The stock market can go up or down based on a number of different factors, including consumer confidence, worries about inflation, and supply and demand. As an investor, it’s important to understand market fluctuation and how it works, and to know how much fluctuation is normal.
Why do stocks fluctuate? Read on to learn more about market volatility and stock fluctuation.
4 Top Causes of Stock Market Fluctuations
The stock market fluctuation definition is when stock prices rise or fall. So what causes this? The stock market can move up and down due to a variety of factors, including:
Supply and Demand
The prices of stocks depend on supply and demand. Supply is how much of a good — in this case, a share of stock — is available for sale. Demand is how much consumers want to buy that stock. Prices rise when the supply of shares of stock for sale is not enough to meet investors’ demands. When investors demand for shares falls, so does the price of the shares.
Overall, the stock market fluctuates because investors are buying and selling stocks in such a way, and in such volume, that stock prices make a large move in one direction or another.
Inflation
Concerns about inflation may cause investors to become bearish and stop buying stocks, which may make the market go down. That’s because during periods of inflation, consumer spending tends to slow, and corporate profits may suffer. Inflation can inject uncertainty and volatility into the market.
Economic Indicators
Economic indicators are data that analysts use to help judge the health of the economy. These indicators can, in turn, affect stock market fluctuation. They typically include such things as the Consumer Price Index, unemployment numbers, interest rates, and home sales. If prices, interest rates, and unemployment rise, chances are good that there may be stock fluctuation.
Company Performance
How well a company is doing can affect the price of its stock and potentially cause market fluctuations. If the company is expanding its operations and reporting a profit, for instance, investors’ demand for the stock may rise, along with the price of the stock. Conversely, if there are concerns about the company’s financial health, or it reports a loss, demand for the stock may drop, and so generally will the price.
Pros and Cons of Market Fluctuations
There are benefits and drawbacks to market fluctuations. These are some of the advantages and disadvantages to consider when the market becomes volatile.
Market Fluctuations
Pros
Cons
May be able to purchase stocks at lower prices
Could lose money by selling stocks at a loss
Opportunity to diversify assets
Risk of falling prey to financial scams may be greater
Pros of Market Fluctuations
• Chance to purchase shares at lower prices. When stock prices go down, it may be a good opportunity for investors to buy shares for less. Investing in a down market could be beneficial.
• Incentive to diversify your assets. When the market is volatile, it’s a prime time to look over your asset allocation and make any prudent changes. For instance, you may want to reduce some of your holdings in riskier assets and move them over to safer investments in case the market drops.
Cons of Market Fluctuations
• Might end up selling stocks at a loss. Instead of panicking, selling your shares, and losing money, you may be better off waiting out the fluctuations if you can. When the market goes back up, you may be able to recoup what you paid for the stock.
• There may be a greater risk of financial scams. During a time of market volatility you may receive offers that advertise risk-free returns on certain investments. Be alert to possible fraud, and don’t let your emotions get the better of you, or you could lose money.
💡 Quick Tip: Before opening any investment account, consider what level of risk you are comfortable with. If you’re not sure, start with more conservative investments, and then adjust your portfolio as you learn more.
Volatility Means the Stock Market Is Working
Although it’s difficult to watch the value of your portfolio drop, stock market volatility is a normal part of stock market investing. In fact, volatility is natural, and it shows that the stock market is working as it should.
Here’s why: The more investors weigh in — by actively buying and selling stocks — the more accurate the prices of stocks will ultimately be. Essentially, it’s a weighing of information about the “correct” price of a stock from many different investors.
It’s also helpful to remember that volatility doesn’t just relate to rising stock prices — it also refers to plummeting stock prices. When the stock market makes a surge upward, that is also considered stock market fluctuation.
What Is a Normal Amount of Stock Market Fluctuation?
This is a notoriously hard question to answer because really, almost any amount of market fluctuation is possible.
The best guide for understanding what is normal (and what is not) is to look at what has happened in the past. While past performance is never a guarantee of future financial success, it’s helpful to look at the data.
The most commonly cited pool of data is the S&P 500. The S&P 500 can give a good historical gauge of stock market movement.
Since World War II — the “modern” stock market era, the S&P 500 has seen 12 drops in the stock market of over 20%.
Peak (Start)
Return
May 29, 1946
-30%
August 2, 1956
-22%
December 12, 1961
-28%
February 9, 1966
-22%
November 29, 1968
-36%
January 11, 1973
-48%
November 28, 1980
-27%
August 25, 1987
-34%
July 16, 1990
-20%
March 27, 2000
-49%
October 9, 2007
-57%
February 19, 2020
33.93%
You’ll notice that a big drop in the stock market happens somewhat regularly. And smaller fluctuations of 5% or 10% down happen much more frequently than that.
💡 Quick Tip: When you’re actively investing in stocks, it’s important to ask what types of fees you might have to pay. For example, brokers may charge a flat fee for trading stocks, or require some commission for every trade. Taking the time to manage investment costs can be beneficial over the long term.
What Does Stock Market Volatility Mean to You As an Investor?
How you deal with volatility as an investor depends on your tolerance for risk. What to know about risk is that if you can’t afford losses, volatility could be a time of fear and uncertainty for you. But if you have a higher tolerance for risk, you may see volatility as a potential opportunity.
Risk Tolerance in Investing
Risk tolerance is the amount of risk you’re willing to take with investments. Volatility in the market could directly affect your risk tolerance. For instance, if you have a higher risk tolerance, you may be willing to risk money for the possibility of high returns. If you have a lower risk tolerance, you’ll likely be looking for safer investments with more of a guaranteed return.
