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The wedding dress has been altered, the tuxes are pressed, and the rings are tucked safely in velvet boxes. Chefs are preparing an elaborate meal, bartenders are ready to fill Champagne flutes, and a DJ is putting the final touches on his playlist. The venue is decorated with flowers and candles, and the hotel is packed with happy guests.

The only question is: Who’s paying for all this?

Weddings are notoriously expensive. But they are also an important and romantic day in a couple’s life. Who foots the bill for this party has changed over the years. Below, we’ll break down who pays for which wedding expenses in 2023 — and who traditionally paid in previous generations.

Who Pays for the Wedding in 2023?

In the past, it’s been the tradition for the bride’s family to pay for nearly the entire wedding, and the groom’s family to pick up smaller expenses such as the rehearsal dinner. In some cases, families still follow these traditions, but increasingly people are embracing new ways of covering these costs.

Nowadays, wedding expenses can be split any number of ways, and couples are exploring many different ways to pay for their big day:

•  Independent couples may decline help from parents and instead pay out of pocket or borrow money to cover the wedding costs.

•  Both families and the bride and groom may decide to split the costs. Sometimes grandparents or other extended family members will offer to pay for a portion of the wedding.

•  If the groom comes from a wealthier family, his parents may chip in beyond their traditional requirements.

•  Since the legalization of same-sex marriage in the United States, LGBTQ+ couples are creating their own traditions since there’s not a single bride or single groom at the altar.

That’s the beauty of your wedding day: It’s yours. Many brides and grooms are embracing the fact that they no longer have to follow outdated customs if they don’t want to.

For others, however, tradition matters — and that’s OK, too. If you’re planning to follow cultural traditions to a T when funding your wedding, how do you split the bill?

Let’s break down who traditionally pays for the wedding and other related expenses.

💡 Quick Tip: Need help covering the cost of a wedding, honeymoon, or new baby? A SoFi personal loan can help you fund major life events — without the high interest rates of credit cards.

The Bride’s Family

Historically, the bride’s family pays for most of the wedding expenses. Depending on the size and extravagance of the wedding, it can add up.

If you’re the parents of the bride who plan to foot the bill, but you don’t have enough money in savings, it might be worth taking out a personal loan to cover the wedding expenses. In the long run, it’s typically a cheaper option than putting everything on a credit card.

While the bride’s family traditionally takes care of many of the wedding expenses they don’t pay for everything. And every wedding is a little different. You may choose to skip certain items or events (and you may find yourself adding, too). Here’s what the bride’s family typically covers:

Expenses the Bride’s Family Is Traditionally Responsible For

•  Engagement announcements

•  Engagement party

•  Wedding planner

•  Invitations, save-the-dates, and wedding programs

•  Venue for the ceremony

•  Venue for the reception

•  Flowers and decorations

•  Wedding photographer and videographer

•  Wedding dress

•  Transportation and lodging for the bridesmaids

•  Transportation and lodging for the officiant

•  Food at the reception

•  Wedding cake

•  Brunch the morning after the wedding

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The Groom’s Family

If you have only sons and think you’re off the hook, don’t get too excited. You still have to cover some costs at the wedding as the parents of the groom.

Though less extensive, the groom’s family’s financial burdens can add up. Personal loans are also an option for the groom’s family; in fact, weddings are one of the most common uses for personal loans.

Here’s everything the groom’s family traditionally pays for at a wedding.

Recommended: Tips for a Dream Wedding on a Budget

Expenses the Groom’s Family Is Traditionally Responsible For

•  Rehearsal dinner

•  Marriage license

•  Officiant’s fee

•  Boutonnieres for the groom, his groomsmen, and family members

•  Bouquets for the bride and bridesmaids

•  DJ or band

•  Transportation and lodging for the groomsmen

•  Alcohol at the reception

•  Honeymoon (in some cases)

Recommended: Affordable Wedding Venue Ideas

The Bride

Many women have dreamed of their wedding days since childhood. But as little girls, they probably didn’t think much about the actual wedding costs they’d have to pay themselves — and there are quite a few.

Expenses the Bride is Traditionally Responsible For

Traditionally, the bride pays for her future husband’s wedding ring, as well as a special gift for him. She may also buy gifts for her bridesmaids. In some cases, she’ll pay for the flowers, and she usually pays for her own hair and makeup.

Nowadays, however, brides may step up and pay more to help out her parents. Many brides choose to do this in part so that they can feel like they have more say in determining the plans for their special day.

People are also getting married later than they did in past generations (the average age for women is now 30 and for a man it’s 32), which means brides (and grooms) may feel more financially capable of covering the expenses themselves.

The Groom

The groom isn’t off the hook either. At weddings, he’s responsible for a few purchases as well.

And even though he and the bride may have separate wedding responsibilities, as a newly married couple they are likely planning to combine their finances, if they haven’t already. Even if they don’t have a joint bank account, the bride and groom are essentially covering their wedding expenses together.

Recommended: Personal Loan Calculator

Expenses the Groom Is Traditionally Responsible For

The first big expense a groom encounters is the one that sets the whole wedding in motion: the engagement ring. The average cost of an engagement ring is now about $6,000. Grooms who don’t have that kind of cash lying around often turn to engagement ring financing options, including personal loans.

