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Even if you haven’t thought about diesel mechanics before, chances are you’ve benefited from their expertise. These skilled technicians fix the machines that harvest our food, the generators that provide electricity when the power goes out, the big rigs that ferry our goods across the country, and so much more.

Being a diesel mechanic requires a certain skill set and level of training. Generally speaking, they tend to earn slightly more than auto mechanics. According to the latest figures from the U.S. Bureau of Labor Statistics (BLS), the median pay for a diesel mechanic is $48,690 per year, or $23.41 per hour. (By comparison, the median pay for an auto mechanic is $46,880 per year, or $22.54 per hour.) However, pay rates can vary depending on where a technician works and their level of experience.

What Do Diesel Mechanics Do?

Diesel mechanics inspect, repair, and maintain vehicle engines that run on diesel fuel. This includes everything from trucks, overhaul buses, and trains, to cruise ships, generators, and construction and agricultural equipment. Their goal is to make sure vehicles are safe for both drivers and passengers.

A diesel mechanic position is a manual labor trade job you can get without a college degree, though most employers want diesel techs to have at least a high school diploma or a GED equivalent. While you don’t need secondary education to do the job, you do need specialized training, which can be acquired on the job, through a certificate program, or by attending a trade or vocational school.

And though diesel mechanics may need to occasionally speak with customers about issues with the vehicles, it can be a good job for introverts.

Recommended: 25 High-Paying Trade Jobs in Demand

Examples of a Diesel Mechanic’s Job Responsibilities

There are many daily responsibilities for a diesel mechanic, ranging from simple servicing to major repairs. For instance, when examining a diesel engine, the mechanic can run a diagnostic test to determine if the engine is running properly. If there’s a problem, a diesel mechanic can replace a vehicle’s engine, transmission, steering, and braking systems.

Here are some other essential work duties a diesel mechanic typically performs:

•   Identifying any engine malfunction issues

•   Securing the parts needed for servicing

•   Test driving vehicles for performance

•   Communicating issues about the vehicle to the customer and advising them on how best to maintain the machinery

•   Keeping detailed work records on engines serviced

What Is the Starting Salary for a Diesel Mechanic?

According to ZipRecruiter, the national average salary for an entry-level diesel mechanic in the U.S. is $38,456 a year. This breaks down to approximately $18.49 an hour, which in some states is only a few dollars more than minimum wage. Working at this rate comes out to be $739 a week or $3,204 a month.

Whether you’re paid a set weekly salary or hourly rate, starting out as an entry-level diesel mechanic can be challenging. The wages may be difficult to live on, especially if you have a lot of financial obligations or live in a place with a higher cost of living.

But if working with machinery and, in particular, on diesel engines is what you really want to do, it can be worth any initial sacrifices. And the good news is, diesel mechanic jobs are expected to continue to grow. So in time, you can move up the ladder or seek out a new job to increase your yearly salary.

In the meantime, using a spending app can help you keep tabs on where your money is going so you can make ends meet.

Recommended: What Is a Good Entry-Level Salary?

What Is the Average Diesel Mechanic Salary by State?

If you’re considering going into the field, you may be wondering how much a diesel mechanic makes a year. As previously mentioned, the median pay for a diesel service technician and mechanic is $48,690 per year, or $23.41 per hour.

Keep in mind that in certain areas, there’s an increased demand for diesel mechanics, which means there’s a greater chance pay rates will be higher. Per ZipRecruiter, here’s the average diesel mechanic salary by state.

Recommended: The Highest-Paying Jobs in Every State

Diesel Mechanic Job Considerations: Pay and Benefits

Looking for a diesel mechanic job? Along with researching positions with competitive pay, it’s important to factor in employer benefits.

Here are common employee benefits offered to diesel mechanics:

•   Health, dental, vision, and life insurance

•   401(k) with possible employer match

•   Tuition reimbursement

•   Flexible Spending Account (FSA) and/or Health Savings Account (HSA)

•   Paid sick days, vacation, and holiday pay

•   Parental leave

•   Stock options

•   Profit sharing

•   Low prescription drug costs

•   Wellness programs, such as free counseling services

Pros and Cons of a Diesel Mechanic’s Salary

When it comes to a diesel mechanic’s earnings, there are potential upsides and downsides you’ll want to keep in mind.

