What Happens to a 401k When You Leave Your Job?

What Happens to Your 401(k) When You Leave Your Job?

There are many important decisions to make when starting a new job, including what to do with your old 401(k) account. Depending on the balance of the old account and the benefits offered at your new job, you may have several options, including keeping it where it is, rolling it over into a brand new account, or cashing it out.

A 401(k) may be an excellent way for employees to save for retirement, as it allows them to save for retirement on a tax-advantaged basis, and also many employers offer matching contributions. Here are a few things to know about keeping track of your 401(k) accounts as you change jobs and move through your career

Key Points

•   When leaving a job, you have options for your 401(k) account, including leaving it with your former employer, rolling it over into a new account, or cashing it out.

•   If your 401(k) balance is less than $5,000, your former employer may cash out the funds or roll them into another retirement account.

•   If you have more than $5,000 in your 401(k), your former employer cannot force you to cash out or roll over the funds without your permission.

•   If you quit or are fired, you may lose employer contributions that are not fully vested.

•   It is important to consider the tax implications, penalties, and long-term financial security before making decisions about your 401(k) when leaving a job.

Quick 401(k) Overview

A 401(k) is a type of retirement savings plan many employers offer that allows employees to save and invest with tax advantages. With a 401(k) plan, an employer will automatically deduct workers’ contributions to the account from their paychecks before taxes are taken out. In 2024, employees can contribute up to $23,000 a year in their 401(k)s, up from $22,500 in 2023. Employees age 50 and older can make catch-up contributions of $7,500 a year for a total of $30,500 in 2024 and $30,000 in 2023.

Employees will invest the funds in a 401(k) account in several investment options, depending on what the employer and their 401(k) administrator offer, such as stocks, bonds, mutual funds, and target date funds.

The money in a 401(k) account grows tax-free until the employee withdraws it, typically after reaching age 59 ½. At that point, the employees must pay taxes on the money withdrawn. However, if the employee withdraws money before reaching 59 ½, they will typically have to pay 401(k) withdrawal taxes and penalties.

Some employers also offer matching contributions, which are additional contributions to an employee’s account based on a certain percentage of the employee’s own contributions. Employers may use 401(k) vesting schedules to determine when employees can access these contributions.

The more you can save in a 401(k), the better. If you can’t max out your 401(k) contributions, start by contributing at least enough money to qualify for your employer’s 401(k) match if they offer one.

What Happens to Your 401(k) When You Quit?

When you quit your job, you generally have several options for your 401(k) account. You can leave the money in the account with your former employer, roll it into a new employer’s 401(k) plan, move it over to an IRA rollover, or cash it out.

However, if your 401(k) account has less than $5,000, your former employer may not allow you to keep it open. If there is less than $1,000 in your account, your former employer will cash out the funds and send them to you via check. If there is between $1,000 and $5,000 in the account, your employer has 60 days to roll it into another retirement account, such as an IRA, that they help you set up. You may also suggest a specific IRA for the rollover.

If you have more than $5,000 in your account, your former employer can only force you to cash out or roll over into another account with your permission. Your funds can usually remain in the account indefinitely.

Also, if you quit your job and you are not fully vested, you forfeit your employer’s contributions to your 401(k). But you do get to keep your vested contributions.

Is There Any Difference if You’re Fired?

If you are fired from your job, your 401(k) account options are similar to those if you quit your job. As noted above, you can leave the money in the account with your former employer, roll it into a new employer’s 401(k) plan, roll it over into an IRA, or cash it out. The same account limits mentioned above apply as well.

Additionally, if you are fired from your job, you may be eligible for a severance package, which may include a lump sum payment or continuation of benefits, including a 401(k) plan. But these benefits depend on your company and the circumstances surrounding your termination. And, like with quitting your job, you do not get to keep any employer contributions that are not fully vested.

How Long Do You Have to Move Your 401(k)?

If you leave your job, you don’t necessarily have to move your 401(k). Depending on the amount you have in the 401(k), you can usually keep it with your previous employer’s 401(k) administrator.