While the ring is often the groom’s biggest expense, he’s also responsible for the bride’s wedding band, gifts for his groomsmen, a gift for his bride, his own tux, and the honeymoon — if his parents aren’t footing the bill. (The honeymoon isn’t cheap either; the average cost of a honeymoon is now $5,100.)

Some grooms may also pay for the license and officiant, instead of asking his parents to cover that cost.

Who Pays for Other Wedding Costs

There is also the cost of being in someone’s wedding. For instance, groomsmen and bridesmaids are typically responsible for paying for their own tuxedos and dresses.

These two groups also pay for the bachelorette and bachelor parties for the bride and groom. Bridesmaids may also need to pay for their hair and makeup on the big day.

As someone attending a wedding, you should give a gift, unless the couple has discouraged this. And if it’s a destination wedding, you’ll have to pay your own travel costs, which can include hotels and transportation.

Wedding Costs

Now we know who traditionally pays for what at weddings — and that many modern couples are foregoing these traditions. But how much does a wedding cost?

Currently, the median cost of a wedding is $10,000, according to a recent SoFi survey. For couples who are paying without their families’ help, a personal loan is the best route, if they don’t have the money in savings or have that money earmarked for buying a house or starting a family.

Are you considering taking out a loan to cover the cost of your wedding? Here are the typical personal loan requirements you’ll need for approval.

The Takeaway

Weddings are expensive, and traditions usually put the bulk of the financial burden on the bride’s family. However, many couples are breaking from tradition nowadays, paying for wedding expenses themselves or splitting the cost among family members more evenly — or in a way that reflects each family’s means.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

FAQs

Who pays for the wedding reception?

Traditionally, the bride’s family pays for most of the wedding reception, including the venue, food, and decorations. However, the groom’s family usually pitches in by covering the music and the alcohol. Increasingly, couples are choosing to pay for their wedding receptions themselves or splitting the cost with their parents.

Who pays for the engagement party?

The bride’s family is traditionally responsible for paying for the engagement party. Nowadays, however, engaged couples often pay for such parties on their own.

Photo credit: iStock/Halfpoint

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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.

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Adding a garage to your property can make your life easier while also adding value to your home. But building a garage can be expensive — and if you can’t afford the cost upfront, some type of financing will likely be required in order to move forward with the project.

The good news is homeowners have several options to choose from so they can get the garage they want now and pay for the project over time — including a personal loan, a home equity loan or line of credit, or a cash-out refinance.

But how do you decide which type of garage financing is best for you? Read on for a breakdown of the different options, some of their pros and cons, and how to choose the right financial product for you when you decide to build your new garage.

How Do People Afford to Build a Garage?

Most people probably can’t afford to add a garage to their home without borrowing at least part of the money for the build. And even those who have enough cash to cover the cost might not want to dip into their savings to foot the entire bill upfront.

There are several ways to finance a garage build, and the option that works best for you may depend on several factors. Before you make your choice, it can be good idea to look at:

•  How much equity you have in your home, and if you want to tap that equity for funding.

•  Your credit score nd what kind of interest rate you might be offered if you apply for a loan.

•  How long you want to make payments, and how those payments might affect your other goals.

•  How much you expect the full cost of your project to be, and how much of that you want to finance.

💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. SoFi personal loans come with no-fee options, and no surprises.

What Is the Average Amount Needed to Build a Garage?

According to HomeAdvisor, the average cost of building a garage is about $28,326. The typical price range in 2022 was between $16,424 and $40,287.

Of course, your costs may vary significantly based on the size of the garage, the materials you choose, labor costs in your area, and the type of structure you plan to build. Here’s a breakdown of what some garage projects can cost:

Carport

Average cost: $2,400 to $8,400 for one car; $4,000 to $14,000 for two cars, fully installed

A carport can be a great option if you’re looking to protect your car from the sun, snow, sleet and hail, pollen, bugs and birds, etc. A carport is typically less expensive than a fully enclosed garage.

Square footage is usually the most important factor when it comes to determining price. A fully installed (parts, labor, etc.) 12-foot-by-20-foot carport, built for just one car, averages between $2,400 to $8,400; while a two-car, 20-foot-by-20-foot carport would be around $4,000 to $14,000.

Here are some other factors that can impact the cost:

•  Whether the carport is temporary or permanent

•  The roofing and other materials used

•  Whether it’s a prefab or custom build

•  Whether it’s freestanding or attached to another structure or a concrete foundation.

Attached and Detached Garages

Average cost: $10,500 to $27,000 for one car; $14,500 to $40,300 for two cars, fully installed

If you’re looking to keep tools, bikes, or even a washer and dryer in your new space, along with your car or cars, you’ll probably want a completely enclosed garage with doors you can lock.

Your storage needs will help determine the size of the garage you build — and, yes, that size will figure into the cost. A standard one-car garage is 12 to 16 feet wide and 20 to 24 feet long, while a two-car garage is usually 22 to 26 feet wide and 20 to 24 feet long.

Keep in mind that if the garage is attached to your home, you may pay 10% to 15% less than you would if the garage is detached. The materials you choose for the walls and roofing will also influence the cost. And you can expect the price to increase if you add windows, plumbing, and/or electricity.

Storage Shed

Average cost: $2,500, fully installed

If you’re just looking for additional storage and not a place to park your car, a shed might be a more affordable option. The average price range for building a shed ranges from about $200 (for a small prefab shed) to $30,000 (for a custom structure that could serve as an office, man cave, or she-shed).

