How Much a Commercial Driver’s License (CDL) Costs and How to Pay for It

How Much a Commercial Driver’s License (CDL) Costs and How to Pay for It

If the lure of the open road intrigues you and the idea of spending years in classrooms doesn’t, then becoming a commercial driver may be ideal for you. Before hitting the highway, you’ll need to secure a commercial driver’s license (CDL), which could cost between $3,000 to $10,000 depending on state fees.

Keep reading to learn more on the costs of obtaining a CDL, whether or not you have to go to school, and how to pay for your commercial driver’s license.

Key Points

•   To obtain your commercial driver’s license (CDL), you’ll typically need to attend a CDL training course, pay the fees, and pass written and skills tests.

•   Some trucking companies provide paid CDL training in exchange for a commitment to work for them upon completion. This can be a cost-effective way to obtain your CDL.

•   Federal programs like the Workforce Innovation and Opportunity Act (WIOA) offer grants to individuals seeking employment in high-demand fields, including trucking.

•   Various organizations offer scholarships to support individuals pursuing careers in trucking. Research industry associations and educational institutions for opportunities.

•   If other funding sources are unavailable, loans can be used to cover CDL training costs. However, consider the interest rates and repayment terms before opting for this method.

Typical Cost of Obtaining a CDL

The typical cost of obtaining a Commercial Driver’s License (CDL) ranges from $3,000 to $10,000, depending on the training program, location, and endorsements required. These expenses include tuition for CDL school, fees for written and skills tests, medical exams, and any additional certifications. Some training programs may also charge for classroom materials or driving practice hours.

Costs can vary based on the duration and comprehensiveness of the program. To offset these expenses, individuals may explore financial aid options such as scholarships, grants, employer-sponsored training, or loans. Researching and comparing programs can help identify the best value for your investment.

Recommended: Student Loan vs Personal Loan for College Expenses

Do You Have to Go to a School to Obtain Your CDL?

As of February 7, 2022, new federal regulations require individuals to complete Entry-Level Driver Training (ELDT) from a registered training provider before obtaining a Commercial Driver’s License (CDL) for the first time, upgrading a CDL, or getting certain endorsements.

While this doesn’t strictly mean attending a traditional “school,” the training must meet federal standards and be provided by an ELDT-certified provider. This requirement ensures that CDL applicants receive the necessary education and hands-on experience to safely operate commercial vehicles. Many choose CDL schools because they are often ELDT-compliant and provide a comprehensive training environment.

How to Pay for CDL School

Paying for CDL school can be a significant financial investment, but there are several options to help ease the cost. Whether you’re looking to finance your training through scholarships, grants, employer-sponsored programs, or loans, understanding your choices is essential for making this career path affordable.

To help, we’ve listed ten ways to pay for your CDL school costs and associated expenses.

1. Workforce Training Funding

The Workforce Innovation and Opportunity Act (WIOA) became law on July 22, 2014, and is designed to help job seekers get the education, training, support, and employment they need. The WIOA requires states to ensure that their workforce development programs are strategically aligned to meet the needs of workers. The WIOA is managed through the U.S. Department of Labor (DOL) in collaboration with numerous partners to get the necessary resources to states and local areas.

Plus, the FMCSA CDL Program Implementation Grant provides financial resources to states.

2. State CDL Training Grants

Each of the states in the United States and the District of Columbia can apply to the federal CDL implementation grant to get funding for relevant programs that assist in their CDL program. Contact the field office of your state (links are included in the field office chart) to get information about what’s currently available to cover your CDL school price. Explain that you need financial assistance to get quality CDL training.

3. Local CDL Training Grants

Many local governments and workforce development programs offer grants to cover CDL training costs. These grants are typically aimed at addressing regional driver shortages and providing opportunities for individuals in need of employment. Check with your local employment office or community organizations for available programs and eligibility requirements.

4. Scholarships

Various organizations offer scholarships to help cover the cost of CDL school. Industry associations, trucking companies, and vocational schools may provide funding opportunities for eligible candidates. Research scholarship programs specifically for aspiring truck drivers, and apply early to maximize your chances of receiving financial assistance for your training.

Recommended: SoFi’s Scholarship Search Tool

5. Funding for Veterans

Veterans may be eligible for funding to cover CDL school through the GI Bill or other veterans’ benefits. Programs like the Yellow Ribbon Program may also offer additional financial support for CDL training. Contact your local Veterans Affairs office to learn about specific programs and eligibility requirements for veterans.

6. Federal Student Loans

To qualify for federal loan funding, you must first fill out a Free Application for Federal Student Aid (FAFSA®). If a CDL school meets requirements, federal student loan aid may be available. Going this route will also let you know if you qualify for a Pell Grant based on your income; again, make sure that the CDL school is eligible to receive federal funding.

