budget, consult with a real estate agent to submit an offer with your pre-approval letter.

•   Apply for the mortgage and get loan estimates: Now that you have a property address, you might want to request loan estimates from a number of lenders. A loan estimate is a three-page standard form that details the loan after you apply for a mortgage. Applying with more than one lender within 14 to 45 days counts as a single credit inquiry.

•   Choose a lender, and wait for the lender to verify your finances and appraise the property to underwrite the loan.

•   Close the deal: Get your cash to close and homeowners insurance ready and finalize the paperwork to close on your $300,000 mortgage.

Recommended: SoFi’s 2022 Home Loan Help Center

Where to Get a $300k Mortgage

The Consumer Financial Protection Bureau and others recommend getting quotes from multiple lenders. Buyers can choose from banks, credit unions, online lenders, and mortgage brokers to finance a home purchase.

While we’ve identified the interest rate and loan term as key information to compare, keep an eye out for fees paid directly to the lender, like origination fees and mortgage points.

The Takeaway

How much will a $300,000 mortgage cost you? The interest rate, loan term, insurance costs, and taxes will determine the amount you pay each month and over the life of the loan.

As you begin comparing lenders, give SoFi a look. SoFi fixed rate mortgage loans require as little as 3% down for qualifying first-time homebuyers.

Check your rate in just minutes

FAQ

How much is a $300,000 mortgage per month?

The monthly payment on a $300,000 mortgage depends on the loan length, interest rate, whether mortgage insurance is required, and more.

How much do I need to earn to get a mortgage of $300,000?

The required annual income to get a $300,000 mortgage is affected by your other debts and the down payment amount.

Can I get a $300,000 mortgage with a bad credit history?

You might be able to obtain a $300,000 mortgage with subpar credit, but the terms may be less competitive. For instance, borrowers with credit scores from 500 to 579 could be eligible for FHA loans, but they’ll have to make a down payment of at least 10% instead of 3.5%.

---

Photo credit: iStock/Vertigo3d

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.

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.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

SOHL0322009

Read more

Global inflation and supply chain issues have derailed a lot of people’s post-COVID plans, including renovating or remodeling their homes. The cost of remodeling and renovating has risen partly because there’s a shortage of supplies, so retailers have raised prices on the supplies and materials they do have. Plus, the Federal Reserve Bank has raised interest rates in an effort to slow inflation, meaning home improvement loans cost more. This doesn’t necessarily mean homeowners must put off renovations, but it does mean that sticking to your home reno budget may require more creativity and planning.

How to Keep Inflation From Ruining Your Home Renovation Budget

Here are some strategies for keeping inflation from blowing your home reno budget:

1. Understand Renovation vs Remodel

People use the terms renovation and remodel interchangeably, but they are not the same thing. A renovation is fixing up what’s already there; a remodel is changing what’s there. That may mean expanding a room, or converting a pantry to a breakfast nook. Remodeling is usually more expensive because it is more involved and can include the need for permits, whereas renovations are often smaller projects that you can sometimes DIY. Before getting started with either, it can be smart to budget for the level of transformation you can reasonably afford in this economic climate.

2. Invest Wisely

One thing experts agree on is that the best home renovation or remodel investments are projects that can raise the value of a home at resale. Some of these projects include a kitchen or bathroom makeover, expanding outdoor space, and even just replacing the garage door. SoFi’s home improvement ROI calculator can help you identify some of these home investment opportunities.

3. Finance Carefully

Since you’re investing in your home, especially with the idea of improving its value, it’s smart to look for the right partner to help you strategize how to finance your project. It’s possible your project may be eligible for a home equity loan where you borrow against the value of your home for funds. Another financing option is a personal loan. Unlike the home equity loan, a personal loan for home improvement projects requires no collateral.

💡 Learn more about how home improvement loans work.

4. Have a Plan

Home renovation projects notoriously run over budget. Global supply chain issues are making that even worse. Many projects must happen according to a specific sequence, like receiving a delivery of plumbing supplies and scheduling workers before you gut the bathroom. If something goes wrong with the sequencing, it might mean you lose your workers to another job that’s ready to go, or you have to pay extra to expedite shipping. These hold ups can be expensive. That’s why it’s important to plan meticulously before you begin.

5. Be Flexible

Can’t get the Italian granite you were eyeing for the kitchen counters? What about slate, which can be a fourth of the price and can look just as stunning. Or Sintered Stone? Or steel? Deciding from the beginning to be flexible on the things you can, and uncompromising only on the materials or designs that really matter to you, can save you thousands.