The size of the shed (both square footage and ceiling height) will make a big difference in the cost, as will the materials you choose, the type of foundation you use, if the project requires a permit or professional installation, and if you want to add plumbing and electricity.

Garage Doors

Average cost: $1,200, fully installed

The door you choose for your new garage can be important to your home’s curb appeal, but you may also want to consider energy efficiency and how the door will hold up against rough weather — or energetic kids who use it as a backdrop to their sports practice.

Factors that can affect the cost of a garage door include the style, materials, size, and the type of installation required. The cost can also increase if you opt for an automatic door with sensors, a keypad, and other bells and whistles.

Installation Costs

Unless you plan to build your garage yourself, your labor costs could add up to at least half of your project’s price tag — and your location could be an important factor.

HomeAdvisor found, for example, that if you live in Austin, Boston, or Los Angeles, you could end up paying twice as much for your garage as you would if you lived in Chicago, Oklahoma City, or Kansas City, Mo.

Permit Fees

Average cost: $150 to $500

Here’s a cost homeowners tend to overlook: Almost any building project requires a permit.

Permitting needs and costs can vary depending on the type of project and where you live. If you’re working with a contractor or installation company, they should be able to tell you what’s required and the cost. You also can contact your local government agency for information.

The average cost for a garage permit is $150 to $500, but if you’re adding electricity, plumbing, or air conditioning, the price could be as much as $800 to $1,500.

Recommended: The Cost of Buying a Fixer-Upper

Garage Builders Financing Options

Because the cost of building a garage can get pretty expensive, homeowners often decide to use some type of financing to pay for the project.

There are several options available if you prefer to break down the cost of your project (large or small) into affordable monthly payments. Here are some common choices:

Personal Loan

With a personal loan, you’ll get a lump sum of money that can be repaid in monthly installments, usually at a fixed interest rate that’s based on your credit score, income, and how much debt you’re currently carrying. This type of financing can be used for just about anything, but home improvement projects are among the most popular uses of a personal loan.

Borrowers typically aren’t required to provide collateral to get a personal loan (unlike a home equity loan or HELOC). This can make the approval process go faster, which means you can get your money sooner. Another plus: You won’t be putting your home or any other asset at risk if you can’t make your loan payments. But there’s also a downside in that your interest rate may be higher than it would be with a secured loan. And you may have less time to pay back the money you borrowed.

Recommended: 11 Types of Personal Loans and Their Differences

Home Equity Loan

Borrowers who have built up some equity in their home (at least 10% to 20%) may want to look into financing a garage build with a home equity loan. With this type of loan, you’ll get your money upfront and pay it back, with interest, in fixed monthly payments.

The upside to a home equity loan is that a lender may offer a lower interest rate because the financing is secured with your home as collateral. The downside, of course, is that if you default on the loan, the lender could choose to foreclose. And if you sell your home, you’ll be expected to pay off your loan balance. You also can expect a more complicated application process and to pay closing costs and other fees with this type of loan.

HELOC

A HELOC is like a home equity loan in that it allows you to borrow against the equity you have in your home. But with a HELOC, you don’t have to borrow all the money at once — you can use your line of credit to borrow just what you need as the project moves along. And you’ll pay interest (usually a variable rate) only on the amount you currently owe, much like a credit card.

The major drawback is that your home will serve as collateral for the line of credit, so if you default, the lender could foreclose on your home. And if interest rates increase, your loan payment could end up being higher than the amount you originally budgeted.

203(K) Loan

The Federal Housing Administration offers 203(K) loans as a way for current homeowners and homebuyers to refinance their home and roll the costs of a renovation into the mortgage. Because they’re backed by the FHA, these loans can come with lower interest rates and qualifying may be easier. But your home and your garage project will have to meet FHA requirements.

Construction Loan

Construction loans traditionally have been used to finance the building of a new home, but they also may be used to make substantial renovations to a current home.

These loans typically have a variable interest rate, and because they’re unsecured, the rate may be higher than other types of garage financing options. Construction loans also have shorter terms than most loan options: They generally must be rolled into a mortgage or paid off within a year.

Cash-out Refinance

With a cash-out refinance, borrowers take out a new and larger mortgage on their home, then pay off the old mortgage and keep the difference to pay for their renovation project.

If you can find a competitive, fixed interest rate and other loan terms that work for you, this might be an alternative worth considering. But again, the loan is secured with your home as collateral, the application and approval process can be more complicated and slower than with other options, and there may be closing costs and fees.

What Type of Loan Is Best for Building a Garage?

If you’re hoping to build a garage, it makes sense to thoroughly research all the financing possibilities. But you’ll likely find that a personal loan is among the top contenders.

Benefits of a Personal Loan

There are several benefits to using a personal loan to finance a new garage.

•  You can borrow a fairly high amount (up to $100,000, for example, with a SoFi personal loan).

•  With an unsecured personal loan, you won’t have to put up your home or any other asset as collateral.

•  If you have a good credit history, you should qualify for a competitive interest rate.

•  Personal loans typically come with a fixed interest rate, which can make budgeting easier.

•  If you make timely payments and pay off the loan on time, it can help your credit.

•  The application process can be faster than other options, so you’ll get your money sooner.

Qualifying for a Personal Loan

Personal loan requirements can vary from one financial institution to the next, but here are three things lenders typically look at when reviewing an application:

•  Credit score and credit history: The higher your credit score, and the cleaner your credit report, the better your chances of qualifying for a loan with a competitive interest rate.