Your age, your financial goals, and the amount of money you have impact your risk tolerance. If you’re saving for retirement, and nearing retirement age, your risk tolerance will be lower. In this case, you’ll want to practice risk management with safer investments. If you’re in your 20s or 30s, however, you may have higher risk tolerance because you have more years to recoup any money you may lose.
Investing With SoFi
Choosing the right investment strategy depends on your goals, risk tolerance, and your personal situation. Every investor needs to manage their portfolio in a way that fits their needs during periods of market volatility and as well during times of stability.
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).
Invest with as little as $5 with a SoFi Active Investing account.
FAQ
Why does the stock market fluctuate?
The stock market fluctuates for a number of different reasons, but the biggest overall factor is supply and demand. Prices of stocks rise when the supply of shares for sale is not enough to meet investors’ demands. When investors’ demand for shares falls, so does the price of the shares. This causes volatility.
What is the average market fluctuation?
Markets fluctuate fairly frequently. The average fluctuation is about 15% during a year.
How long do market fluctuations last?
How long market fluctuations last depends on the reason for the fluctuations and how big the fluctuations are. Remember, it’s normal to have some periods of volatility in the stock market. Diversifying your portfolio may help you manage risk and stay on track with your investment goals during times of uncertainty.
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.
SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.
As with any construction project, the cost to build apartment complexes differs, based on many factors. The national average is around $12.5 million, but the range varies considerably based on the square footage, number of units, and type of apartment complex.
For anyone considering building apartments, it can be helpful to know what influences the cost early in the process.
• Building an apartment complex costs around $12.5 million on average, but this can vary significantly.
• Costs per square foot for apartment construction range from $95 to $645.
• The number of units can affect the overall cost, with each unit costing between $70,000 and $200,000.
• Different types of apartment complexes, such as infill, low-rise, mid-rise, and high-rise, have varying costs.
• Prefab or modular construction offers potential savings, with costs ranging from $150 to $400 per square foot.
What Determines the Cost of Building Apartments?
So, how much does it cost to build an apartment complex? Some design choices, like the number of stories, will increase the cost more than others. Here’s what you need to know about different cost factors to calculate the project budget and other things to consider if you’re thinking of building a house or apartment.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Location
Where you plan to build an apartment complex will impact the cost. Land prices vary across the U.S., with New Jersey ranking among the most expensive at $242,900 for one acre on average. On the lower end, Wyoming is the most affordable with an average cost per acre of $54,000.
Square Footage
The cost to build a townhouse is impacted by the size, which is measured in square feet. Generally speaking, the larger the size, the higher the cost. How much it costs to build apartments is subject to many cost factors, but the price range for an apartment complex falls between $95 and $645 per square foot. The average price comes in at around $398 a square foot.
Number of Units
The number of units in an apartment complex is another way to assess construction cost. The cost of a single unit spans from $70,000 to $200,000.
This wide cost range is due to other apartment characteristics, such as the square footage, finishings, and materials used. Whether you plan to design units as a condo or apartment may impact the type of amenities offered and overall design, which impacts the cost per unit.
Replicating the same floor plan across apartments is one strategy to reduce the total cost per unit.
💡 Quick Tip: Don’t overpay for your mortgage. Get your dream home or investment property and a great rate with SoFi Mortgage Loans.
Type
There are different types of apartment complexes, including infill, low-rise, mid-rise, and high-rise.
• Infill: This type of apartment is constructed on land in a neighborhood that is already largely developed, which generally limits the size of the structure to a duplex or triplex apartment. Building an infill apartment costs between $95 and $205 per square foot on average.
• Low-rise: This generally involves apartment complexes with four or fewer stories. Low-rise apartments may be built with wood and have an average construction cost of $180 to $275 per square foot.
• Mid-rise: This includes apartments between five and 10 stories which involve more complex design elements, such as elevators, double-sided corridors, and use of concrete and steel in construction. The average price to build a mid-rise apartment averages $210 to $310 per square foot.
• High-rise: This type of apartment has 11 or more stories and usually requires more permitting, a driven pile foundation, and use of concrete and steel. High-rise apartments range in cost from $270 to $675 per square foot.
Whether an apartment complex includes mixed uses, such as ground floor storefronts or a basement parking garage, will affect the construction cost.
How much does it cost to build apartment complexes by story? In most cases, the taller the building, the greater the expense. Mid- and high-rise apartment buildings usually require pricier materials, such as concrete and steel. Meanwhile, low-rise apartments may be built with wood, which is comparatively less expensive. Labor costs may also increase for apartments with a higher number of stories.
Prefab Apartment Building Cost
Option for prefab or modular construction is a potential cost saving opportunity. The uniform nature of these apartments reduces design expenses, plus the materials are manufactured off-site, reducing labor costs and weather-related delays. Prefab apartment buildings run from $150 to $400 per square foot on average. This construction style can be applied across apartment types, too.
💡 Quick Tip: One answer to rising house prices is a jumbo loan. Apply for a jumbo loan online with SoFi, and you could finance up to $2.5 million with as little as 10% down. Get preapproved and you’ll be prepared to compete in a hot market.
Apartment Building Construction Cost Breakdown
There are many factors that impact the cost of building an apartment. Although every apartment complex is unique, you can get a rough estimate of the total project expenditure by breaking down the costs by category. Here’s what you can expect to pay for different elements of the project.