6. Consider High Quality Items

Because there is generally lower demand for slightly higher quality and pricier items, those appliances and materials haven’t risen as much in price . So you might have an opportunity to get something you might have considered out of your price range for about the same as the more standard one.

7. Oversee the Project

The typical contractor fee for most general contractors to oversee renovation projects is 20% of the project , so if you’re planning a $50,000 remodel and you do the contracting yourself, you could save $10,000 right off the bat. But it will be your job to source and schedule the experts you need — plumbers, electricians, etc. — and oversee the work. Just remember: It’s not uncommon to pay to have a job done twice during renovations, so it’s wise to stay on top of workers if you choose this option.

8. Do Something Yourself

Using skills you already have, or picking up a few through online videos and in-person workshops, can save you some time and money. If you decide you can do the job yourself, and it isn’t one that requires permitting and licensing, you may be happy with your results. Doing it yourself does have its risks such as not ending up with the quality you could have by using a professional. On the other hand, if you have some skills, you might do a better job than a mediocre contractor who isn’t as invested in your home as you are.

9. Vet Your Craftsman

Hiring someone who does a poor job or damages your home is a common risk of home renovation projects. Shopping for carpenters, painters, plumbers, and others solely on the basis of price can very easily lead to problems, which can require more time and investment on your part to correct. Choosing a contractor that’s skilled and reliable requires taking the time to look at portfolios, ask questions, and seek recommendations and reviews.

10. Collect a few Bids

It can take more time, but getting bids from several different companies is a smart way to help keep your renovation costs low. Not only does this type of “shopping” give you options for how much you can pay for specific tasks, but it can also give you an idea of how different contractors would approach your project.

11. Shop Wisely

It can be easy to order items online or pick up everything from your local home remodeling store, but high shipping costs and limited in-store options can actually increase your expenditures. If you’re looking to minimize costs, settling for what’s most convenient isn’t likely to help you. Instead, taking the time to shop around thoroughly and think creatively about your renovation plans can help save you a bundle.

12. Price Match

If you find an appliance online that you really love, you may want to try bringing a copy of that ad to your local retailer, and asking them to match the deal. This way you not only save yourself shipping costs, but you also get the best price for the item you prefer.

13. Try Repurposing

Before you spend money replacing what you have, consider transforming your items instead. Perhaps you could refinish or paint your kitchen cabinets instead of replacing them. Changing the hardware and interior panels are also simpler options that can reflect your style. Sometimes small changes can result in big transformations.

14. Consider Salvaged Materials

You can sometimes save big using salvaged materials. Secondhand shops like Habitat ReStores can sell old kitchen cabinets, flooring, light fixtures, plumbing fixtures, and furnishings for a fraction of the original sale price. You can even find unused paint, hardware, and art. For additional options, online sites like Craigslist and Facebook Marketplace can provide useful, previously used items as well.

15. Be Creative Side

Pinterest can be a great source of budget friendly renovation ideas. You can spend a few hundred dollars on a mason jar light fixture; or you could make your own. How about creating a room divider with used pallets? Necessity is often the mother of invention, and you may discover a creative side you didn’t know you had by looking for creative design solutions.

The Takeaway

Inflation and supply chain problems can make home renovations and remodeling on a budget much more challenging, but not impossible. If you choose the best projects for added value; plan and shop for materials and craftspeople with care; and are willing to be creative and flexible, you can wind up investing less money, time and worry.

If your home renovation budget is a tad bit short of your dream, a home improvement loan from SoFi could give you the extra boost you need. With no collateral, no fees and the opportunity for same-day funding, SoFi can help get your project up and running in no time.

Explore how a home improvement loan can kick off your home renovation.

---

Photo credit: iStock/LightFieldStudios

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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.

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.

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.

SOPL0622011

Read more

Maybe you’ve just bought a house, or maybe you’ve had your house for decades and love everything about it — except for the extremely outdated kitchen, built before the days of marble top counters, stainless steel appliances, and kitchen islands. Renovating your kitchen can get expensive fast, but with inflation, materials cost even more than usual, so it can be tougher to control expenses. Luckily, there are a few strategies you can use to get the updates you crave, without emptying your pockets.