•  Employment history and income: Borrowers should be prepared to provide recent tax returns, bank statements, and other documents to verify their employment and their wages or salary.

•  Debt-to-income ratio: Lenders can have different requirements, but generally, the lower your debt-to-income ratio (how much you spend on monthly debt payments relative to your income), the better chance you’ll qualify for the loan terms you want.

Things to Consider When Applying for a Personal Loan

Before you apply for a personal loan, it can be a good idea to think about:

•  How much you need: With a personal loan you’ll receive a lump sum of cash, so it can be helpful to have an estimate for your project’s overall cost — and how much what you’ll need to borrow — before you begin researching lenders.

•  How much you can afford to pay back each month: You may want to run the numbers to see how your loan payments will fit into your monthly budget.

•  How much time you’ll need to repay the loan: If you have big dreams — and a big price tag to match — you may want to look at a long-term loan (five to seven years) so the payments don’t overwhelm you. Keep in mind, though, that the longer the loan term, the more you can expect to pay in interest.

•  Where you can get a personal loan that’s a fit for your needs: When you’re ready to look for a loan, your focus will likely be on finding the most competitive interest rate. But when you’re deciding where to get a personal loan, don’t forget to consider other costs — including origination fees, late payment charges, and prepayment penalties.

Alternative Garage Builders Financing Options

There are a couple of alternatives to financing your garage build with a loan or a secured line of credit. And like the other options listed here, they, too, have pros and cons.

Cash

If you have plenty of money to finish your project without financing, and you want to avoid interest charges, paying cash is definitely an option to consider. But if it would require pulling money from your emergency fund, or affect your budget or other important financial goals, you might want to look at other options. Of course, you could save up until you feel comfortable about paying for the project with cash. But depending on the total cost of the project, that might mean a long delay.

Credit Card

A credit card is a convenient way to pay for costs as you go, and this type of financing could be easier to obtain than a secured loan or secured line of credit. But unless you’re eligible for a card with a low or 0% introductory rate — and can pay off your balance before the introductory period expires — the interest rate could be much higher than with other borrowing options. If you’re building a storage shed or DIY carport, a credit card might be an appropriate financing tool. But for a pricier project, you may find there’s a more affordable option.

The Takeaway

Building a garage — whether it’s a prefab shed, standalone carport, or attached garage — can be an expensive project. Depending on the scale of the project and where you live, you could easily spend close to $30,000.

Most people opt to finance their garage build project, either with a personal loan or a line of credit. This allows them to break up the cost over several months and keep their cash in savings for a rainy day.

If you know what kind of garage or similar structure you hope to build, and you need or want to find financing to help pay for it, a personal loan can be a solid option.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

FAQ

How do people afford to build a garage?

If paying cash to build a garage isn’t feasible, there are several financing options available, including a personal loan, home equity loan, or home equity line of credit (HELOC).

Can you finance a garage?

You can finance a garage if you can’t pay cash — or don’t want to. There are several financing options available, whether you’re planning to DIY a small carport or you’re working with a contractor to install a super-sized garage with all the amenities.

What type of loan is best for building a garage?

If you have solid credit, a personal loan may be the best type of financing for building a garage. You can borrow the money you want upfront, get the funding quickly, and make fixed-rate monthly payments while enjoying the benefits of adding a garage where you can keep your car, boat, tools, toys, and more.

Photo credit: iStock/PC Photography

SOPL0423003

The cost to replace a chimney ranges from $1,000 to $15,000, depending on the type and size of the chimney. You can install a smaller or prefabricated chimney for $1,000 to $5,000, but a full masonry chimney replacement cost can reach $15,000.

Below, we’ll explain new chimney cost factors, break down labor and materials expenses, discuss financing options, and help you determine if you might be able to replace the chimney yourself.

Chimney Replacement Costs: An Overview

How much does a chimney replacement cost? Anywhere from $1,000 to $15,000. A full chimney replacement is on the higher end of that range while a partial replacement — or a basic prefab chimney installation — is on the lower end.

In some cases, it might be possible to repair the chimney instead of replacing it. Chimney repair costs typically range between $1,000 and $3,000, though it varies depending on the extent of the damage.

Recommended: The Ultimate Home Maintenance Checklist

Full Chimney Replacement

A full chimney replacement costs between $5,000 and $10,000 — or up to $15,000 in some cases. Prefabricated chimneys are the lowest-cost option. You’ll pay moderate prices for a metal chimney and the highest prices for a brick chimney.

Partial Chimney Replacement (Rebuild)

You may only need to replace part of a chimney, like the stack, which extends above the roof. In other cases, you may need to pay for the repair of specific elements, like collapsing mortar, a damaged chimney crown, or a cracked flue.

Partial chimney replacement costs may top out at $5,000 while repair typically ranges between $1,000 and $3,000 per job.

Recommended: Home Improvement Calculator

Chimney Installation Labor Cost

Labor makes up a large portion of the cost to replace a chimney. Depending on your geographic location, if you can reach the chimney by ladder or you need scaffolding, and the type of chimney being installed, labor rates may range from $50 to $150 an hour for an experienced mason.

You will usually need to hire a structural engineer before the mason can begin their work, which adds to your overall labor costs. Depending on where you live, that can cost around $500.