The Takeaway

The median pay for a diesel service mechanic is $48,690 per year, or $23.41 per hour, according to the latest figures from the BLS. However, that amount can vary by state, and there may be opportunities to earn more with additional training and experience. Diesel mechanics are in demand, and jobs are expected to continue growing. This means skilled technicians may have opportunities to join companies that offer benefit packages, potentially move up the ranks, and even increase their take-home pay.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

What is the highest-paying diesel mechanic job?

According to some of the top online job seeker sites, the highest salaries for a diesel mechanic clock in around $70,000 or more a year. Types of diesel mechanics who generally make more money include those who work on heavy duty trucks, tractor trailers, and water-based vessels such as cargo and cruise ships.

How much does a diesel mechanic earn in the Bay Area?

The average annual diesel technician salary in San Francisco is $58,022, but salaries can span from $42,000 to $79,000 a year. The average hourly rate for diesel techs in the Bay Area is $27.90.

Is being a diesel tech worth it?

For people who enjoy working with their hands and have an interest in the workings of machinery, becoming a diesel tech can be a rewarding career. The field offers opportunities for constant learning, increased expertise, job stability and room for career advancement.

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SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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.

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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The monthly amount that you pay on a mortgage for $700,000 covers the principal payment and interest, and your exact payment depends on several variables, including your interest rate. A $700,000, 30-year mortgage with a 6% interest rate, for example, costs around $4,200 monthly. However, there may be additional costs that you have to pay throughout the life of the loan, not to mention upfront costs that you must pay when you first close on the home.

The monthly cost of a mortgage depends on the interest rate, the length of the loan, and any additional costs, such as private mortgage insurance (PMI) charged on some loans. Mortgage loan terms are typically from 15 years to 30 years, and the monthly payments for a 15-year loan can be much higher than the payments for a 30-year loan, although, over its lifetime, the 30-year mortgage is typically more costly because interest costs are higher.

Here’s a look at how much a 700,000 mortgage might cost per month for a 15-year or 30-year loan term with various interest rates.

What Is the Total Cost of a $700K Mortgage?

A $700,000 30-year mortgage with a 6% interest rate (which, as noted above, costs around $4,200 monthly) has a total cost of $1,510,867. The same loan over 15 years would have a $5,900 monthly payment and a total cost of $1,063,260. These amounts are simply estimates; exact costs will depend on interest, escrow, taxes, and insurance. A rule of thumb when buying a home is to not pay more than 28% of your gross monthly income. So someone whose monthly mortgage payment is $4,200 would need to take home at least $15,000 a month.

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The Upfront Costs of a $700K Mortgage

When you buy a house and take out a mortgage, in addition to your down payment, you will have to pay closing costs. Closing costs are mostly the administrative expenses for closing the deal. They include mortgage lender fees, titling fees, insurance fees, taxes, and appraisal fees. These costs are typically not covered by your down payment. Here’s a closer look at some upfront costs a buyer will face.

Earnest money Also known as a deposit, this is the money you put down to show the seller you’re serious about buying their place.

Down payment The amount you pay as a down payment will depend on the type of home loan. A conventional loan without private mortgage insurance (PMI) may call for a 20% down payment. On the other hand, you might get a conventional loan with mortgage insurance with a 3% down payment. A down payment for a Federal Housing Administration loan is typically around 3.5%, and Veterans Affairs loans or U.S. Department of Agriculture loans have no down payment required.

The more you can afford as a down payment, the less interest you will pay because the lender considers you less risky as a borrower.

Closing costs Your lender will charge you fees for administrative services, such as application, origination, and underwriting fees. And then there are transfer taxes associated with transferring the title from the seller to the buyer.

Recommended: First-Time Homebuyer Guide

The Long-Term Costs of a $700K Mortgage

Your mortgage payments pay down the principal and the interest on your loan. Proportionally, more of your payment will go toward interest rather than the principal at the beginning of the loan term, and at the end of the loan term, more of your payment will go toward paying down the principal.

If you paid less than 20 percent as a down payment, your mortgage lender may also require you to pay private mortgage insurance (PMI) on a monthly basis. However, there are also other long-term costs:

Property taxes These can add up to thousands of dollars a year and can change annually, or as often as your town raises taxes.