But if you do choose to roll over your 401(k) and it is an indirect rollover, you typically have 60 days from the date of distribution to roll over your 401(k) account balance into an IRA or another employer’s 401(k) plan. If you fail to roll over the funds within 60 days, the distribution will be subject to taxes and penalties, and if you are under 59 ½ years old, an additional 10% early withdrawal penalty.

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.

Next Steps for Your 401(k) After Leaving a Job

As you decide what to do with your funds, you have several options, from cashing out to rolling over your 401(k)s to expanding your investment opportunities.

Cash Out Your 401(k)

You can cash out some or all of your 401(k), but in most cases, there are better choices than this from a personal finance perspective. As noted above, if you are younger than 59 ½, you may be slammed with income taxes and a 10% early withdrawal penalty, which can set you back in your ability to save for your future.

If you are age 55 or older, you may be able to draw down your 401(k) penalty-free thanks to the Rule of 55. But remember, when you remove money from your retirement account, you no longer benefit from tax-advantaged growth and reduce your future nest egg.

Roll Over Your 401(k) Into a New Account

Your new employer may offer a 401(k). If this is the case and you are eligible to participate, you may consider rolling over the funds from your old account. This process is relatively simple. You can ask your old 401(k) administrator to move the funds from one account directly to the other in what is known as a direct transfer.

Doing this as a direct transfer rather than taking the money out yourself is important to avoid triggering early withdrawal fees. A rollover into a new 401(k) has the advantage of consolidating your retirement savings into one place; there is only one account to monitor.

Keep Your 401(k) With Your Previous Employer

If you like your previous employer’s 401(k) administrator, its fees, and investment options, you can always keep your 401(k) where it is rather than roll it over to an IRA or your new employer’s 401(k).

However, keeping your 401(k) with your previous employer may make it harder to keep track of your retirement investments because you’ll end up with several accounts. It’s common for people to lose track of old 401(k) accounts.

Moreover, you may end up paying higher fees if you keep your 401(k) with your previous employer. Usually, employers cover 401(k) fees, but if you leave the company, they may shift the cost onto you without you realizing it. High fees may end up eating into your returns, making it harder to save for retirement.

Does Employer Match Stop After You Leave?

Once you leave a job, whether you quit or are fired, you will no longer receive the matching employer contributions.

Recommended: How an Employer 401(k) Match Works

Look for New Investment Options

If you don’t love the investment options or fees in your new 401(k), you may roll the funds over into an IRA account instead. Rolling assets into a traditional IRA is relatively simple and can be done with a direct transfer from your 401(k) plan administrator. You also may be allowed to roll a 401(k) into a Roth IRA, but you’ll have to pay taxes on the amount you convert.

The advantage of rolling funds into an IRA is that it may offer a more comprehensive array of investment options. For example, a 401(k) might offer a handful of mutual or target-date funds. In an IRA, you may have access to individual securities like stocks and bonds and a wide variety of mutual funds, index funds, and exchange-traded funds.

Recommended: ​​What To Invest In Besides Your 401(k)

The Takeaway

Changing jobs is an exciting time, whether or not you’re moving, and it can be a great opportunity to reevaluate what to do with your retirement savings. Depending on your financial situation, you could leave the funds where they are or roll them over into your new 401(k) or an IRA. You can also cash out the account, but that may harm your long-term financial security because of taxes, penalties, and loss of a tax-advantaged investment account.

If you have an old 401(k) you’d like to roll over to an online IRA, SoFi Invest® can help. With a SoFi Roth or Traditional IRA, investors can investment options, member services, and our robust suite of planning and investment tools. And SoFi makes the 401(k) rollover process seamless and straightforward — with no need to watch the mail for your 401(k) check. There are no rollover fees, and you can complete your 401(k) rollover quickly and easily.

Help grow your nest egg with a SoFi IRA.

FAQ

How long can a company hold your 401(k) after you leave?

A company can hold onto an employee’s 401(k) account indefinitely after they leave, but they are required to distribute the funds if the employee requests it or if the account balance is less than $5,000.