Chimney Installation Material Costs

Material costs vary depending on the type of chimney being replaced, rebuilt, or repaired. Prefab chimneys have lower material costs while masonry chimneys require more expensive materials like bricks and mortar.

Chimney Installation Cost Financing

Paying for a new chimney — or even a more basic chimney repair — can be difficult on a tight budget. If you don’t have the money in emergency savings, you can explore other options like:

•  A payment plan with the contractor: Ask the contractor if they can set you up with a payment plan over a set number of months, rather than requiring the full payment all at once. Costs may be higher if you go this route.

•  A credit card: Some contractors will let you pay with a credit card but be careful. Your credit card may have a high APR, and if you can’t afford to pay the full bill at the end of the month, you could end up paying a lot of interest, which will make the new chimney even more expensive.

•  A home improvement loan: Home improvement loans are a low-cost option for homeowners. These personal loans typically have a lower interest rate than your credit card, and you can choose repayment terms — often three to five years — that make sense for your budget. A personal loan can be a cost-effective way to pay for common home repair costs.

•  Home equity loans: Homeowners can also tap into their home equity with a home equity loan or home equity line of credit (HELOC).

Before you decide on the best financing option, you will want to compare the difference between home equity loans vs. home improvement loans.

Can I Replace the Chimney Myself?

A chimney replacement requires special skills and training. A lot can go wrong if you install or repair a chimney incorrectly. It could become a fire hazard or potentially collapse. No matter your DIY skills, we highly recommend hiring a qualified mason to tackle all repairs and replacements.

Recommended: How to Keep Inflation From Blowing Your Home Reno Budget

What Factors Impact a Chimney Replacement Price?

Several factors can impact your overall chimney replacement cost, including:

•  Permits needed: You’ll almost always need to get a permit for larger chimney replacement projects. Permit costs vary depending on your state and municipality.

•  Level of work required: Wholesale chimney replacements cost significantly more than minor work. For example, chimneys may just require some repointing or tuckpointing to keep them in good shape, or you may need to replace the crown or cap or only rebuild the stack. If you have to replace the whole chimney, it may require demolition, which can be expensive. Talk with your contractor about the extent of the work to get a better idea of the total chimney installation cost.

•  Type of chimney: Prefab chimneys are the most affordable to install. You’ll spend more to replace a metal chimney, but the most expensive type of chimney to replace is a brick one.

•  Size and location: Larger chimneys will cost more to replace than small ones. Chimneys that are easy to access (by ladder, for example) are also more affordable to repair or replace. If the positioning of the chimney makes it harder for the contractor to access, labor costs will be higher.

Signs Your Chimney Needs to Be Replaced

How do you know when it’s time to replace your chimney? Here are a few signs to watch for:

1.   Crumbling brick: If the brick is visibly crumbling or deteriorating, call a mason quickly to determine the extent of the damage and begin the repair or replacement work.

2.   Leaks: If your chimney is the source of leaks (look for water damage to the surrounding walls and ceiling), it’s time to call a contractor to look at it.

3.   Cracks: It’s good practice to have your chimney inspected each year. During the inspection, the contractor will look for large cracks. These could be a sign that it’s time to repair or replace the chimney.

The Takeaway

Chimney replacement costs can range from $1,000 to $15,000 — it’s not a cheap project, but luckily, it’s also not a common one. Get your chimney inspected every year, and keep up with regular maintenance and cleaning. Unless there’s unexpected storm damage or the chimney is old, you may not have to replace the chimney the entire time you live in your home.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

FAQ

How long does it take to replace a chimney?

Basic chimney repairs can be quick: A professional should be able to repair a partially damaged chimney in one to four days. Significant damage may lead to longer timelines — in some cases, it might take weeks or even months to repair and rebuild a chimney.

Can I replace my chimney myself, or do I need to hire a professional?

Replacing and repairing a chimney requires specialized knowledge, skills, and equipment, not to mention physical strength. If you make even a small mistake when replacing your chimney, you might accidentally cause a leak, inadvertently create a fire hazard, or build a structurally unsound chimney that could collapse. Always hire a professional for this work.

What qualifications should I look for in a chimney replacement contractor?

When looking for a contractor to work on your chimney, always confirm that they are licensed and insured. You should also verify that they’re certified by the Chimney Safety Institute of America.

Ask the contractors if they offer warranties or guarantees for their work and read reviews online to make sure they provide quality services. You can also ask them for references.

How do I compare quotes from different chimney replacement contractors?

Before getting quotes from any chimney replacement contractors, read online reviews and ask the contractors about their licenses, insurance, and certifications. Only get quotes from qualified contractors.

When comparing quotes, look not just at the overall cost but also the timeline to ensure they can replace your chimney quickly, if needed. Also verify what is and isn’t covered in the quote. For example, has the contractor included the necessary permits, or is that a separate cost not part of the estimate?

You’ll also want to ask about their payment schedule and how they prefer to be paid (cash, check, or credit card, for example).

Are there permits or inspections required for chimney replacement, and how much do they cost?

When replacing a chimney, you almost always will need to get a permit and an inspection. The costs will vary depending on where you live, but you might pay up to $500 for an inspection by a structural engineer, and permits can reach $150.

How often should I replace my chimney, and what factors affect its lifespan?

A well-built chimney should last several generations of homeowners. In theory, you may never need to replace your chimney (but regular inspections are a good idea). If you do replace your chimney, you likely won’t need to replace it again as long as you’re in that house.