7. Private Student Loans

If grants, scholarships, and federal student loans don’t cover the CDL school costs, then explore private student loans. These loans are offered by banks, credit unions, and online lenders to pay for educational expenses. You’ll fill out an application and what you’ll receive typically depends on your credit score and income.

Note that not all private lenders will cover loans for CDL school, including loans from SoFi.

8. Trucking Company Tuition Reimbursement

This is when a trucking carrier pays part to all of your CDL school costs. They may do this if, for example, you’re a current employee in another capacity. Trucking companies may also choose to take this route to encourage someone to join their company.

9. Savings

You may find that you have enough money in your savings account to pay for the CDL program. Or you may create or continue a savings plan to accrue enough funds to pay for your training. That way, there are no loans to pay back.

10. Company Sponsored CDL Training

A company in need of drivers may be offering a training program. Just ensure that the program, which is run by the trucking company itself instead of a training school, is quality. Typically, you’ll need to work for the company offering the training for a certain amount of time; this can be good if you’re looking for a job, eliminating the stress of the job hunt that may follow the completion of a CDL program.

The Takeaway

You may decide that becoming a commercial truck driver is a good way to earn income. When it comes to how to pay for CDL school, you can save up and pay cash, apply for scholarships and grants, look for an employer who will cover part or all of the costs of training, or take out loans.

Community college and other certificate programs aren’t eligible for SoFi’s private student loans. If you’re interested in private student loans for another educational venture, consider SoFi’s no fee private student loans. These loans can be used to cover your costs of tuition, books, supplies, and more so you can get on the road as a fully licensed commercial truck driver.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

Can you get your CDL without going to school?

Yes, you can obtain a Commercial Driver’s License (CDL) without attending school, but most states require you to meet Entry-Level Driver Training (ELDT) standards. Self-study and private practice with a qualified driver are options. However, CDL training programs provide structured learning, making it easier to pass written and skills tests.

Do some trucking companies pay for your CDL training?

Yes, many trucking companies offer paid CDL training programs. These companies cover training costs in exchange for a commitment to work for them for a specified period, often one to two years. These programs can be a cost-effective way to enter the trucking industry while gaining hands-on experience.

How much does getting your CDL cost?

The cost of obtaining a Commercial Driver’s License (CDL) varies but typically ranges from $3,000 to $10,000, depending on the training program and location. Costs include tuition for CDL school, fees for written and skills tests, medical exams, and additional endorsements. Some employers or grants may help cover these expenses.


Photo credit: iStock/FG Trade

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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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Tips for Eating Out at Restaurants While on a Budget

The cost of eating out, like just about everything else, goes up with inflation, but that doesn’t mean you have to skip it altogether. It can be a fun way to take a night off from cooking, try new foods, and perhaps most importantly, bond with others.

If you’d like to enjoy eating out without breaking the bank, try these strategies to make dining out more affordable. They include timing your visits wisely, seeking out deals, ordering strategically, and taking advantage of loyalty programs.

Key Points

•   Choose budget-friendly restaurants like fast-casual eateries to save money while dining out.

•   Time visits wisely by opting for lunch menus or dining during happy hours for discounts.

•   Utilize restaurant apps and loyalty programs to access deals and earn rewards.

•   Share meals or appetizers to reduce costs, but be aware of potential surcharges.

•   Set a dining-out budget and stick to it to avoid overspending.

Choose Budget-Friendly Restaurants

The Bureau of Labor Statistics reports that the spending on food outside the home rose 8.1% in 2023. That’s a significant jump and can take a bite out of your discretionary spending funds. (There are, as you might expect, risks to not saving money or blowing your budget in this way.)

However, with careful planning, you can find ways to save and still eat out without going into debt. Opting for fast-casual restaurants is a good choice if you want to avoid an expensive meal. Prices at these restaurants are designed to appeal to typical Americans. Examples of fast-casual restaurants are Olive Garden, Outback Steakhouse, Macaroni Grill, and P.F. Chang’s.

The meals at fast-casual eateries straddle the line between fast food and fine food. You will also find an extensive children’s menu in many cases, which can be more affordable than ordering an adult-sized meal for a kid.

Time Your Visits Wisely

One simple way to save money when eating out is to go midday: Restaurant lunch menus tend to go easier on your eating-out budget. Lunch menus are cheaper because the portions tend to be smaller so the restaurant charges less. Also, the restaurant may want to encourage more diners at lunch time.

Many eateries will offer deals on certain days of the week, such as Mondays when people might tend to work from home and not dine out. A restaurant might allow children to eat for free on certain nights, making eating out on a budget easier for families.