Can I cash out my 401(k) if I quit my job?

You can cash out your 401(k) if you quit your job. However, experts generally do not advise cashing out a 401(k), as doing so will trigger taxes and penalties on the withdrawn amount. Instead, it is usually better to either leave the funds in the account or roll them over into a new employer’s plan or an IRA.

What happens if I don’t rollover my 401(k)?

If you don’t roll over your 401(k) when you leave a job, the funds will typically remain in the account and be subject to the rules and regulations of the plan. If the account balance is less than $5,000, the employer may roll over the account into an IRA or cash out the account. If the balance is more than $5,000, the employer may offer options such as leaving the funds in the account or rolling them into an IRA.


Photo credit: iStock/chengyuzheng

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.

SOIN1222030

Read more

Money Personality Quiz

Are you all about saving, spending, or do you hide your head in the sand when it comes to personal finance matters? This money personality quiz helps you uncover your money style. That, in turn, can be a way to learn about your strengths and weaknesses and manage your cash that much better.

Each person handles their money in a unique way. Some people are laser-focused on saving and building their nest egg. Others believe that money is there to be spent on fun and satisfying purchases and experiences. And still others would prefer to look the other way when talk turns to 401(k)s and IRAs.

By knowing your money M.O., you can take steps to enhance your financial status. Ready? Read on for the details.

What’s Your Money Personality?

Steady Saver

Did the money personality quiz say you’re a steady saver? That likely means that you are well aware of your monthly budget and how much cash is coming in and going out. In addition, you are probably following the standard financial advice to save at least 10% or 20% of your take-home pay.

You may well be investing that in a 401(k) and getting a company match and putting funds into an IRA, too.

You are the kind who may have multiple bank accounts, with savings for various short- and long-term goals, such as the down payment on a home and your toddler’s future educational needs. Heck, you might even brag a little to friends and family about how much you have socked away.

Overall, you have some very impressive financial habits down pat. Keep up the good work. However, are you missing out on living your best life? There is the possibility that you may be overdoing it and being perhaps a tad too rigid. Does saving for Junior’s college fund mean the family can’t take a vacation for the next 17 years? Check in with yourself, and make sure you aren’t overly focused on your future goals.

💡 Quick Tip: An online bank account with SoFi can help your money earn more — up to 4.00% APY, with no minimum balance required.

Get up to $300 when you bank with SoFi.

No account or overdraft fees. No minimum balance.

Up to 4.00% APY on savings balances.

Up to 2-day-early paycheck.

Up to $2M of additional
FDIC insurance.


Super Spender

To cut to the chase, you love the things that money can buy. Nothing wrong with that! Omakase dinners at that new Japanese restaurant, the perfect new dining table, the latest mobile device, and baby’s first Disney vacay: There are plenty of things that your income can buy that make daily life delightful and memorable.

But when you see money as simply a conduit for experiencing the best here and now, you are likely risking a couple of very important things:

• You may be incurring debt.

• You may not be planning for your future.

• You may be succumbing to lifestyle creep vs. building wealth.

So here are some steps to take:

• Consider whether you are saving towards the important milestone goals that many people aspire to, such as the down payment on a home, a college fund for your kids, and a healthy retirement account.

Meeting with a financial advisor may be a wise move to get you on track for saving for these aspirations and perhaps learning more about the fine points of investing.

• Take a look at your budget, or make one if you don’t yet have one. Among the various budgeting methods is the popular 50/30/20 rule, which says to put 50% of your take-home towards needs, 30% to wants, and 20% towards savings and additional debt payments.

• Check in with your credit card debt. You don’t want your balances and credit utilization ratio to get too high. If you find you are facing challenges, consider a snagging balance transfer credit card offer, using a lower-interest personal loan to pay off credit card debt, or working with a nonprofit credit counseling agency to reduce your load.