That said, certain elements may need to be repaired or replaced more frequently. Chimney liners, for instance, last 15 to 20 years, and mortar lasts 25 to 30 years.

Extreme weather, like high and low temperatures, hail, and earthquakes, may shorten a chimney’s lifespan, as can exposure to water. As your home settles over time, it may also lead to premature cracks in your chimney.

What are the risks of not replacing a chimney that is in disrepair?

If you ignore the signs that it’s time to replace or repair your chimney, you’re exposing your home to a lot of risk. Water could more easily get into your home, leading to mold and mildew. Walls, ceilings, and floors could deteriorate over time, and the inner workings of your chimney would be exposed to rust. Eventually, your chimney might collapse, leading to much more expensive and extensive structural damage to your home.

Photo credit: iStock/AntonioSolano
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.

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If you’re like many Americans, you may have student loans, and you may also hope to own your home at some point. You may worry that carrying student debt and buying your own place are mutually exclusive, but that’s not necessarily the case.

Yes, it can be true those with higher student loan balances may be less likely to be homeowners than peers with lower amounts of debt. However, understanding your debt-to-income ratio and other aspects of your financial profile can be vital. This insight can both inform how much room there is in your budget for a home loan payment and highlight how to improve your odds of being approved for a mortgage.

With this guide, you’ll learn the ropes, such as:

•   Understanding how mortgage lenders evaluate your finances

•   How your student loans impact your profile

•   Steps you can take that may boost your chances of getting a home loan application approved when you have student debt.

Getting a Mortgage When You Have Student Loans

Student loans are a familiar financial burden. Currently, Americans hold in excess of $1.7 trillion in student loan debt. A significant 70% of undergraduates finish school with an average sum of $37,000 or more in student loans.

You may wonder how having student loans can impact your eligibility for a mortgage. Here’s what you should know: When a lender is considering offering you a home loan, they want to feel confident that you will pay them back on time. A key factor is whether they think you can afford the mortgage payment with everything else on your plate. To assess this, a lender will consider your debt-to-income (or DTI) ratio, or how high your total monthly debt payments are relative to your income.

For the debt component, the institution will look at all your liabilities. These can include:

•   Car loans

•   Credit card payments

•   Student loans.

In the case of student loans (other than those forgiven by Biden administration), banks know that you’re likely to be responsible for that debt. It usually can’t be discharged in a bankruptcy and it’s not secured to an asset that a lender can recover.

Many industry professionals say that your debt-to-income ratio should ideally be below 36%, with 43% the maximum. If you have a high student loan payment or a relatively low income, that can affect your debt-to-income ratio and your chances of qualifying for a mortgage.


💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.

Can You Get a Mortgage With Student Loan Debts?

Are you wondering, “How much house can I afford with student loans?” Here are some important facts. Having student loan debt doesn’t disqualify you from getting a mortgage, but it can make it harder. So here’s how student loans are calculated for a mortgage: That student loan debt will increase your DTI ratio, which can make it harder to qualify for funds from lenders.

For example, here’s a hypothetical situation: Say you earn an annual salary of $60,000, making your gross monthly income $5,000. Say you owe $650 per month on a car loan and have a credit card balance with a $500 monthly minimum payment.

And let’s say you have student loans with a minimum payment of $650 a month. All your debt payments add up to $1,800 a month. So your debt-to-income ratio is $1,800/$5,000 = 0.36, or 36%. That’s right at the limit that some conventional lenders allow. So you can see how having a high student loan payment can affect your ability to qualify for a mortgage.

Another way that student loans can affect your chances of buying a home is if you have a history of missed payments. If you don’t make your minimum student loan payments each month, that gets recorded in your credit history.

When you fail to make payments consistently, your loans can become delinquent or go into default. Skipping payments is a red flag to your potential mortgage lender: Since you haven’t met your obligations on other loans in the past, they may fear you’re at risk of failing to pay a new one as well.

That said, if you have an acceptable DTI ratio and a history of on-time payments on your student loans, you likely have a good shot at being approved for a mortgage. It’s not a matter of having to make a choice between paying off student loans or buying a house.

Estimate How Much House You Can Afford

Taking into account the debt-to-income ratio you just learned about, use this home affordability calculator to get a general idea of how much you can afford. This tool is one you can use to help estimate the cost of purchasing a home and the monthly payment.

How Student Loan Debt Affects Your DTI Ratio

As mentioned above, student loan debt can increase your DTI ratio. How much it will increase your DTI number will depend on how big your loan debt is. Currently, the average federal student loan debt is $37,338 per borrower. The figure for private student loan debt is $54,921.

Obviously, to get that average figure, many different amounts are factored in. Consider these two scenarios:

•   Person A earns $120,000 and has $80,000 in student loan debt, plus a car payment, plus $15,00 in credit card debt.

•   Person B earns $80,000, and has $10,000 in student loan debt, no car payment, and $3,000 in credit card debt.

It’s likely that Person B will have an easier time qualifying for a home loan than Person A. It boils down to one having a higher DTI ratio.

Recommended: Strategies to Pay Off Student Debt

Improving Your Chances of Qualifying for a Mortgage

Are you wondering how to buy a house with student debt? Your student loan debt is just one part of the picture when you go shopping for a home loan. Lenders look at many other aspects of your financial situation to assess your trustworthiness as a borrower. By focusing on improving these factors, you may be able to increase your chances of getting a mortgage.