• Architects: 8-10% of the total cost
• Builder or general contractor: 25%
• Structural engineer: 1.5%
• Foundation: 9%
• Floor structure: 12%
• Flooring: 5%
• Masonry walls: 9-10%
• Wood walls: 6-10%
• Roof: 10%
• Plumbing: 12%
• Windows and doors: 5%
• Kitchen: 8%
• Electrical: 10%
• Interior features: 3-5%
• Interior finish: 10%
“Really look at your budget and work your way backwards,” explains Brian Walsh, CFP® at SoFi, on planning for a mortgage.
Factors Affecting the Cost of Constructing an Apartment Building
There are many moving parts and cost categories that affect the construction cost of an apartment building. Besides the labor and materials expenses outlined above, it’s also important to consider soft costs and paying for building and zoning permits.
Soft costs can include fees for services like interior design, legal support, and interest and fees on a construction or home loan. When talking to lenders, it can be helpful to ask mortgage questions to identify the estimated closing costs and what fees apply. Using a mortgage calculator can help you get a sense of the financing that might be necessary for a home purchase.
Average Maintenance Cost for an Apartment Complex
A newly constructed apartment could have less maintenance costs for an initial period while equipment and building structures are in good condition. However, it’s recommended to set aside a portion of rental income each month to ensure you have sufficient funds for routine maintenance and emergency repairs.
Following the 1% rule, for example, involves budgeting one percent of the property value each year for maintenance costs. For a $2 million apartment building, this would amount to $20,000 a year for maintenance. Doing the maintenance yourself is one way to keep costs down, but this may not be feasible for larger apartment complexes.
If you plan to sell your apartments to individual owners, then maintenance could be handled through a homeowners association (HOA). As members of a HOA, apartment owners pay dues through monthly fees that support the cost of maintenance, which can vary depending on the extent of a complex’s amenities.
Besides maintenance, owning an apartment complex can involve costs associated with property taxes, amenities, insurance, and staff. If you finance the construction or work with investors, you may also need to make loan payments or divide profits between shareholders in the business.
Enhancement and Improvement Costs
Building a luxury apartment building or complex will likely entail greater enhancement and improvement costs. This may include high-end appliances, on-site parking, and dedicated outdoor space for each unit.
Luxury properties often have numerous communal amenities too, such as fitness centers, pools, and outdoor recreational areas. These upgrades bring the average cost of a luxury apartment to $550 to $650 per square foot.
How much does it cost to build an apartment complex? The total project cost will depend on a variety of factors, including the location, number of units, size, and design of the apartment but you can figure it is in the neighborhood of $398 per square foot. There are government-backed loans and private loan options for financing the cost to build an apartment complex.
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.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
How much does an apartment complex cost?
The cost of an apartment complex varies considerably based on location, size, and other factors. With an average price of $398 per square foot, the estimated cost of a 10,000 square-foot apartment complex would be $3.98 million.
Do apartment buildings hold their value?
Apartment buildings that are well-maintained are likely to hold or increase their value over time.
How many units are in an apartment complex on average?
The number of units differs significantly depending on the size of the complex. Larger, high-rise buildings may have hundreds of units while an infill building built on a lot in an existing neighborhood might have only a few units.
Photo credit: iStock/AlbertPego
*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.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
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.
Townhouses offer convenience and amenities that appeal to a range of homebuyers. They’re also growing in popularity, with new townhouse construction up more than 28% from 2020 to 2021. Construction costs also increased during the same time period.
Whether you’re building an investment property or your own new home, determining the project cost is essential before breaking ground. The cost to build townhouses depends on the size, location, number of units, onsite amenities, and the style of the building.
• Building a townhouse costs between $111 and $125 per square foot on average.
• Costs vary based on type, size, location, and additional features like garages or basements.
• Economies of scale can reduce costs when building multiple units.
• Location affects construction costs due to labor rates and material availability.
• Adding features like basements or pools increases overall construction expenses.
What Is a Townhouse?
A townhouse, also called a townhome, is a type of single-family home that has two or more floors and a shared wall with at least one other home. Compared to different home types, like duplexes and triplexes, each townhouse is individually owned and has its own entrance. Given the high-density design, townhouses tend to be more common in urban and suburban communities.
Townhouses often have their own yard or garage, but may share other communal amenities, such as a pool or tennis court, with neighboring townhouses. These shared facilities are typically governed by a homeowner’s association (HOA), which townhouse owners pay fees to for managing amenities and providing services like landscaping and snow removal.
If choosing between a condo or townhouse, another distinction is that townhomes usually have more autonomy in customizing the exterior of their home and outdoor living space, and more responsibility for that space as well.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
The cost to build townhomes depends on a variety of factors. The type of townhouse, size, number of units, location, and additions like garages and basements all contribute to the total construction cost.
Here’s what to consider when estimating how much to build a townhouse.
Type of Townhouse
There are different types of townhouse layouts and configurations, including traditional, stacked, and urban.
• Traditional: Generally organized in a row with two floors of living space, a basement, and garage.
• Stacked: Refers to townhouse units stacked in a multi-floor building, which typically have their own entrances.
• Urban: Similar to traditional townhomes, but often have more modern and spacious floor plans and higher prices.
Another key decision when purchasing a new construction home or townhome is whether to go with a modular or stick-built design. The components of a modular townhome are manufactured off-site, saving time and labor.
Stick-built townhouses are constructed on-site using a wooden frame and finished with a brick or vinyl exterior. This type of construction allows for greater customization, but generally comes at a higher cost than modular townhomes.
The cost to build a townhouse is impacted by the size, which is measured in square feet.