Check local media and community pages to find out which restaurants are offering deals and when. Also look at restaurant Facebook pages, Yelp, and other social media for time-sensitive deals that can help you save money on food.

Take Advantage of Happy Hours

Happy hours are another way that restaurants try to attract business at slower times, and they can be a good deal if you are on a budget so you don’t deplete your checking account. Happy hours are often scheduled to increase foot traffic in the early evenings during weekdays. Although cheap drinks are usually what come to mind for happy hour, many restaurants offer discounts on food, too. You might have a budget-priced beer or glass of wine and some snacks and consider it dinner.

If you want to save as much as possible when eating out, consider stacking deals. You might be able to go out to eat on, say, a Monday during the happy hour and reap a double discount in some places.

Recommended: 50/30/20 Budget Calculator

Make the Most of Deals and Discounts

Lots of restaurants offer deals and discounts, you just have to know how to access them. That’s often through an app. Bigger chains like Panera and Olive Garden have an app with deals and offers reward points (more on that below), which can encourage customer loyalty and more frequent dining. According to Bluedot, a restaurant technology company, 51% of customers find deals using a restaurant’s app, while 43% find deals through coupons in the mail.

Other ways to find restaurant deals are to check such websites as Groupon and LivingSocial. You might also find discounted, restaurant-specific gift cards on these sites. Also look on social media for deals; you might see an offer, such as two pasta entrees and a bottle of wine, at a price that’s gentle on your bank account.

Another tip: At restaurant.com, you can buy a certificate for a specific restaurant at a discounted price, for example, a $25 gift certificate for $10.

Join Loyalty Programs

Restaurants use loyalty programs to attract consumers. According to PYMTS.com, 67% of restaurants now provide a loyalty program. Restaurants often offer incentives to sign up for loyalty points, such as a free appetizer, dessert, or entrée.

Panera has a popular program that is based on the number of visits members make to their locations. Members of the program receive personalized treats and rewards, such as free bagels, savings on salads and sandwiches, birthday surprises, and an unlimited coffee subscription.

Order Strategically

Plan ahead how you might keep your bill within your budget’s boundaries.

Sidestep Pricey Drinks

Alcohol tends to be expensive in restaurants, so you might stick with a soft drink or the cheapest option, free tap water. If you would like some wine with your dinner, call the restaurant and ask if they allow you to bring your own and if they charge a corkage fee. It might be cheaper to take your own wine and pay the corkage fee.

Also take note of how beverages like coffee and iced tea are handled. Some eateries offer free refills; others don’t. Know the impact on your wallet before you opt for that second (or third) serving.

Share Meals or Appetizers

Many restaurants serve large portions, so one strategy for saving money when eating out is to share appetizers with others or split an entrée. For example, you might make a meal for three people out of two entrees and a couple of sides instead of three entrées.

If you split an entrée, the kitchen might be willing to split it between two plates before serving it. If not, ask for an extra plate when the meal comes. You can then split the bill politely when dining out by asking the server to divide the amount or having one person pay and the others transfer their share to them.

Recommended: How Much of Your Paycheck Should You Save?

Set a Restaurant Budget

Set a budget for eating out each week or month so that you don’t spend too much. To help figure out the amount, track your current dining habits for a week, and then consider how much you can reasonably allow based on your lifestyle and total budget.

You might try out some different budgeting methods, such as the envelope system. With this technique, you could allot a certain amount of money to dining out at the beginning of the month. Once that money is gone, stop dining out, or else borrow from another spending category if you have wiggle room there. But this is not a moment to be transferring money from one bank account to another, as in from savings to checking, to fuel your restaurant tab. You want to stay on target and not put too much of your hard-earned cash towards eating out.

Recommended: How to Merge Bank Accounts

The Takeaway

Eating out can get expensive, but there are ways to lower the cost and still enjoy meals at restaurants. Timing your visits strategically, snagging deals via loyalty programs, and sharing food can be some of the ways to stick to your budget.
Another idea for helping your budget can be to pick the right banking partner.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

How effective is it to split meals when dining out on a budget?

How to eat out inexpensively can include splitting meals for significant savings. However, some restaurants may add a meal-sharing surcharge or reduce portion sizes to discourage people from splitting meals. Use your judgment to see if this is a good tactic for lowering dining-out costs.

Are lunch menus typically more budget-friendly than dinner options?

Yes. Lunch menus tend to be cheaper because the portions may be smaller and fewer employees are typically required to staff a restaurant at lunchtime compared to dinner time.

What days of the week often have the best restaurant deals?

Mondays, Tuesdays, and Wednesdays tend to have the best deals to attract more diners vs. the standard “eating out” days of Friday and Saturday.

Photo credit: iStock/Daniel Suhre


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SoFi members with direct deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

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.

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What Is 401(k) Matching and How Does It Work?