How to Keep Inflation From Ruining Your Kitchen Renovation

1. Setting A Budget

Like most people, you probably already have a budget in mind. That’s a good start, but even with a spending limit in place, it’s smart to use a tool like this home renovation cost calculator to get an estimate of what your kitchen reno will ultimately cost, and make sure your budget will truly cover it. These calculators allow you to choose from basic to extremely bespoke changes, and they consider the cost of labor and raw material, generally with a 20% margin for the contractors. (And contractors can cost much more than you may expect!)

2. Being Flexible

Be flexible about your upgrades. It’s not uncommon to have to cut back on some of your plans due to price hikes, sold out materials or surprise developments during construction. Expect to make compromises. If your dream project begins to get pricey, consider focusing on just one or two aspects of your reno that are most important to you, and saving other changes for another time.

3. Getting Creative

To keep your costs down, try thinking outside the box. Say the countertop you really want is way out of your budget. Perhaps your contractor may know where to find salvaged materials at a deep discount. Or the cabinets you had your eye on have jumped in price. Opting to reface instead of replace your existing cabinetry could be a reasonable, cost-effective approach. Being open to these kinds of options can really help keep your spending in check.

4. Doing It Yourself

DIY can be a great way to keep inflation from ruining your kitchen budget … if you know what you’re doing. There are millions of how-to videos online with detailed instructions on everything from putting in new flooring to installing sinks. One of the largest costs of any renovation is labor, and you can reap some significant savings by doing some of the things yourself, and saving the really hard stuff for a contractor. Keep in mind, though, that taking on tasks outside of your abilities could end up costing you in the end, so be realistic about what projects you can handle and which are better left to the professionals.

💡 Recommended: How Much Does it Cost to Remodel a House?

5. Considering Temporary Fixes

Can you update your cabinets and countertops with removable materials? Or perhaps a new coat of paint and some new pulls? Peel and stick wallpaper has become particularly popular due to its variety and flexibility. It comes in countless prints from wood grain to marble, and can be used as a backsplash, on countertops, kitchen cabinets, and yes, walls. Incorporating one of these simple changes can give your kitchen a fast and financially friendly refresh.

6. Renovating vs Remodeling

Yes, there’s a difference, and the distinction is important. If you are remodeling, you are changing the physical space, breaking down walls, removing cabinetry, etc. Remodels are almost always more labor intensive, require more materials, possibly permits, and definitely more of your contractor’s time, so they are almost always more expensive, even without inflation. Renovating, however, means you are updating what already exists. In this scenario, it’s often easier to pick your battles — keep the cabinets but change the countertop, for instance. So, if you really want to keep costs down, you may want to consider renovating cosmetic features instead of remodeling.

7. Consider a Loan

If you can’t wait to renovate but don’t have all the cash you need, you could consider getting a personal loan to cover the costs. If you’ve made enough mortgage payments, tapping into your home equity could be another option for funding your project. There are both benefits and drawbacks to borrowing so be sure to read the fine print, keep a close eye on interest rates and do your best to keep your project on track and under budget.

8. Increase Your ROI

Tapping into a mortgage refi or getting a personal loan might seem risky, but it can make sense if you’ve considered how much your home improvement may boost the value of your home when it comes time to sell it. Using a home improvement ROI calculator can help you estimate how much value you can add to your home after a renovation or remodel.

Another metric you may want to consider is the return on investment, for a particular project. Boosting your curb appeal — that is, the exterior of the house — can give you the most bang for your buck. So can things like replacing a garage door, sprucing up the yard and landscaping, and even painting the exterior of the house. And even a minor kitchen renovation can boost your home’s value, potentially offsetting any inflation costs you may incur.

9. Choosing The Right Contractor

Once you’ve decided what you want to do and what you can afford, it’s time to find a good contractor to execute your vision. This one decision can make or break the entire project, so it’s wise to ask for personal referrals. If that’s not an option, you can always search the top-reviewed contractors in your area. And just like comparing prices at the grocery store, getting estimates from at least three contractors can help you save.

The Takeaway

Inflation might be sky high right now, but it doesn’t have to stop you from having the kitchen of your dreams. Whether you are going for a full remodel or a few cosmetic changes, there are ways to update the look of your kitchen without breaking the bank.

And should you decide to pick up a personal loan to cover those costs, be sure to budget a little extra for the “just-in-case.” SoFi’s home improvement loans range from $5K to $100K and can cover just about any kitchen project. Plus, with no collateral and same day funding, you can kick off your project sooner and can find yourself cooking in your new kitchen in no time.

Learn how a SoFi home improvement loan may help you fund your remodel in no time.

---

Photo credit: iStock/sturti

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.

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.

SOPL0622012

Read more