Townhomes cost between $111 to $125 per square foot on average. Because townhouses share walls and occupy smaller lots, they’re often more affordable than detached single-family new construction, which breaks down to an average of $150 per square foot.
Using the square footage to estimate total townhome cost is a fairly straightforward calculation. For instance, builders can expect to pay between $222,000 and $250,000 to erect a 2,000-square-foot townhouse based on the average range. Bear in mind that does not include the cost of the building site.
With these estimates, you can compare mortgage rates and determine what financing you qualify for.
Number of Rooms
The interior layout, including the number and types of rooms, is a key determining cost factor.
Not all rooms are created equal though, with kitchens and bathrooms being the most expensive due to appliances, tiling, plumbing, and more complex electrical work. The living spaces and bedrooms are generally simpler and cheaper to build.
💡 Quick Tip: You deserve a more zen mortgage. Look for a mortgage lender who’s dedicated to closing your loan on time.
Number of Units
By definition, townhouses are built in groups. Leveraging economies of scale to build multiple units or a complex could reduce the cost per unit. Keeping the design and floor plan consistent across units can also lower the price.
So, how much does it cost to build a townhouse complex? That depends on the extent of amenities included, as well as the number of units.
Location
Location, location, location. Where you choose to build a townhouse will impact the cost of construction and its value once completed.
The cost of labor varies significantly between regions. Paying builders and contractors typically accounts for 40% of new home construction expenditures. The location of the townhouse also matters in terms of costs related to accessing the site and sourcing materials.
Additions
Wondering how much to build townhomes with attractive amenities? Here’s what you can expect to pay for common townhome add-ons.
• Basement: Building a basement foundation costs between $24,000 and $44,500 on average.
• Driveway: The materials and installation costs for a new driveway range from $2 to $15 per square foot depending on the material used.
• Fencing: More affordable fence materials like wood, vinyl, and composite range from $10 to $45 per linear foot.
• Garage: Cost varies by size, with one-car garages ranging from $10,500 to $27,000 and double garages costing between $14,500 and $40,300.
• Pool: Expect to pay between $28,000 and $66,500 for an in-ground pool, with vinyl and fiber-glass lining typically costing less than concrete.
• Shed: Adding a storage shed ranges from $300 to $15,000, with pre-fabricated options usually costing less than custom builds.
💡 Quick Tip: Your parents or grandparents probably got mortgages for 30 years. But these days, you can get them for 20, 15, or 10 years — and pay less interest over the life of the loan.
Construction Cost for Building a Townhouse
Construction costs are often the deciding factor when thinking of buying or building a house. Townhouses are generally less expensive to build per unit than a detached single-family home.
In addition to the factors discussed above, townhouse construction involves a range of pre-construction costs, like purchasing land, building permits, and architectural or design fees. The materials and labor usually account for the majority of the expenses to build a townhouse.
Townhouses can be designed as starter homes or luxury properties, and project budgets can be structured according to the target market and expected return on investment. Still wading into the waters of homebuying? Consult a Home Loan Help Center for useful tips and guides to master the basics.
How much does it cost to build a townhouse? In short, it depends on the type of townhouse, size, number of units, location, and added amenities. But you can estimate roughly $111 to $125 per square foot or $225,000+ for a 2,000 square-foot abode, not including land cost.
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.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
How many townhouses can fit on an acre?
The number of townhomes that can fit on an acre will depend on what’s permitted by local zoning, as well as space allocated for landscaping, parking, and other amenities. However, an acre can accommodate around 20 two- or three-story townhomes.
How much are utilities in a townhouse?
Utility costs vary by location, unit size, personal energy use, and equipment used for heating and cooling. Due to their smaller footprint, townhomes typically have lower utility bills than single-family homes.
Should I buy a townhouse or single-family home?
There are pros and cons with either type of home. Townhomes may require less maintenance and include extra amenities, while single-family homes can offer more space and discretion in how you design and decorate your home’s exterior.
What are the disadvantages of living in a townhouse?
Living in a townhouse can mean less privacy from your neighbors and noise from shared walls.
Photo credit: iStock/vkyryl
*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.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
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.
Considering taking out a $350K mortgage to purchase a home? It’s important to understand the upfront cost associated with a mortgage and to factor the monthly payments associated with it into your budget.
So how much will a $350K mortgage cost per month? This will vary based on factors such as interest rate, the terms of the loan, and more.
• The monthly cost of a $350,000 mortgage depends on factors like interest rate, loan term, and down payment.
• Using a mortgage calculator can help estimate monthly payments and determine affordability.
• Factors like property taxes, homeowners insurance, and private mortgage insurance (PMI) can also affect the overall cost.
• It’s important to consider your budget and financial goals when determining the affordability of a mortgage.
• Working with a lender or mortgage professional can provide personalized guidance and help you understand the costs involved.
Total Cost of a $350K Mortgage
Monthly mortgage payments are a recurring expense homebuyers should include in their budget, but there are also some one-time and long-term costs they should keep in mind when determining how much home they can afford.
Upfront Costs
The largest upfront cost associated with a mortgage is likely the downpayment on the property. The median downpayment on a home is 13%, but if a buyer wants to avoid fees, including private mortgage insurance, they may have to put at least 20% down.
If a buyer puts 20% down and takes out a $350K mortgage, they’re likely putting down around $87,500.
• Abstract and recording fees: $200 to $1,200 and $125, on average, respectively
• Application fees: up to $500
• Appraisal fees: $300 to $400
• Attorney fees: $150 to $400/hour
• Home inspection fee: $300 to $500, on average
• Title search and title insurance fees: $75 to $200
These may all be non-negotiable costs, but it’s also worth keeping in mind your wants for a new home, including furnishings and the cost for professional movers.