Matching in 401(k) retirement accounts involves an employee making a contribution to the account, and their employer mirroring that contribution — or matching it. A 401(k) is a mechanism for saving retirement funds by making pre-tax contributions through deductions from payroll.

Some plans offer a 401(k) employer match, which can be the equivalent of getting “free money” from an employer. That can help increase an investor’s retirement savings over time.

Key Points

•   401(k) matching involves employers contributing to an employee’s retirement plan, matching the employee’s contributions up to a certain limit.

•   Benefits include tax-deferred growth on investments and immediate ownership of contributions.

•   Matching rates vary, with some employers offering dollar-for-dollar matches and others a percentage.

•   Contribution limits are set annually, with additional catch-up contributions allowed for those over 50.

•   Vesting schedules determine when employees gain full ownership of employer contributions.

What Is 401(k) Matching?

Matching a 401(k) contribution means that an employer matches or mirrors an employee’s contribution to their retirement account, typically up to a certain percentage. In effect, if an employee contributes $1 to their 401(k), an employer would also contribute $1, thereby “matching” the contribution. But again, there are limits to how much employers are generally willing to match.

There are certain advantages to 401(k) matching.

For one, investment gains and elective deferrals to 401(k) plans are not subject to federal income tax until they’re distributed, which is typically when:

•   The participant reaches the age of 59 ½

•   The participant becomes disabled, deceased, or otherwise has a severance from employment

•   The plan terminates and no subsequent plan is established by the employer

•   The participant incurs a financial hardship

Second, elective deferrals are 100% vested. The participant owns 100% of the money in their account, and the employer cannot take it back or forfeit it for any reason.

And third, participants choose how to invest their 401(k). The plans are mainly self-directed, meaning participants decide how they’d like to invest the money in their account. This could mean mutual funds or exchange-traded funds (ETFs) which invest in a wide array of sectors and companies, but typically doesn’t include investing in individual companies and stocks.

Investment tactics might vary from person to person, but by understanding their goals, investors can decide whether their portfolio will have time to withstand market ups and downs with some high-risk, high-reward investments, or if they should shift to a more conservative allocation as they come closer to retirement.

💡 Quick Tip: The advantage of opening a Roth IRA and a tax-deferred account like a 401(k) or traditional IRA is that by the time you retire, you’ll have tax-free income from your Roth, and taxable income from the tax-deferred account. This can help with tax planning.

Get a 1% IRA match on rollovers and contributions.

Double down on your retirement goals with a 1% match on every dollar you roll over and contribute to a SoFi IRA.1


1Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits.

How Does 401(k) Matching Work?

A 401(k) match is an employee benefit that allows an employer to contribute a certain amount to their employee’s 401(k) plan. The match can be based on a percentage of the employee’s contribution, up to a certain portion of their total salary or a set dollar amount, depending on the terms of the plan.

So, some employers might offer a dollar-for-dollar match, while others might offer matching based on a percentage, or a partial-match. Others may not offer any type of match.

That’s important to keep in mind: Not all employers offer this benefit, and some have prerequisites for participating in the match, such as a minimum required contribution or a cap up to a certain amount.

Meeting with an HR representative or a benefits administrator is a one way to get a better idea of what’s possible. Learning the maximum percent of salary the company will contribute is a start, then the employee can set or increase their contribution accordingly to maximize the employer match benefit.

401(k) Matching Example

Many employers use a match formula to determine their 401(k) matches (assuming they offer it at all). Some formulas are more common than others, too, which can help us with an example.

Consider this: Many 401(k) plans use a single-tier match formula, with $0.50 on the dollar on the first 6% of pay being common. But others use multi-tier match formulas, e.g., dollar-on-dollar on the first 3% of pay and $0.50 on the dollar on the next 2% of pay.

For the sake of breaking a few things down, here’s a retirement saving scenario that can illuminate how 401(k) matching works in real life:

Let’s say a person is 30 years old, with a salary of $50,000, contributing 3% of their salary (or $1,500) to a 401(k). Let’s also say they keep making $50,000 and contributing 3% every year until they’re 65. They will have put $52,500 into their 401(k) in those 35 years.

Now let’s say they opt into an employer match with a dollar-for-dollar up to 3% formula. Putting aside the likelihood of an increase in the value of the investments, they’ll have saved $105,000 — with $52,500 in free contributions from their employer.

That, effectively, is a no-cost way to increase retirement savings by 100%.

Average 401(k) Match

Average 401(k) matches is generally around 4% or 5%, and can vary from year to year. With that in mind, workers who are getting an employer match in that range, or within a broader range — perhaps 3% to 6% — are likely getting a “good” match.

But again, considering that some employers don’t offer any match at all, the chance to secure almost any type of match could be considered good for some investors.