The Money Shunner

If the money personality quiz indicates that you’re a money shunner, it may mean you are not comfortable with financial matters so you choose to look the other way. Many people feel stressed when thinking about money, whether because they don’t think they are good with numbers or they don’t have a solid base in personal finances (after all, you probably didn’t sit through a budgeting basics class in high school).

But if you tend to avoid money matters, you could be missing opportunities to reach your personal goals and gain a sense of security.

To gain financial literacy, you can dip into self-education. Your bank may have a library of content, or you can try well-respected books, magazines, newsletters, and podcasts. You might also take a class, whether in person or online.

In addition, meeting with a financial advisor could be helpful.

You may also want to pay more attention to your budget and understand your income and how much you’re spending and saving. These steps can help you make friends with your money and get it to work harder for you.

Recommended: Getting Back on Track After Going Over Budget

The Takeaway

A money personality quiz can reveal what your relationship with your finances is like. It can help identify whether you tend to be focused on saving (perhaps too much so), spend a bit too freely, or don’t pay enough attention to your cash. By tweaking your approach, you could build your financial literacy and wealth. Making sure you have the right advisors and banking partner are other important facets of this.

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 4.00% APY on SoFi Checking and Savings.

FAQ

What are some common money personality types?

There are different ways to categorize money personalities. You may see ones that use the terms spender, saver, and avoider, among others.

How do I know if my money style is too much about spending?

Typical signs that your money style involves too much spending can be having a large amount of credit card debt, living paycheck to paycheck, and not saving enough (or at all).

If my money style is a saver, isn’t that good?

Saver can be an excellent habit and can help you reach your financial goals and be prepared for whatever comes your way. However, you likely don’t want to go overboard and should enjoy your earnings as well.


Photo credit: iStock/stockfour

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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.


SoFi members with direct deposit activity can earn 4.00% 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 4.00% 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 4.00% 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.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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

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

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.

SOBK1023050

Read more

Mindful Traveling: How to Keep Your CO2 Footprint Low While Traveling

Whether you’re looking to tour a foreign city, relax on a sandy beach, or hike in the wilderness — there are steps you can take to keep your carbon footprint low and still enjoy your vacation to the fullest.

But first, you’ll want to keep some key facts in mind: Tourism contributes to more than 5% of global greenhouse gas emissions, with transportation accounting for 90% of this. Tourism also puts pressure on local natural resources through over-consumption, often in places where resources are already limited. These effects can gradually destroy the environmental resources that tourism — and local economies —- depend on.

But there is some good news. By prioritizing mindful, sustainable travel, we can minimize the impact of our travels, and potentially even make travel beneficial for the climate and environment, as well as local communities and economies.

Here’s a look at some simple ways to become a more mindful traveler.

What Is Eco-Friendly Travel?

Being an eco-conscious traveler involves making travel choices that minimize negative impacts to the environment, both globally and locally.

It generally involves a little extra prep work, such as researching destinations that promote sustainable tourism, staying in hotels that have environmentally-conscious policies, and choosing more sustainable transportation, dining, and shopping practices.

Fortunately, a growing number of tourists are doing just that. According to a 2023 report from Booking.com, more than three-quarters of travelers want to travel more sustainably, and roughly the same amount want travel companies to offer more sustainable travel choices.

Recommended: Traveling the National Parks on a Budget

How To Reduce Your Carbon Footprint While Traveling

Here are some things you can do to minimize your carbon footprint and CO2 emissions on your next vacation.

Where You Go

Certain cities (like Barcelona and Paris) attract legions of tourists every year, leading to overcrowding — and not always the most authentic travel experience. Consider giving your tourist dollars to an area that is known for its green practices instead.

Ljubljana, Slovenia, for example, was recently voted the greenest city in the EU. You might also consider Palau, which requires visitors to make a sustainability pledge before entering the country, or Costa Rica, which is well regarded for its sustainable tourism.

Going off the beaten path can also mean a more affordable family vacation.

Where You Stay

Hotels and other lodging options generate emissions from energy use. For example, it takes energy to cool and heat rooms, provide warm water for showers and pools, and to keep the lights on. Indeed, hotels in the U.S. alone create 60 million tons of CO2, generate 1.9 billion pounds of waste, and use 219 billion gallons of water every single year.