💡 Quick Tip: Buying a home shouldn’t be aggravating. SoFi’s online mortgage application is quick and simple, with dedicated Mortgage Loan Officers to guide you from start to finish.
Long-Term Costs
Payments on a $350K mortgage are due every month, but there are also long-term costs on the horizon for homeowners. It’s important to factor in the costs of maintenance and repair to a property over time.
In general, it’s good to follow the 1% savings rule. That means a homeowner should aim to set aside 1% of the home’s purchase price annually and earmark it for repairs or maintenance.
Saving this upfront can keep homeowners from dipping into emergency funds for repairing the HVAC or fixing a leaky roof.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
The APR a homebuyer gets when applying for a $350K mortgage will vary based on market rates as well as the borrower’s financial history.
APR and the mortgage term will impact the total mortgage paid each month. As you can see, the monthly payments for a 15-year loan can be much higher than the payments for a 30-year loan. Remember, though, that over its lifetime, the 30-year mortgage is typically more costly because interest costs are higher.
Interest rate
15-year term
30-year term
3%
$2,417
$1,475
3.5%
$2,502
$1,571
4%
$2,588
$1,670
4.5%
$2,677
$1,773
5%
$2,767
$1,878
5.5%
$2,860
$1,987
6%
$2,953
$2,098
6.5%
$3,049
$2,212
7%
$3,146
$2,329
Keep in mind these estimates do not include insurance or property tax estimates, which may be rolled into monthly payments.
Consider using a mortgage calculator to determine monthly mortgage estimates based on APR and loan terms.
The total interest a homeowner will accrue on a $350K mortgage depends on the interest rate and loan length. An owner will pay more in interest the higher the rate and the longer the loan length.
On a $350K mortgage at 4.5% interest and 30-year loan term, you would accrue around $288,423.49 in interest over the life of the loan. Borrow the same amount at the same rate for a 15-year loan term, and you would accrue $131,945.77 in interest.
💡 Quick Tip: To see a house in person, particularly in a tight or expensive market, you may need to show the real estate agent proof that you’re preapproved for a mortgage. SoFi’s online application makes the process simple.
$350K Mortgage Amortization Breakdown
Another helpful way to contextualize monthly payments on a $350K mortgage is through an amortization schedule, which breaks down payments by interest and principal.
For example, if a buyer secures a $350K mortgage with a 4.5% APR over a 15-year loan, their monthly payment will be roughly $2,677. With a longer loan term, an owner has lower monthly payments. However, it takes longer for a homeowner to pay down the principal, and over the life of the loan, the borrower with a 30-year term will pay more interest. Here’s an amortization scenario for a $350K mortgage with a 4.5% APR and a 30-year loan term, showing how the payment breaks down between interest and principal each year:
Year
Beginning balance
Interest paid
Principal paid
Ending balance
1
$350,000.00
$15,634.49
$5,646.31
$344,353.71
2
$344,353.71
$15,375.09
$5,905.71
$338,448.02
3
$338,448.02
$15,103.79
$6,177.01
$332,271.03
4
$332,271.03
$14,820.03
$6,460.77
$325,810.28
5
$325,810.28
$14,523.21
$6,757.59
$319,052.71
6
$319,052.71
$14,212.76
$7,068.04
$311,984.70
7
$311,984.70
$13,888.08
$7,392.72
$304,591.99
8
$304,591.99
$13,548.45
$7,732.35
$296,859.66
9
$296,859.66
$13,193.25
$8,087.55
$288,772.11
10
$288,772.11
$12,821.70
$8,459.10
$280,313.02
11
$280,313.02
$12,433.09
$8,847.71
$271,465.32
12
$271,465.32
$12,026.59
$9,254.21
$262,211.16
13
$262,211.16
$11,601.49
$9,679.31
$252,531.86
14
$252,531.86
$11,156.82
$10,123.98
$242,407.90
15
$242,407.90
$10,691.73
$10,589.07
$231,818.84
16
$231,818.84
$10,205.27
$11,075.53
$220,743.33
17
$220,743.33
$9,696.44
$11,584.36
$209,159.00
18
$209,159.00
$9,164.27
$12,116.53
$197,042.50
19
$197,042.50
$8,607.65
$12,673.15
$184,369.37
20
$184,369.37
$8,025.45
$13,255.35
$171,114.03
21
$171,114.03
$7,416.49
$13,864.31
$157,249.75
22
$157,249.75
$6,779.57
$14,501.23
$142,748.54
23
$142,748.54
$6,113.40
$15,167.40
$127,581.15
24
$127,581.15
$5,416.62
$15,864.18
$111,716.98
25
$111,716.98
$4,687.81
$16,592.99
$95,124.00
26
$95,124.00
$3,925.53
$17,355.27
$77,768.75
27
$77,768.75
$3,128.24
$18,152.56
$59,616.20
28
$59,616.20
$2,294.31
$18,986.49
$40,629.73
29
$40,629.73
$1,422.08
$19,858.72
$20,771.02
30
$20,771.02
$509.77
$20,771.03
$0.00
These monthly payments do not take into account additional costs, like taxes and insurance, that may be bundled into the monthly payment.
What Is Required to Get a $350K Mortgage?
The mortgage process can be confusing, but here are a few requirements to expect during the process:
• Your credit score will impact your APR. Borrowers need a score of at least 500 for some mortgages, but most lenders require a score of 620 or more.