Contribution Limits When 401(k) Matching

When deciding how much to contribute to a 401(k) plan, many factors might be considered to take advantage of a unique savings approach:

•   If a company offers a 401(k) employer match, the participant might consider contributing enough to meet whatever the minimum match requirements are.

•   If a participant is closer to retirement age, they’ll probably have a pretty good idea of what they already have saved and what they need to reach their retirement goals. An increase in contributions can make a difference, and maxing out their 401(k) might be a solid strategy.

A retirement calculator can also be helpful in determining what the right contribution amount is for a specific financial situation.

In addition to the uncertainty that can come with choosing how much to contribute to a 401(k), there’s the added pressure of potential penalties for going over the maximum 401(k) contribution limit.

Three common limits to 401(k) contributions:

1.    Elective deferral limits: Contribution amounts chosen by an employee and contributed to a 401(k) plan by the employer. In 2024, participants can contribute up to $23,000. In 2025, participants can contribute up to $23,500.

2.    Catch-up contribution limits: After the age of 50, participants can contribute more to their 401(k) with catch-up contributions. In 2024 and 2025, participants can make up to $7,500 in catch-up contributions per year. In 2025, those aged 60 to 63 may contribute an additional $11,250, instead of $7,500, thanks to SECURE 2.0.

3.    Employer contribution limits: An employer can also make contributions and matches to a 401(k). The combined limit (not including catch-up contributions) on employer and employee contributions in 2024 is $69,000 and in 2025 is $70,000.

If participants think their total deferrals will exceed the limit for that particular year, the IRS recommends notifying the plan to request the difference (an “excess deferral”) “be paid out of any of the plans that permit these distributions. The plan must then pay the employee that amount by April 15 of the following year (or an earlier date specified in the plan).”

💡 Quick Tip: Did you know that opening a brokerage account typically doesn’t come with any setup costs? Often, the only requirement to open a brokerage account — aside from providing personal details — is making an initial deposit.

401(k) Vesting Schedules

Vesting ” means “ownership” in a retirement plan. The employee will vest, or own, some percent of their account balance. In the case of a 401(k), being 100% vested means they’ve met their employer’s vesting schedule requirements to ensure complete ownership of their funds.

Vesting schedules, determined by 401(k) plan documents, can lay out certain employer vesting restrictions that range from immediate vesting to 100% vesting after three years to a schedule that increases the vested percentage based on years of service. Either way, all employees must be 100% vested if a plan is terminated by the employer or upon reaching the plan’s standard retirement age.

Tips on Making the Most of 401(k) Matching

Here are some things to keep in mind when trying to make the most of 401(k) matching.

Remember: It’s “Free” Money

An employer match is one part of the overall compensation package and another way to maximize the amount of money an employer pays their employees. Those employees could be turning their backs on free money by not contributing to an employer-matched 401(k) plan.

You Can Reduce Taxable Income

According to FINRA, “with pre-tax contributions, every dollar you save will reduce your current taxable income by an equal amount, which means you will owe less in income taxes for the year. But your take-home pay will go down by less than a dollar.”

If a participant contributed $1,500 a year to a 401(k), they’d only owe taxes on their current salary minus that amount, which could save some serious money as that salary grows.

Every Dollar Counts

It can be tempting to avoid contributing to your retirement plan, and instead, use the money for something you want or need now. But remember: The more time your money has to potentially grow while it’s invested, the more likely you are to reach your financial goals sooner. While that’s not guaranteed, every dollar you can save or invest now for future use is a dollar you don’t need to save or invest later.

The Takeaway

A 401(k) match is an employee benefit that allows an employer to contribute a certain amount to their employee’s 401(k) plan. Matches can be based on a percentage of the employee’s contribution, up to a certain portion of their total salary or a set dollar amount, depending on the terms of the plan.

Taking advantage of employer matches in a 401(k) plan can help workers reach their financial goals sooner, as a match is, in effect, “free money.” If you’re considering how matches can help bolster your investment strategy, it may be worth discussing with a financial professional.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Help grow your nest egg with a SoFi IRA.

FAQ

How much should I match 401(k)?

It’ll be up to the individual investor, but to make the most of a 401(k) match, workers should likely try to contribute as much as possible up to their employer’s match — it may be worth discussing with a financial professional for additional guidance.

What does 6% 401(k) match mean?

A 6% 401(k) match means that an employer is willing to match up to 6% of an employee’s total salary or compensation in their 401(k) account through matching contributions.

What is a good 401(k) match?

A good 401(k) match could be in the 3% to 6% range, as average employer matches tend to be between 4% and 5%.

Is a 3% match good? Is a 4% match good?

Generally speaking, a 3% match could be considered “good,” as could a 4% match. On average, employers match somewhere between 4% and 5%, and when you get down to it, almost any employer match is “good.”