•   Credit score: One of the most important things to address is your credit score, since this is a key measure lenders use to evaluate how risky it would be to lend to you. Your credit score is determined by many factors, including whether you’ve missed payments on bills in the past, how much debt you have relative to your credit limits, the length of your credit history, and whether you’ve declared bankruptcy.

If your credit score is below 650 or 700, you may want to work on building it. Starting by consistently making your payments on time, paying off debt, or responsibly opening a new credit line may help.

•   Automate your payments. If keeping up with payments has been challenging in the past, setting up automatic payments to your credit card. You might also establish automatic payments to, say, your utilities through your providers or your bank to help you stay on track without having to memorize due dates. In the case of a bankruptcy, you’ll typically have to wait 10 years for it to disappear from your record.

•   Strengthen your work history. Your employment matters to a lender because, if you’re at risk of losing your job, your ability to pay back the loan could change as well. Gaps in employment, frequent job changes, or lack of work experience can all be red flags for a financial institution.

If employment history is a weakness in your application, perhaps you can focus on finding a more stable role than you’ve had in the past as you are saving for a house. This could also be a matter of waiting until you’ve been in a new job for a couple of years before applying for a mortgage.

•   Save up for a bigger down payment. Another way to improve your prospects is to save more money for your down payment. If you have enough to put at least 20% down on a home, your student loans may become less of a factor for the lender.

You can save for a down payment by putting funds in an interest-bearing savings account or CD, asking wedding guests (if you’re getting hitched) to contribute to a “house fund,” earning more income, or even asking a family member for a gift or loan.

•   Focus on your DTI ratio. Another key area you could focus on is your debt-to-income ratio. Tackling some of your debts — whether student loans, credit card balances, or a car loan — could help lower that ratio. Another strategy is to increase your income, perhaps by asking for a raise, getting a new job, or taking on a side hustle. This can help you pay down debt and improve your DTI ratio.

How Student Loan Refinancing May Help

If you’re buying a home with student loans, another way to potentially improve your debt-to-income ratio is to look into student loan refinancing. When you refinance your student loans with a private lender, you replace your existing loans — whether federal, private, or a mix of the two — with a new one that comes with fresh terms.

Refinancing can help borrowers obtain a lower interest rate than they previously had, which may translate to meaningful savings over the life of the loan. You may also be able to lower your monthly payments through refinancing, which can reduce your debt-to-income ratio.

Refinancing isn’t for everyone, since you can lose benefits associated with federal loans, such as access to deferment, forbearance, loan forgiveness, and income-based repayment plans.

But for many borrowers, especially those with a solid credit and employment history, it can be an effective way to reduce debt more quickly and improve the chances of getting a mortgage.


💡 Quick Tip: Not to be confused with prequalification, preapproval involves a longer application, documentation, and hard credit pulls. Ideally, you want to keep your applications for preapproval to within the same 14- to 45-day period, since many hard credit pulls outside the given time period can adversely affect your credit score, which in turn affects the mortgage terms you’ll be offered.

Don’t Let Student Loans Hold You Back

With many Americans holding student loan debt, it’s understandable that this financial burden could pose a hurdle for some would-be homeowners. But can you get a mortgage with student loans? Yes, student loans and a mortgage aren’t mutually exclusive. Paying for your education doesn’t have to cost you your dream of owning a home.

If you’ve been making payments on time and your debt is manageable relative to your income, your loans might not be an issue at all. If your student loans do become a factor, you can take steps to get them under control, potentially improving your chances of qualifying for a mortgage. One option could be refinancing those loans.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

FAQ

Can I refinance student loans to improve my mortgage eligibility?

Refinancing student loans might improve your mortgage eligibility. If you obtain a lower rate, you could potentially pay down your student loans more quickly, which could lower your debt-to-income (DTI) ratio. However, refinancing federal loans can mean you are no longer eligible for loan forgiveness and other programs.

Can a cosigner help if I have student loans and want to buy a house?

Having a cosigner on your student loans could help with your mortgage qualification if you are “on the bubble” in terms of qualifying. A cosigner with a strong financial profile and credit history could help tip you into the approval zone.

Will a history of on-time student loan payments positively impact my mortgage application?

A history of on-time loan payments is an asset. It can help build your credit score, which is one of the factors lenders use to assess whether to approve your mortgage application.

SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.

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Graduating from college and starting a career is exciting. But for many people, graduation also triggers new financial obligations, including paying off student loans.

With the average student loan debt at $37,338, it’s no wonder many people have trouble staying on top of their student loans.

There are a number of repayment options for those with federal student loans, including the Standard Repayment Plan, which gives borrowers up to 10 years to pay off their student debt, and the Extended Repayment Plan, which lengthens the repayment term for eligible borrowers up to 25 years.

Extended Repayment Plans reduce the dollar amount of monthly payments because they spread the cost out over a much longer time period.

For some individuals, these longer-term loans might be a helpful way to balance their financial obligations and their other expenses, such as rent or mortgage, food, and savings.

How Does the Extended Repayment Plan Work?

Under the Extended Repayment Plan, eligible borrowers can spread out the repayment of their federal student loans over a 25-year period, compared to the Standard Repayment Plan’s 10 years.