To reduce your CO2 footprint when traveling, seek out hotels that have environmentally-friendly policies and review their eco credentials and practices before booking your stay. Also consider staying in a locally owned hotel, since they are more likely to source their supplies from the local area.

During your stay you can do your part by reusing towels, turning off lights and air conditioners when you aren’t there, and skipping single-use plastic items.

Recommended: Tips to Cut Costs When Traveling With Pets

Packing Light — and Right

Before you even start your travels, you can minimize your environmental impact. Packing light is not only good for your wallet (no additional checked bag fees) and arms (rolling around two large suitcases through a crowded airport is never fun), heavy suitcases can weigh down airplanes, as well as cars, and cause them to use more fuel.

What you put in the suitcase also matters. Bringing your own reusable water bottles allows you to avoid having to purchase throwaway plastic bottles. You can also choose luggage and other bags that are made from recycled materials to help reduce waste.

Recommended: International Travel Packing List

Getting There

Transportation is the biggests source of greenhouse gas emissions from tourism, so how you get to your vacation has a big impact.

Generally, planes and cars generate the most CO2 per passenger mile, with tour buses, ferries, and trains trialing well behind. Skipping the flight altogether, and opting for a closer destination that can be reached by train or requires a shorter driving distance, can help create a lower carbon footprint vacation.

But if you can’t avoid flying, you can make choices to lessen the environmental impact.

Choosing the most direct flights can not only save you time, but also fuel. Flying economy also lowers your C02 footprint, since flying business emits up to three times more carbon as it takes up more space. This can also lower your airfare.

Other eco-friendly flight moves: Fly during the day versus taking the redeye (there is a heat-trapping effect of contrails and cirrus clouds at night, resulting in a higher greenhouse effect) and book your ticket with an airline that offers a carbon offset program.

Recommended: Where to Keep Your Travel Fund

Getting Around

Once you’re at your vacation spot, you’ll want to walk, use public transportation, or rent bikes as much as possible. Not only are these eco-friendly transportation modes, they allow you to get more exercise and see more of the local area.

Choose Local

Small actions, like eating and shopping at places with locally-sourced food and products, can help lower your C02 footprint when you travel. Eating local cuisine also gives you a chance to experience a new culture through its food. Also consider booking tours with companies with environmental conservation policies that support the local community.

Volunteer to Plant Trees

As they grow, trees absorb carbon from the atmosphere, and can help offset your travel impact. Trees also reduce the amount of stormwater runoff, which limits erosion and pollution in local waterways, and may reduce the effects of flooding. Healthy forests also lead to habitat biodiversity.

To help offset your travel impact, consider volunteering to plant trees while you’re abroad (and also at home). This is a valuable service that benefits the environment, wildlife, and local communities.

Benefits of Reducing Your Carbon Footprint While Traveling

Tourism is responsible for a significant share of global greenhouse gas emissions, and that number is expected to rise. By 2030, CO2 emissions from tourism are expected to be 25% higher than they were in 2016.

But whether you are traveling solo or with your family, you can play a part in keeping that number down. Sustainable travel protects the environment to make sure wonders like coral reefs, rain forests, ancient ruins, and low-lying islands will continue to be around for local residents and future travelers. It also helps support local businesses, economies, and cultures throughout the world.

Examples of Mindful Traveling

There are many ways you can be an environmentally-friendly traveler. Examples of mindful travel include picking a destination that prioritizes sustainable tourism and/or choosing an area that is close to home to avoid air travel or an extensive drive.

You can also practice mindful travel once you arrive at your destination. Consider taking public transportation, walking, and renting bikes to get around and see the sites. If you can’t avoid renting a car, opt for an electric vehicle, if possible.

You can also reduce your CO2 travel footprint by staying in hotels that use renewable energy and have strong sustainability practices. You can do your part by recycling, eliminating food waste, and buying locally-sourced products.