How do I maximize my 401(k) match?

Maximizing your 401(k) match involves contributing enough to get at least your employer’s full match, whatever that match may be. You should be able to change your contribution levels through your provider, or by speaking with your employer.


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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.
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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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What Is an Itemized Deduction?

Guide to Itemized Deductions

Tax deductions enable taxpayers to reduce their total taxable income. That can be a very good thing: It can result in a lower tax bill or, if you had too much withheld through the year, a larger refund.

While most people now take the standard deduction — especially since the Tax Cuts and Jobs Act of 2017 effectively doubled the standard deduction amount — some taxpayers may benefit from itemizing their deductions.

Doing so can be a somewhat complicated and time-consuming process, but it may save you money. Here’s your guide to itemizing deductions; read on to learn:

•  What is an itemized deduction?

•  How do itemized deductions differ from standard deductions?

•  What are examples of itemized deductions?

•  What are the pros and cons of itemizing deductions?

What Is an Itemized Deduction?

Itemized deductions are a strategy to lower your adjusted gross income for a tax year. Rather than taking a set standard deduction whose amount is determined by the Internal Revenue Service (IRS), some taxpayers choose to calculate all deductions for which they’re eligible. They can then decrease their taxable income by that amount.

It’s worthwhile for some taxpayers to do the math and see how much they can reduce their tax bill by itemizing. That said, many may realize they can actually reduce their taxable income more by taking the standard deduction. Why? The standard deduction is much larger than it used to be since the passing of the Tax Cuts and Jobs Act at the end of 2017.

For the 2024 tax year (filing in 2025), the standard deduction is:

•  $14,600 for single tax filers ($15,000 for tax year 2025)

•  $21,900 for heads of household ($22,500 for tax year 2025)

•  $29,200 for married couples filing jointly ($30,000 for tax year 2025)

Almost everyone can take the standard deduction — and there’s a lot less math and paperwork involved. But for a unique set of taxpayers, itemized deductions could yield an even larger tax liability reduction than what the IRS offers through the standard deduction.

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Itemized vs. Standard Deduction: What’s the Difference?

So what are the differences between itemized deductions and the standard deduction? Let’s take a look.

•  Dollar amount: The standard deduction is a set amount. If you choose the standard deduction, you cannot reduce your tax liability further by tacking on itemized deductions. When itemizing, the amount by which you reduce your tax burden varies depending on your unique tax situation. In nearly every case, it only makes sense to itemize if the resulting deduction is larger than the standard deduction or if you aren’t eligible to take the standard deduction.

•  Process: Claiming the standard deduction is straightforward. You don’t need to produce receipts and sort through expenses. If you itemize, you’ll need to educate yourself about all the deductions for which you qualify, produce the proof that you qualify in case of a tax audit, and fill out what is known as Schedule A on your tax return.

•  Eligibility: Anyone can itemize their deductions, but the standard deduction has a few exceptions. For example, if you’re married but filing separately and your spouse itemizes, you must itemize as well. While almost everyone is eligible to take the standard deduction, it never hurts to check with the IRS or your accountant to ensure eligibility.

Recommended: How to Pay Less Taxes: 9 Simple Steps

How Do Itemized Deductions Work?

Now that you know what itemized deductions vs. standard ones are, consider a more specific example of how they work.

Itemized deductions reduce your overall tax liability, just like the standard deduction. The catch? You can only take the itemized deductions for which you’re eligible. If you can cobble together enough itemized deductions to equal a larger tax-liability reduction than the standard amount, it could be worth itemizing.

As an example, let’s assume your gross income was $100,000.

•  The standard deduction for this income for tax year 2024 is $14,600 for single filers, so your taxable income would be $85,400.

•  Let’s suppose your itemized deductions are worth $20,000. It will lower your taxable income to $80,000.

Because your itemized deductions are greater than the standard deduction, it makes sense to itemize. Doing so will lower your taxable income and can thereby reduce the taxes you pay.

While it may take longer to calculate your deductions and prepare your tax return, it may make good financial sense to keep that extra cash in your pocket (or savings account, as the case may be).

Types of Itemized Deductions

The IRS offers an extensive list of potential itemized tax deductions, but you’ll probably only qualify for a handful. Here are a few of the most common:

•  Property tax deduction

•  Mortgage interest deduction

•  Charitable contribution deduction

•  Deduction of state and local sales taxes

•  Deduction of certain medical and dental expenses

While the IRS used to have a long list of miscellaneous deductions — from moving expenses to unreimbursed job expenses to tax preparation fees — many of these disappeared with the Tax Cuts and Jobs Act.