Home maintenance One rule of thumb is to set aside 1% of your home’s total value each year for maintenance costs.

HOA, condo, or co-op fees If your home is a condo or part of a homeowners association (HOA) or co-op, you will need to pay a monthly fee. The fee covers services such as grounds maintenance, use of a community center, and snow removal. HOA fees can range anywhere from $100 to $1,000.

Homeowners’ and hazard insurance Some areas are designated “high risk” for natural disasters, such as floods, earthquakes, wildfires, or severe storms. If your home is located in one of these areas, you will need to pay hazard insurance, which could cost between 0.25% to 0.33% of the home’s value paid annually.

Recommended: Home Loan Help Center

Estimated Monthly Payments on a $700K Mortgage

The table below shows the estimated monthly payments for a $700,000 mortgage loan for both a 15-year and a 30-year loan with interest rates varying from 5% to 8%.

How Much Interest Is Accrued on a $700K Mortgage?

The amount of interest accrued on a $700,000 mortgage will depend on the length of the loan and the interest rate. A shorter loan term will mean less accrued interest. For example, for a 15-year loan for $700,000 with a 6% interest rate, the interest would amount to around $363,259 over the life of the loan. For a 30-year loan with a 6% interest rate, the interest would be more than double at $810,867.

Amortization Breakdown for a $700K Mortgage

An amortization schedule for a mortgage loan tells you when your last payment will be and how much of your monthly payment goes toward paying off the principal and how much goes toward paying off the interest. At the beginning of the loan term, most of your payment will go toward the interest.

Below is the mortgage amortization breakdown for a $700,000 mortgage with a 6% interest rate for a 30-year loan.

What Is Required to Get a $700K Mortgage?

Let’s say you want to buy a home for $875,000 with a down payment of 20% or $175,000. To qualify for a 30-year mortgage loan of $700,000 with a 6% interest rate, you would need to earn around $180,000 annually. For a 15-year loan, you would need to earn around $253,000 annually.

This calculator shows you how much of a mortgage you can afford based on your gross annual income, your monthly spending, your down payment, and the interest rate.

How Much House Can You Afford Quiz

The Takeaway

When calculating how much a mortgage loan for $700,000 will cost per month, the principal and interest are two of the biggest components. However, there are other costs that may be included, such as private mortgage insurance. And don’t forget about closing costs as well.

The length of the loan will drastically affect the amount of interest paid over the life of the loan. For example, the interest paid on a 30-year loan versus a 15-year loan with a 6% interest rate could be more than double.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

What will the monthly payments be for a $700K mortgage?

The longer your loan term, the lower your monthly payment on a mortgage loan, but you will pay more interest over the life of the loan. The exact monthly payment for a $700,000 mortgage will depend on the interest rate and the loan term. The payment for a $700,000 30-year mortgage with a 6% interest rate is approximately $4,200. For a 15-year loan with the same interest rate, the monthly payment is around $5,900.

How much do I need to earn to afford a $700K mortgage loan?

To buy a home for $875,000 with a down payment of 20% or 175K, and with a 30-year mortgage loan of $700,000 with a 6% interest rate, you would need to earn around $180,000 annually. For a 15-year loan, you would need to earn around $253,000 annually.

How much down payment is required for a $700K mortgage loan?

The down payment you will pay will depend on the type of mortgage and the lender. Some lenders accept 3%, while some expect 20%. If your down payment is less than 20%, you might have to add private mortgage insurance (PMI) to your monthly payments.

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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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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Crowdfunding allows businesses to raise capital by pooling together small amounts of money from many investors. This can include private investors, institutional investors, friends, and family. There are different types of crowdfunding, but they tend to share a common goal: helping entrepreneurs raise money for their business.

Entrepreneurs may raise money from the public through social media platforms or crowdfunding websites. This is an alternate take on the traditional methods of financing a business through equity or debt. Crowdfunding offers some advantages to business owners who may not qualify for traditional loans or would prefer to avoid them. There are, however, some potential downsides to know if you’re interested in exploring crowdfunding for business.

What Is Crowdfunding?

Crowdfunding is more or less exactly what it sounds like: funding that comes from the crowd. Note, though, that regulators like the Securities and Exchange Commission (SEC) have their own definition of crowdfunding — but for our purposes, a broad definition will do the trick. Generally, crowdfunding for business is subject to federal securities laws. That means any efforts to raise capital through the crowd require SEC registration.