Recommended: 6 Souvenirs You Won’t Regret Buying (and 5 You Might)

Mindful Traveling Tips

•   Do your research. Traveling more sustainably takes effort and planning. You may need to do some searching to find the most direct flights (if you have to fly) and to seek out lodging options that are energy-efficient, as well as affordable.

•   Be a responsible packer. You’ll want to pack light to avoid adding extra weight, and don’t forget refillable water bottles and toiletries.

•   Be a green explorer. Try to use public transportation, walk, or rent bikes to get around, and do your best to shop and eat at local businesses. Also consider staying in one location rather than moving around. This not only allows you to learn more about the culture, but also reduces carbon emissions from hopping from one place to another.

The Takeaway

You can still explore the world and minimize the impact travel has on the environment.

Being a sustainable traveler comes down to a little research. You can lower your carbon footprint by choosing trains and buses over planes and cars, finding lodging that has environmentally-friendly practices, and making eco-friendly decisions during the vacation on what you do and where you eat and shop.

SoFi Travel has teamed up with Expedia to bring even more to your one-stop finance app, helping you book reservations — for flights, hotels, car rentals, and more — all in one place. SoFi Members also have exclusive access to premium savings, with 10% or more off on select hotels. Plus, earn unlimited 3%** cash back rewards when you book with your SoFi Unlimited 2% Credit Card through SoFi Travel.

Wherever you’re going, get there with SoFi Travel.

FAQ

How do I become a mindful traveler?

Becoming a mindful traveler is simply a matter of understanding that all travel has an impact — to the environment as a whole, as well as the local ecosystems and communities.

You can become a more mindful traveler by choosing a destination that promotes sustainable tourism, being selective about your modes of transportation, staying in hotels with eco-friendly practices, and choosing more sustainable practices when it comes to food, shopping, and daily activities.

How do you stay mindful on vacation?

To stay mindful on vacation, you’ll want to be sure you are paying attention and savoring what’s happening in the moment, rather than thinking about work, what you did yesterday, or what you’re going to do tomorrow. Mindful travel also means being aware of, and trying to minimize, the impact your vacation has on the environment, both globally and locally,


Photo credit: iStock/SolStock

**Terms, and conditions apply: The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.

When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.


Eligibility: You must be a SoFi registered user.
You must agree to SoFi’s privacy consent agreement.
You must book the travel on SoFi’s Travel Portal reached directly through a link on the SoFi website or mobile application. Travel booked directly on Expedia's website or app, or any other site operated or powered by Expedia is not eligible.
You must pay using your SoFi Credit Card.

SoFi Member Rewards: All terms applicable to the use of SoFi Member Rewards apply. To learn more please see: https://www.sofi.com/rewards/ and Terms applicable to Member Rewards.


Additional Terms: Changes to your bookings will affect the Rewards balance for the purchase. Any canceled bookings or fraud will cause Rewards to be rescinded. Rewards can be delayed by up to 7 business days after a transaction posts on Members’ SoFi Credit Card ledger. SoFi reserves the right to withhold Rewards points for suspected fraud, misuse, or suspicious activities.
©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender. NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org).


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.

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.

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.

SOTL0124002

Read more

10 Travel Destinations Inspired by Your Favorite TV Shows

More than ever, travelers are taking inspiration from their favorite streaming and TV shows when choosing their next travel destination — a trend known as set-jetting.

According to recent research conducted by OnePoll for Expedia Brands, over half of travelers say they’ve researched or booked a trip to a destination after seeing it on a TV show or movie, and one in four state that TV shows and films are even more influential on their travel plans than they were before.

From channeling Heisenberg in Albuquerque to figuring out how to be one of the “Last of Us” in Boston, here’s a look at 10 top TV travel destinations across the U.S. and beyond.

10 Travel Destinations Inspired by TV Shows

To recreate the magic of your favorite television shows, consider visiting one of these must-see TV destination sites and cities.