Because student loans are subject to interest, the borrower will also pay more interest on their loan over a longer period of time. So the monthly payments may be lower, but the borrower will end up paying more over the full term of the student loan.

To see what this looks like in action, compare the costs of two repayment plans for paying back a hypothetical, but typical, federal student loan after receiving a four-year degree from a for-profit private college.

Let’s say you borrowed $34,722 four years ago at an average interest rate of 3.9%.

•   Under the Standard Repayment Plan, monthly payments would total $350 over a 10-year term, for a total cost of $41,988.

•   Under the Extended Repayment Plan, the borrower would only have to repay $181 a month — but over a 25-year term, the total cost would be $54,409.

There is also an Extended Graduated Repayment Plan in which monthly payments start low after the borrower leaves school but then gradually increase every two years over the lifetime of the loan.

Like the Extended Repayment Plan, the loan payments are spread out over up to 25 years instead of 10. Using the above loan example, payments would start at $143 a month in the first two years after graduation and slowly increase to $251 by the end of the loan term. The total amount paid back would add up to $57,026.

Eligibility for Extended Repayment Plans

If the reduced monthly cost of an Extended Repayment Plan sounds appealing, the first step is to assess eligibility. Not all student loans or borrowers qualify for the program.

The federal student loans eligible for the Extended Repayment Plan are:

•   Direct Subsidized Loans

•   Direct Unsubsidized Loans

•   Direct PLUS Loans

•   Direct Consolidation Loans

•   Subsidized Federal Stafford Loans

•   Unsubsidized Federal Stafford Loans

•   FFEL PLUS Loans

•   FFEL Consolidation Loans

Qualifying loans must have been obtained after October 7, 1998, and the outstanding loan balance must be more than $30,000 in either Direct Loans or FFEL program loans to be eligible.

Eligibility can’t be pooled across loan types, so if, for example, a student has $35,000 in Direct Loans and an additional $10,000 in FFEL program loans, the Direct Loan portion would qualify for the Extended Repayment Plan but the FFEL loan would not.

Weighing the Pros and Cons of Extended Repayments

The Extended Repayment Plan might be appealing to some federal student loan borrowers. After all, who wouldn’t want a lower payment each month?

But it’s not actually that simple. There are benefits and drawbacks to longer student loan repayment terms.

Pros of the Extended Repayment Plan

One benefit of the Extended Repayment Plan is an obvious one — lower monthly payments.

Typical monthly student loan payments, which are generally between $200 and $300 on average, can eat up a significant amount of take-home pay for lower earners. The smaller monthly loan payments associated with the Extended Repayment Plan might free up vital funds for other essential expenditures.

This benefit can be even more pronounced with the Extended Graduated Repayment Plan, in which monthly payments slowly increase over the life of the loan. This means borrowers pay the least in the first years after graduating, corresponding with lower entry-level salaries, and more later on when they may be better able to afford it.

Cons of the Extended Repayment Plan

Although monthly payments may be lower, there are some cons to the Extended Repayment Plan.

For starters, the loan term can be more than twice as long as the Standard Repayment Plan, meaning borrowers have to keep making monthly payments for 15 years longer.

Not only does the Extended Repayment Plan mean more years of making student loan payments, those payments will also add up to more money paid over the lifetime of the loan term.

For example, based on the example described above, for a $34,722 student loan at 3.9% annual interest, the borrower would pay an additional $12,421 over the lifetime of the student loan under the 25-year Extended Repayment Plan than they would on the 10-year Standard Repayment Plan.

The Extended Graduated Repayment Plan costs even more over the life of the loan. Deferring the bulk of repayment to later in the loan term in order to allow for lower payments earlier on means borrowers carry a higher level of educational debt for a longer period of time.

Alternatives to Extended Repayment Plans

While the monthly savings may make the Extended Repayment Plan sound appealing, for some borrowers the added total cost may outweigh this benefit. But there are alternatives that can help meet various financial needs.

Income-Driven Repayment Plans

Monthly payments for income-driven repayment plans are based on a percentage of the federal student loan borrower’s discretionary income, and the amount increases or decreases as their income and family size changes during the lifetime of the student loan. This helps to ensure that payments remain affordable, even as the borrower’s income changes.

Some income-driven repayment plans have slightly shorter terms than the Extended Repayment Plan (20 years vs. 25), which may also reduce the total interest paid over the life of the loan. The SAVE Plan, the newest addition to the income-driven repayment plan lineup, will provide the lowest payments for low-income borrowers, who may see their loan balances forgiven after as little as ten years in the program. Borrowers who plan to apply for the Public Service Loan Forgiveness Program (PSLF) will want to consider income-driven repayment plans, as they are one of the requirements for qualifying for the program.

Student Loan Refinancing

Some borrowers may choose to refinance student loans with a new loan from a private lender. Eligible student loan borrowers may qualify for lower interest rates or more favorable terms.

One benefit of student loan refinancing is that it could reduce monthly payments for some borrowers. However, refinancing means forfeiting benefits and protections that come with federal student loans — like income-driven repayment. And you may pay more interest over the life of the loan if you refinance with an extended term.)

The Takeaway

With potentially lower rates and flexible repayment terms, refinancing your student loan can be an attractive option that could save you money each month — or allow you to pay off your loan faster. SoFi offers loans with low fixed or variable rates, flexible terms, and no fees. And you can find out if you prequalify in just two minutes.

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 Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.