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History of Crowdfunding

The concept of raising capital as a collective effort is not a new one.

For example, Ireland launched several loan funds in the 1700s and 1800s to help less-advantaged people gain access to credit. A group of wealthier citizens pooled their money together to provide the funding for those loans.

More recently, online crowdfunding began at the start of this century. In 2003, ArtistShare became the first crowdfunding website, allowing people to collectively fund the efforts of artists. At the time, the platform used the term “fan-funding” rather than crowdfunding to describe its mission.

In 2006, entrepreneur Michael Sullivan coined the term “crowdfunding,” using it to describe an ultimately failed video-blog project for which he was seeking backers.

Crowdfunding began to move into the mainstream in 2008 and 2009, with the launch of companies such as Indiegogo and Kickstarter, respectively. Those websites allow supporters to help people build projects or businesses, but they do not receive equity in return.

In 2012, President Barack Obama signed into law the Jumpstart Our Business Startups (JOBS) Act, which included a provision allowing equity crowdfunding. This permitted early-stage businesses to sell securities to raise funds via online platforms. The SEC followed up with the adoption of Regulation Crowdfunding to oversee the crowdfunding provisions included in the JOBS Act.

How Does Crowdfunding Work?

In general, crowdfunding works by allowing multiple people to contribute money to a common cause. To launch a campaign, an entrepreneur will set up an account on an online crowdfunding platform.

Instead of presenting their product or service and their business plan to professional investors like venture capital firms, they’ll share it with the public and appeal for funds from them. The entrepreneurs will typically select a time period during which the investors can put money into the campaign to help it achieve its crowdfunding goal.

Crowdfunding is not a loan, in the traditional sense. The entrepreneur does not get the money they need to launch or scale your business from a lender. Instead, they tap into capital markets sourced from a group of people, which can include people they know as well as strangers.

With crowdfunding, anyone can invest but there are limits on the amount that can be invested in Regulation Crowdfunding during a 12-month period. These limits reflect their net worth and income.

Here’s a brief look at how crowdfunding works:

•   If either your annual income or net worth is less than $107,000 you can invest up to the greater of either $2,200 or 5% of the lesser of your annual income or net worth during any 12-month period.

•   If both your annual income and net worth are equal to or more than $107,000 you can invest up to 10% of your income or net worth, whichever is less but not more than $107,000 during any 12-month period.

If you’re an accredited investor, there are no limits on how much you can invest. An accredited investor has earned income of at least $200,000 ($300,000 for married couples) in each of the two prior years and a net worth of over $1 million. Individuals who hold certain financial professional certifications can also get accredited investor status.

Crowdfunding vs IPO

It’s important to note that crowdfunding is not the same as launching an Initial Public Offering (IPO). IPOs involve taking a company public and offering shares to investors through a new stock issuance. This is another way businesses can raise capital.

The IPO process begins with getting an accurate business valuation. Once a company goes public, an IPO lock-up period prevents insiders who already own shares from selling them for a certain time period. This period may last anywhere from 90 to 180 days. When it’s over, investors can buy and sell shares of the company on public exchanges.

For businesses, an IPO could be an effective way to raise capital if there’s sufficient demand among investors who are interested in buying stock at IPO price. Meanwhile, IPO investing may be attractive to investors who are interested in getting on the ground floor of start-ups and early-stage companies.

How Many Types of Crowdfunding Are There?

There are different types of crowdfunding you can use to raise capital for your business. Each one works differently, though entrepreneurs may choose to use one or all of them for business fundraising. Here’s a closer look at how the various types of crowdfunding work.

Rewards-Based Crowdfunding

Rewards-based crowdfunding allows you to raise capital from the crowd in exchange for some type of reward. For example, say you’re launching a start-up that produces eco-friendly water bottles. In exchange for funding your campaign, you may choose to offer your backers samples of your product.

This type of crowdfunding can be helpful for testing the waters, so to speak, to gauge interest in your product. If your campaign succeeds, that could be a sign that there’s sufficient consumer interest in your offerings. But if your efforts to raise capital fizzle, it could mean your idea needs some tweaking.