“If you have multiple debts, you want to make your minimum payments so you don’t hurt your credit score,” Kendall Meade, a Certified Financial Planner at SoFi said. “If you have cash left over after that, you should develop a strategy for which debts to pay off first,” she suggested.
• Prequalification can be an important tool in the buying process. You will provide some basic information and the lender will do a soft credit inquiry. You’ll emerge with a sense of what rate the lender might offer.
• Once you know how much money you need to borrow, getting preapproved for a mortgage is an important step. You’ll fill out a mortgage application and provide documents, such as proof of income, tax returns, and bank account statements. If you’re preapproved, you’ll receive a letter granting conditional approval to borrow the amount within a certain window, typically 60 to 90 days. SoFi’s Home Loan Help Center offers more information on this process.
How Much House Can You Afford Quiz
The Takeaway
A home is a serious purchase, and creating a budget beforehand is important. Understanding monthly payments on a $350K mortgage could help you determine if you can afford the home in the long run and help you budget for future expenses.
Factors like the loan length and APR will impact the monthly mortgage payment, and it’s worth considering different types of loans to determine which is the best fit for your finances.
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.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
What’s the monthly payment on a $350,000 mortgage?
The monthly payment on a $350K mortgage could range from $1,500 to $3,200, depending on the loan’s interest rate and term. And that’s not including some fees that may be incorporated in the loan payment, such as insurance payments.
How much down payment do I need for $350,000 mortgage?
To make a 20% down payment on a property with a $350,000 mortgage, you would need $87,500. Many buyers make lower down payments, however. Some as low as 3%.
Can I afford a $350,000 mortgage on a $95,000 salary?
It would be difficult to cover the monthly payments for a $350,000 mortgage on a $95,000 salary — you would be better off borrowing less. Use an online mortgage calculator to zero in on the amount you can truly afford to comfortably borrow.
Photo credit: iStock/Joe Hendrickson
*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.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
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.
Buying a house for the first time is a major life moment, both emotionally and financially. For many people, it’s the biggest investment they will ever make. With the median price of a house hitting $436,800 in 2023 (ka-ching), it’s not a purchase to be made lightly.
If you’re buying your first home, you may expect it to be the same as those quick, fun-and-done experiences portrayed on reality TV shows. In truth, however, it’s a process with a steep learning curve and many moving parts, from figuring out your home-shopping budget to satisfying your final mortgage contingencies. There can be minor hiccups and major missteps along the way.
There are so many things to know as a first-time homebuyer, it’s better to educate yourself in advance rather than learn as you go. To that end, this guide will cover the 10 most common first-time homebuyer mistakes to avoid, including:
• Not knowing how much house you can afford
• Failing to include other factors, like insurance and repairs, in your budget
• Waiving an inspection because you’ve found your dream house
10 Home-Buying Mistakes to Avoid
Home-buying mistakes are easy to make, especially when buying a house for the first time. Review these 10 common first-time homebuyer mistakes before searching for your dream home — so you can ensure you’ll avoid them.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Why? You may not qualify for a mortgage if your credit score is too low. For most types of mortgage loans, you’ll need a 620, though lenders also consider other factors, like your down payment and your debt-to-income (DTI) ratio. You’ll get better rates if you wait to apply for a mortgage until your score is 740 or above.
The lesson? Don’t let a low credit score rule out buying your first home, but if it’s on the lower side, maybe consider taking some time to build your credit score before shopping for a house.
Before you start looking at listings online or working with a real estate agent — and certainly before you try to get preapproved for a mortgage — calculate how much house you can afford.
Once you know the number, avoid looking at houses above your limit.
So how do you calculate how much house you can afford? There are a few easy methods:
• DTI: Think about your debt-to-income ratio (your debts divided by your gross income). When adding a monthly mortgage payment into your current DTI calculation, the percentage shouldn’t pass 43%. That’s typically the highest ratio mortgage lenders will accept.
• 28/36 rule: With this method, your max mortgage payment should be 28% of your gross income, and your total debts — mortgage and otherwise — should be no more than 36% of your gross income.
• 35/45 rule: Spend no more than 35% of your gross income on debt and no more than 45% of your after-tax income on debt.
• 25% after-tax rule: After adjusting for taxes, your mortgage should not account for more than 25% of your income.
💡 Quick Tip: You deserve a more zen mortgage. SoFi Mortgage Loan Officers are dedicated to closing your loan on time — backed by a $5,000 guarantee offer.‡
3. Putting Too Much or Too Little Down
In their eagerness to become homeowners, many first-time buyers make the mistake of going overboard and directing every bit of money they have to the purchase.
If you have to drain your emergency savings to manage the down payment on a home, you might want to dial down the amount or wait and save up a bit more. Consider what could happen if the home needs a costly repair or, worse, if you or someone in your family suddenly has an expensive medical bill. That’s a good example of when to use an emergency fund.
Conventional wisdom says to put 20% down (and it does help you to avoid paying private mortgage insurance (PMI). But with housing costs so high, that’s all but impossible for most homebuyers. Instead, focus on the minimum down payments required for the type of loan you’re considering:
• Conventional loan: As low as 3%
• FHA loan: As low as 3.5%
• VA loan: As low as 0%
Remember, though, that if you put down very little, you’ll need to borrow more. Your monthly payments will be higher, and you could pay more interest over the life of the loan.