Independent contractors may want to consider itemizing; check out the tax deductions for freelancers to see which ones you may qualify for. As you itemize your business expenses, pay attention to the home office tax deduction, as well as how much you spend on office supplies, travel, and other business-related expenses. Make sure to keep good documentation of what you’ve paid.

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How to Claim an Itemized Deduction

To claim itemized tax deductions on your return, you’ll need to fill out IRS Schedule A with your Form 1040. Here’s what that process looks like:

1.   Research itemized deductions. It’s helpful to know which deductions you qualify for — and to gather up necessary documentation to enter in all the information beforehand. Preparing for tax season can make the process go much more smoothly!

2.   Fill out Schedule A. You’ll enter in all your expenses and add them up to get your total deduction.

3.   Compare it to the standard deduction. Before copying that total over to your Form 1040, it’s wise to reference the standard deduction for your filing status this year. Once you’re sure that the itemized deduction can yield larger savings, you can write down the number on Form 1040 and continue filing your taxes.

While the process sounds straightforward, it can be difficult to find out which deductions you’re eligible for and how to tabulate all your expenses. If you’re unsure, it may be a good idea to work with an accountant or at least professional tax preparation software.

Recommended: How to File Taxes for the First Time

Pros and Cons of Itemized Deductions

So what are the benefits and drawbacks of itemizing your deductions? Let’s take a look.

Pro: Itemizing could help lower your taxable income and save you more money than the standard deduction.
Con: Given changes to tax law a few years back, there’s a good chance you may save more with the standard deduction.
Pro: Because you’re writing off certain expenses and know which expenses are deductible, you may be more prudent with your spending habits throughout the year.
Con: Itemizing can involve a lot more paperwork and effort. It can be confusing, and you must make sure you’re only itemizing deductions for which you actually qualify to avoid trouble with the IRS.

The Takeaway

Most people will likely save more money on their taxes with the standard deduction, but depending on your scenario, you could see a greater reduction in your tax liability by itemizing. If you have the time, it may be worth it to go through the process of itemizing, just to see if you could save money. If you can, great! And if not, the standard deduction also offers great savings.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

Can anyone itemize a deduction?

All taxpayers are permitted to itemize deductions, but the Tax Cuts and Jobs Act has made it less attractive to itemize for many Americans. Why? The standard deduction essentially doubled in size, while fewer expenses became eligible for itemizing.

Still, it may be worth calculating your itemized deductions to see if you can save more than you would with the standard deduction.

What are some things that you cannot itemize?

Since the Tax Cuts and Jobs Act, there are fewer things that you can itemize on your tax return. Even some popular deductions that people used to take are no longer eligible, including moving expenses, tax preparation fees, and unreimbursed business expenses.

Many deductions have a lot of fine print — both for inclusion and exclusion — so it’s a good idea to work with an accountant or professional tax preparation software to determine what counts as an itemized deduction.

Do you need proof for itemized deductions?

Generally, you should have proof for expenses that you are claiming as an itemized deduction. Such documentation would prove that you paid the expenses and that they were eligible for the deduction. The IRS calls this the burden of proof.


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SoFi members with direct deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

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The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.


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

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


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Should You Pay Off Your Mortgage Early?

Paying off a mortgage early, if doable, seems like the smartest plan in the world. But the question remains: Should you pay off your mortgage early? Dedicating most of your money to a home loan means you may not be able to fund your business, investments, a college fund, an emergency fund, travel, or fun purchases.

There are a lot of scenarios where your money may be put to better use elsewhere.

Here’s what to consider before you decide to go all-in on paying off your mortgage early.

Key Points

•   A solid emergency fund is essential before considering early mortgage payoff to ensure financial stability.

•   Fully funding retirement accounts should be a priority due to potential higher returns and tax benefits.

•   Strategies for early mortgage payoff include biweekly payments, refinancing, recasting, and lump-sum payments.

•   High-interest debt should be addressed before focusing on early mortgage payoff.

•   Early mortgage payoff reduces monthly expenses and interest costs, beneficial before retirement.

When Should You Pay Off Your Mortgage Early?

Sometimes paying off your mortgage early could make sense. For example:

You Have a Rainy Day Fund

You have emergency savings, the three to six months of living expenses in reserve that most experts recommend.

And your college savings plan, if that’s a need, is funded.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

Questions? Call (888)-541-0398.


You’re Funding Your Retirement

You’re contributing the max to your 401(k), IRA, and other retirement accounts. If that’s not the case, you may want to do that before paying off the mortgage.

You Want to Reduce Monthly Expenses Ahead of Retirement

If a mortgage takes up a large portion of your monthly expenses, it may make sense to eliminate the mortgage payment if you know you’re going to be on a limited income soon (such as retirement).