Donation-Based Crowdfunding

Donation-based crowdfunding allows you to raise funds on a donation basis, with no rewards offered. With this type of crowdfunding, you’re asking people to give money to your cause. Succeeding with this type of crowdfunding campaign may depend less on the product or service you’re trying to launch than on the story behind your business.

Equity Crowdfunding

Equity crowdfunding allows you to raise capital for your business by offering unlisted shares or equity in your business to investors. This is the type of crowdfunding that falls under the Regulation Crowdfunding heading.

Equity crowdfunding can be better than rewards-based or donation-based crowdfunding if you need to raise large amounts of money for your business. The tradeoff, however, is that you have to be sure that you’re observing SEC regulations for launching this type of campaign and you’ll need to spend time carefully determining the value of your business.

Peer-to-Peer Lending

Peer-to-peer (P2P) lending is another type of crowdfunding that allows businesses to raise capital through pooled loans. With this kind of crowdfunding, you borrow money from a group of investors. You then pay that money back over time with interest.

Getting a peer-to-peer loan may be preferable if you’d rather not give up equity shares in the business or deal with regulatory issues. And a P2P loan may be easier to qualify for compared to traditional business loans.

There is, however, the cost to consider. If you have a lower credit score, you could end up with a higher interest rate which would make this type of loan more expensive.

Pros and Cons of Crowdfunding

Relying on different crowdfunding methods can benefit businesses in a number of ways. Companies may lean toward crowdfunding in lieu of other financing methods, including debt financing with loans or equity financing through angel investors or venture capitalists. There are, however, some potential drawbacks associated with crowdfunding for business. Here’s a quick rundown of how both sides compare.

Crowdfunding Pros

•   Raise capital without trading equity. Venture capital and angel investments require businesses to trade equity or ownership shares for capital. Depending on the types of crowdfunding you’re using, you may not have to give up any ownership to get the capital you need.

•   Increased visibility. Launching a crowdfunding campaign online through a funding platform and/or social media could help attract attention from investors and potential clients or customers alike, increasing brand awareness.

•   Get funding when you can’t qualify for loans. If you’re having trouble getting approved for a business loan or start-up loan, crowdfunding could help you access the capital you need without having to meet a lender’s strict standards.

Crowdfunding Cons

•   Requires time and effort. Launching a successful crowdfunding campaign means doing your research to understand who your campaign is likely to reach and what kind of response it’s likely to get. In that sense, it can seem more complicated than filling out a loan application.

•   No guarantees. Using crowdfunding to raise capital for your business is risky because there’s no guarantee that your campaign will attract the type or number of investors you need. It’s possible that you may put in a lot of work to promote a campaign only to come up short with funding.

•   Fees. Crowdfunding platforms typically charge fees to launch and run a campaign. The fees can vary from platform to platform but it’s important to factor the costs in if you’re considering this fundraising method.

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How to Decide If Crowdfunding Is Right for Your Business

If you look at some of the most successful crowdfunding examples, you’ll see that it’s possible for companies to raise large amounts of capital this way. Some of the most successful crowdfunding campaigns, in terms of outpacing their original funding goals, include:

•   The Micro, a 3D printer that raised $3.4 million in 11 minutes, easily surpassing its original $50,000 fundraising goal

•   Reading Rainbow, which raised over $5 million and broke the Kickstarter record for having the most backers of any project

•   Pono, which met its $800,000 goal within a day of campaign launch and went on to raise more than $6 million

•   Pebble smartwatch, which with more than $10 million raised is the most funded Kickstarter campaign of all time

Whether crowdfunding, an IPO, or some other source of capital is right for your business depends on how much capital you need to raise, whether you’re interested in or able to qualify for loans, and what types of crowdfunding you’re interested in. Weighing the pros and cons and comparing crowdfunding to other types of equity and debt financing can help you decide what may work best for your business.

The Takeaway

Crowdfunding involves raising capital for a business venture by soliciting a large number of small investors. Crowdfunding can also have appeal for investors as well, though it’s important to understand how SEC regulations work. It has pros and cons for both entrepreneurs and investors.

If you’re interested in funding up-and-coming companies without having to observe net worth and income requirements, IPO investing could make more sense. But that also comes with its pros and cons, and some significant risks.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

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