4. Forgetting About Homeowners Insurance and Property Taxes
Your monthly mortgage loan payment is more than just the cost of your home. You’ll also need to cover the cost of homeowners insurance and property taxes, which are often paid into an escrow account. Depending on the type of mortgage and how much you’ve paid, you may also have to pay for PMI. Together, these all increase your monthly payment — sometimes substantially. When you look at a home, the real estate agent should be able to show you property tax history so you can get an idea of what you’d pay each year. You can also work with an insurance agent to simulate insurance quotes for various homes you’re considering.
Property taxes will change from year to year, and you can always change your homeowners insurance to lower the cost, even if you pay for it through the escrow account. It may be a good idea to bundle home and auto policies together to take advantage of a discount.
5. Failing to Budget for Home Repairs and Maintenance
Forgetting to budget for homeowners insurance and property taxes is one of the most common first-time homebuyer mistakes — but those expenses aren’t the only ones people forget to budget for when buying a house for the first time.
If you’ve been accustomed to calling a landlord whenever something breaks in a rental, reset your expectations. Now, you’ll have to take care of basic home maintenance — like replacing air filters, cleaning the gutter, resealing wood decks, and cleaning the chimney — and repairs. When the air conditioner is blowing hot air, the oven stops working, or your roof starts leaking, you’re on the hook for the repairs.
Some issues may be covered by homeowners insurance (but there’s still a deductible!), but other issues caused by general wear and tear are solely your responsibility. And then there are other possible costs, like higher utility bills and homeowners association fees, that can eat into your budget.
6. Not Hiring a Qualified Home Inspector
It may be tempting to waive the home inspection when you’re trying to buy the home of your dreams — especially if you have some stiff competition to be the winning bidder for an in-demand property.
Sorry to say, this is a risky strategy. A home inspection might reveal critical information about the condition of a home and its systems, from electrical problems to hidden mold; from a failing septic system to a leaky roof. What you learn in an inspection could reveal that your dream home is actually a money pit.
What’s more, your inspection report might serve as a useful negotiating tool: You could use it to ask for repairs or to work out a better price from the seller. And if you really aren’t happy with the inspection results, you may be able to use it to cancel the offer to buy.
And in the grand scheme of things, an inspection isn’t too expensive. The average home inspection costs $300 to $500.
7. Overlooking the Neighborhood and Surrounding Area
You may have fallen in love with a specific home, but when you buy a house, you’re also buying the neighborhood that comes with it, so to speak.
How are the surrounding properties maintained? Do the people seem friendly? If you have kids or are planning on having them, do you see other families with young children? How are the schools in the area? What’s the traffic like? How’s the noise level? What restaurants and stores are nearby?
Think about your ideal community — and then try to find a dream home in that type of community.
8. Letting Your Emotions Get the Best of You
Buying your first home or any home thereafter can be a roller coaster, so it’s important to prepare yourself psychologically as well as financially. If you’ve ever talked to someone buying a house, you know there are potential pitfalls all through the purchasing process.
You might fall in love with the perfect house and find it’s way over your budget. You might get annoyed with the sellers or their real estate agent, especially during the negotiation process. You might disagree with your partner about priorities.
All of these scenarios can cause a person to behave emotionally. It might make you want to walk away from a great deal. It might lead you to barrel ahead with a purchase, even when warning lights are flashing.
Our advice to a first-time homebuyer? Recognizing that this will be a challenging and, at times, stressful process (especially because you are new to it), take a deep breath, and proceed calmly. Find tools that help you move ahead with patience and a sense of calm, best as you can. With your eye on the prize — namely, your first home — you’ll get there.
Houses are more than a place to live — they’re an investment. While you certainly want to prioritize buying a home you’ll be happy in, it’s also a good idea to think about how much the property might be worth in five, 10, 15 years and beyond.
It’s impossible to predict the market, but you can feel more confident about strong future resale value by choosing a house with multiple bedrooms and bathrooms, a well-appointed kitchen, and a yard. Other features, like a finished basement or a garage, may also make it easier to sell the home in the future.
10. Not Having an Emergency Fund
One of the basic tenets of personal finance is building an emergency fund. And here’s some blunt advice for first-time homebuyers: You’re going to need an emergency fund.
House emergencies can happen at any time: A tree falls on your roof, a toilet starts to leak, your dog destroys the carpet, you name it. Having money socked away to cover these expenses is crucial when buying a home.
6 Smart Moves for First-Time Homebuyers
We’ve covered some of the most common first-time homebuyer mistakes, so let’s shift gear to smart moves you can make when buying your first home.
1. Get Paperwork Moving ASAP
What do first-time homebuyers need when getting a mortgage? Here are some of the most common docs to start putting together:
• Proof of income: Lenders will often want to see two months’ worth of pay stubs or bank statements that confirm your income. They’ll also want your tax returns from the previous two years.
• Proof of funds: To take you seriously, lenders want to know you have enough money to cover a down payment andclosing costs.
• Proof of identification: This could include a government ID, a passport, or your driver’s license.
Early in the process, you can furnish this basic information to get prequalified at various lenders. They’ll also run a credit check during the prequalification process.
Being prequalified simply allows lenders to give you an idea of what types of mortgages (fixed rate vs. variable rate, 15-year vs. 30-year, etc.) you might get approved for. It’s not a promise of approval, but it does help set expectations as you start to browse listings.
💡 Quick Tip: Your parents or grandparents probably got mortgages for 30 years. But these days, you can get them for 20, 15, or 10 years — and pay less interest over the life of the loan.