You Want to Save on Interest Costs

Take a look at the loan you signed, or any mortgage calculator tool for that matter. On many standard 30-year loans, you will pay just as much in interest as you do in principal. Paying off a home mortgage loan early could save you a lot of money in interest over the life of a home loan.

Reasons to Hold Off on Paying Off Your Mortgage Early

If you’re in the fortunate position of contemplating paying off your mortgage early, there are a few reasons to rethink doing so.

Investment Offers Possibility of Higher Return

If investments provide a return greater than the interest rate you’re paying on your mortgage, it may not make sense to pay off your home loan right now. Remember, past performance doesn’t guarantee future returns, so you’ll want to periodically evaluate how investments are performing against your mortgage interest rate. Many investments also have better liquidity than a mortgage. However, you’ll want to make sure to consider your risk tolerance and investment objectives when deciding to invest instead of paying down your mortgage.

What about buying a rental property instead of paying off a mortgage? Purchasing investment property could generate cash flow, and adding to a real estate portfolio is one way to build generational wealth.

You Still Have High-Interest Debt

Mortgages tend to have much lower interest rates than credit cards do. If you’re a “revolver” who carries balances from one month to the next, or in a family of revolvers, paying off that debt first makes sense.

Nearly half of U.S. families report having revolving balances on one or more of their credit cards, with the average revolving family owing over $6,000, recent data shows.

How to Pay Off Your Mortgage Early

If paying off your mortgage makes sense for your financial situation, it’s helpful to know how to pay off your mortgage early. A handful of strategies may work for different types of mortgages.

Biweekly or Extra Monthly Payment

One strategy homeowners use to pay off their mortgage early is to pay biweekly. If you pay every two weeks instead of monthly ($1,000 every two weeks, for example, instead of $2,000 a month), by the end of the year you’ll have made a full extra payment. Mortgage servicers may charge fees if you do this, though.

If you want to get more aggressive, making an extra payment every month will decrease the principal quickly. You’ll want to make sure the payment is applied to principal only.

Paying a bit extra every month is one sure way to shrink total interest paid and the loan term. For a mortgage loan of $450,000 at a 5.6% fixed rate for 30 years, total interest paid would be $480,008. Putting $400 more toward the mortgage payment every month would whittle total interest paid to $329,881 — a savings of $150,127. And the mortgage would be paid off in 21 years and 10 months instead of 30 years.

Refinance to a Shorter Term

Changing a 30-year mortgage to a 15-year term with a mortgage refinance will likely result in a larger monthly payment (depending on how much you owe) but a substantial amount in interest savings.

With a shorter mortgage term, payments eat into the principal more quickly. If you stack extra payments on top of a 15-year mortgage, you’ll quickly decrease your loan balance on your way to a paid-off mortgage. Refinancing doesn’t have to happen with your current lender, so consider shopping for a mortgage to see what rate and terms you can get if you are going this route.

Recast Your Mortgage

Recasting your mortgage involves making a large lump sum payment toward the principal and having your lender reamortize the mortgage. Your monthly mortgage payment will be recalculated based on how much you owe after the large payment. The term and interest rate will stay the same.

With a recast, you don’t have to go through the application process, and the administrative fee is usually a few hundred dollars.

To decide on a mortgage recast vs. refinance, weigh the pros and cons of each.

Make Lump-Sum Payments

Making lump sum payments will go far toward paying down your mortgage. Just make sure the payments go directly toward the principal.

Get a Loan Modification

A loan modification alters the terms of your original loan to make it more affordable, which could ultimately lead to an earlier mortgage payoff date. This mortgage relief option is reserved for those experiencing financial hardship.

Changes to the terms of the mortgage are designed to potentially lower the mortgage payment so that the homeowner avoids foreclosure. Talk to your lender if you’re thinking about going this route.

Recommended: Home Loan Help Center

The Takeaway

Paying off your mortgage early is a lofty goal, but if you have other financial needs or can make a better return elsewhere, it may make sense to keep your mortgage. Make sure you consider all options before you make your decision.

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

Do property taxes go up when you pay off your mortgage?

No. Property taxes do not change based on whether or not you’ve paid off your mortgage. If you do pay off your mortgage, it might seem like you’re paying more because you’ll pay taxes all at once or in a couple larger installments.

What happens to escrow when you pay off your mortgage?

When a mortgage is paid off, an escrow account, if one was in place, is closed. Homeowners will need to contact their property insurance company and taxing entity to have the charges sent directly to them. If there is extra money in the escrow account, it will be sent back to the homeowner when the mortgage is paid off and the escrow account is closed.

How does paying off your mortgage early affect your credit score?

Your credit score won’t be greatly affected by paying off your mortgage early. The account will remain on your credit for 10 years as a closed account in good standing.


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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.


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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.


*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.

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

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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