1. Alberta, Canada: The Last of Us

When it debuted in January 15, 2023, The Last of Us took America’s TV-watching audiences by storm — and made for an excellent excuse to visit its filming locations in real life. While the storyline positions characters in American locales like Boston and Jackson Hole, in reality, much of the show was shot in Alberta, Canada. Filming was done both in the region’s major cities, like Calgary and Edmonton, as well as more rural areas that show the vast emptiness of what was left after the fungal brain infection devastated mankind.

Travel bonus: In some situations, you don’t need a passport to cross into Canada by land or sea from the U.S.

2. Albuquerque, New Mexico: Breaking Bad

Given that it first aired in 2008, Breaking Bad is officially an oldie, but still a goodie — and Albuquerque, New Mexico, along with the stunning scenery that surround it, continue to be hot destinations for fans. Within Albuquerque itself, die-hards can visit the Dog House, which is a real restaurant of the same name, as well as the Whites’ car wash, the storefront that served as Los Pollos Hermanos, and much more. In fact, there are guided tours to make the process that much easier for you!

Recommended: Tips For Finding The Top Travel Deals

3. New York City: Succession (and Friends, Seinfeld, Sex and the City, and more)

While New York’s most recent beloved television cameo may arguably be Succession, the town has been the setting of countless TV shows and movies — so no matter where you go in the Big Apple, you’re ripe for some déjà vu from the small screen. For Succession fans, specifically, downtown Manhattan is home to The Woolworth Building — i.e., Rava Roy’s home — as well as the Four Seasons Private Residences, just one of the homes of Kendall Roy. Battery Park, where the show’s famed closing sequence was shot, is also worth visiting even if you’ve never seen a single episode.

4. Okmulgee, Oklahoma: Reservation Dogs

While Okern, Oklahoma — the setting of Reservation Dogs — is fictional, Okmulgee, the town where most of the scenes are shot, is not. Just shy of two hours east of Oklahoma CIty, Okmulgee is indeed within the bounds of a Muscogee (Creek) Nation Reservation, and its name comes from a Muscogee word “okimulgee,” meaning “boiling waters.”

5. Goodwood, Ontario, Canada: Schitt’s Creek

Ew, David! — is fortunately not something you’re likely to say if you visit Goodwood, Ontario, the tiny town chosen to represent the titular setting of Schitt’s Creek. In reality, this middle-of-nowhere burg is located just an hour and a half outside of downtown Toronto, and generously welcomes tourist-fans hoping to step foot into their favorite fictional small town. (Several of the show’s filming locations are marked right on Google maps.) It’s a great example of travel destinations inspired by TV shows.

Recommended: How Families Can Afford to Travel on Vacation

6. London, England: Ted Lasso and Bridgerton

A trip to London puts you amidst tons of TV history, most recently Ted Lasso and Bridgerton. Searches for Richmond in London increased by 160% after season two of Ted Lasso aired, and they doubled after season three aired, according to the Expedia poll. If you’re missing everyone’s favorite coach, you can meander through the town of Richmond in southwest London, enjoy a pint in The Prince’s Head (the setting for the show’s favorite watering hole, The Crown & Anchor), walk Coach Lasso’s street (Paved Court), and kick a ball around Richmond Park.

If you’re on a streaming-inspired vacation, you might next jump on a train from Richmond to Hampton Court. Within an hour, you’ll arrive near Hampton Court Palace where Queen Charlotte: A Bridgerton Story was filmed.

7. Oahu, Hawaii: Lost

Looking for yet another reason to visit Hawaii? If you happen to be a Lost fan, you should know that most of the show was shot on the stunning island of Oahu. (That said, if you’re a serious Lost fan, chances are you do already know.)

Because so many of the show’s gorgeous, heartrending shots were taken in the wilds of the island, those who want the most bang for their buck might want to take a professional tour of Lost film locales. Bonus: These tour operators can also typically point out where other shows and movies, including Hawaii Five-0, Jumanji 2018, and Jurassic World, were shot.