2. Check Out First-Time Homebuyer Programs
It’s wise to shop around for a few different mortgage quotes, but it would be a rookie mistake to overlook some great, government-sponsored programs that make buying a house more affordable. These include:
• FHA loans: These mortgages are designed for those with low to moderate incomes. They typically offer low down-payment requirements, low interest rates, and the ability to get approval even if you have a fair credit score.
• USDA loans: These provide affordable mortgages to those with a lower income who are planning on buying a home in a qualifying rural area.
• VA loans: These mortgages help those on active military duty, veterans, and eligible surviving spouses become homeowners. If you can check one of those boxes, you may be eligible for a home loan with no down payment requirement and no PMI.
3. Consider Additional Costs Beyond the Mortgage
As we’ve discussed above, the actual monthly house payment is not your only cost. Your full mortgage payment includes property taxes, homeowners insurance, and, potentially, PMI.
But before you even get to the point of making monthly payments, consider these upfront costs of buying a house:
• Closing costs, which are traditionally paid for by the buyer.
• Home inspections, which we highly recommend.
• Moving costs, whether just renting a truck or hiring movers.
4. Get Preapproved
Mortgage prequalification isn’t a commitment for the lender or buyer — it’s just a first step. If you appear to meet a lender’s standards, you could move on to the preapproval stage.
Getting preapproved for a home loan involves submitting additional income and asset documentation for a more in-depth review of your finances.
Once the lender approves these aspects of your loan application, you’ll receive a conditional commitment for a designated loan amount — called a preapproval letter — and have a better idea of what your loan terms will be.
Mortgage preapproval can help demonstrate to sellers that you’ve completed the first step in getting a mortgage because your credit, income, and assets have already been reviewed by an underwriter. This can smooth the bidding process and could give you an edge over others in a competitive situation with multiple offers.
You may qualify for various types of mortgage loans. Spend some time researching the different types so you have a better understanding of how they’ll impact your payments for the next several decades.
For instance, you’ll want to know the difference between a fixed-rate mortgage and an adjustable-rate mortgage (ARM). You’ll also want to understand how a 15-year term affects your monthly payments when compared to a 30-year term — but also how a longer term increases the amount you’ll pay in interest.
Finally, remember that you don’t have to go with the first mortgage offer you get. It’s worth your while to get multiple offers so you can compare interest rates, down payment requirements, terms, and more.
The Takeaway
Buying a house for the first time can be a stressful experience, but remember: At the end of it all, you’ll have a place you can call yours. You’ll build equity over time, and the house may increase in value. Just make sure you research the most common first-time homebuyer mistakes so you know how to avoid them.
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.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
What are some common mistakes first-time homebuyers make?
Some common home-buying mistakes for first-time homebuyers include forgetting to check (and improve) their credit, not calculating how much home they can actually afford, and forgetting to consider additional expenses, like inspections, homeowners insurance, property taxes, closing costs, and increased utilities. First-timers may also forget to consider the neighborhood as a whole or the future resale of the home.
What are the two largest obstacles for first-time homebuyers?
Two large obstacles for first-time homebuyers include rising housing prices and credit score requirements. Those who don’t already have equity in a current home may have more trouble coming up with a down payment on a new home. First-time homebuyers may also lack the credit score needed to get the best possible rate on a new mortgage.
What are three common mortgage mistakes?
Three common mortgage mistakes are 1) buying up to the limit you’re approved for rather than calculating how much you’re comfortable paying; 2) skipping the home inspection to expedite the process or make your offer more appealing to buyers; and 3) not considering related expenses you’ll have to budget for, including homeowners insurance, property taxes, and repairs and maintenance.
What are the most common mistakes that homebuyers make?
Homebuyers make a number of common mistakes, such as making an unnecessarily large down payment, forgetting to budget for related costs, buying more house than they can afford, and not shopping around for the best mortgage loans.
Photo credit: iStock/Drazen Zigic
*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.
‡SoFi On-Time Close Guarantee: If all conditions of the Guarantee are met, and your loan does not close on or before the closing date on your purchase contract accepted by SoFi, and the delay is due to SoFi, SoFi will give you a credit toward closing costs or additional expenses caused by the delay in closing of up to $10,000.^ The following terms and conditions apply. This Guarantee is available only for loan applications submitted after 04/01/2024. Please discuss terms of this Guarantee with your loan officer. The mortgage must be a purchase transaction that is approved and funded by SoFi. This Guarantee does not apply to loans to purchase bank-owned properties or short-sale transactions. To qualify for the Guarantee, you must: (1) Sign up for access to SoFi’s online portal and upload all requested documents, (2) Submit documents requested by SoFi within 5 business days of the initial request and all additional doc requests within 2 business days (3) Submit an executed purchase contract on an eligible property with the closing date at least 25 calendar days from the receipt of executed Intent to Proceed and receipt of credit card deposit for an appraisal (30 days for VA loans; 40 days for Jumbo loans), (4) Lock your loan rate and satisfy all loan requirements and conditions at least 5 business days prior to your closing date as confirmed with your loan officer, and (5) Pay for and schedule an appraisal within 48 hours of the appraiser first contacting you by phone or email. This Guarantee will not be paid if any delays to closing are attributable to: a) the borrower(s), a third party, the seller or any other factors outside of SoFi control; b) if the information provided by the borrower(s) on the loan application could not be verified or was inaccurate or insufficient; c) attempting to fulfill federal/state regulatory requirements and/or agency guidelines; d) or the closing date is missed due to acts of God outside the control of SoFi. SoFi may change or terminate this offer at any time without notice to you. *To redeem the Guarantee if conditions met, see documentation provided by loan officer. 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 .
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
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.