Recommended: Where to Keep Your Travel Fund

8. Seattle, Washington: Grey’s Anatomy

With 19 seasons in existence and a 20th officially on the way in 2024, Grey’s Anatomy is one of the longest-running and best-loved medical dramas on TV — and it’s set in one of the most beautiful and interesting cities in the Pacific Northwest. Aside from just taking in the iconic skyline that regularly flashes across the screen during transitional scenes in the show (including both Mount Rainier and the Space Needle), Grey’s fans can stroll Seattle’s Queen Anne neighborhood (home to Meredith Grey’s “Intern House”), see Seattle Grace Hospital (actually not a hospital but KOMO Plaza), and take a ferry across Puget Sound (like Meredith and Derek often did).

9. Scranton, Pennsylvania: The Office

No self-respecting fan of The Office could ever forget where the series is set — but have you ever considered actually making a pilgrimage to see the town in person? Only about two and a half hours’ drive from either New York City or Philadelphia, Scranton offers fans the opportunity to visit legendary sites like Poor Richard’s Pub and Alfredo’s Pizza Cafe. The Lackawanna County Visitors Bureau has even produced a self-guided walking tour, complete with an illustrated map, for visitors.

10. Taormina, Sicily: The White Lotus

To enjoy the beauty — but hopefully not all the drama — of the second season of The White Lotus, head to Taormina in Sicily, a small island off Italy’s southern coast. While you may want to spend less on your hotel, you can still check out the one used in the show, the Four Seasons San Domenico Palace, which is a former monastery that dates back to the 1300s. From there, you can take in views of the Ionian Sea, an ancient amphitheater, and Mount Etna. You can also tour some of the small villages visited by Harper and Daphne, such as Taormina and Noto. To lie on the actual beach used in the show, you’ll need to take a jaunt to Cefalu on the other side of the island.

Popular Travel TV Shows

While it’s fun to travel to the sites of your favorite comedies and dramas, there are plenty of travel-focused TV shows that can also provide inspiration for your upcoming trip. For example, the late Anthony Bourdain’s Parts Unknown offers twelve full seasons of off-the-beaten-path destinations to explore (and eat your way through), and themed shows, like Booze Traveler, make it easy to sniff out the best cocktails from around the world. The world is literally your oyster — or your oyster shot!

You might also check out The Reluctant Traveler with Eugene Levy (of Schitt’s Creek fame), which follows the self-admitted non-adventurer while he ice floats in Finland, tackles his lifelong fear of heights on a suspension bridge over the Costa Rican jungle, and much more.

If you’re a fan of Rainn Wilson (Dwight Shrute from The Office), you might enjoy Rainn Wilson and the Geography of Bliss. The docuseries follows the actor, who has openly discussed his battles with depression and anxiety, as he travels the globe searching for the secrets to the happiest societies.

Benefits of Travel Destinations Inspired by TV Shows

Traveling is almost always a broadening experience, giving travelers the opportunity to step into other cultures and ways of living. And when you travel in a way that’s inspired by your favorite TV show, the experience is amplified all the more by your emotional connection to the characters on the show. The process can make you feel like you’re part of something bigger than yourself — and like you’re joining your favorite fictional characters in their own world.

Travel Destinations Inspired by TV Shows: Important Tips and Tricks

As much fun as it can be to travel to your favorite TV-inspired destinations, vacations generally don’t come cheap. Here are some of our best tips for how to travel in luxury on a budget, whether you’ll be touring internationally or domestically.

•   Travel with fellow fans. While traveling solo certainly has its pleasures, coordinating your trip with family or friends who share your love for a particular series can be an effective budget travel option. For example, as a group, you might rent a large Airbnb with a pool. Group travel also allows you to split the cost of food, gas, and accommodations for the trip. If your group is large enough, certain tours and attractions might also offer you a group discount.

•   Book travel in advance — but not too far in advance. When it comes to domestic travel, the best prices are usually available between about five to one months before your travel dates. (International fares, on the other hand, are usually cheaper if you plan out a little further.)

•   Redeem your rewards. Consider using your credit card miles or cash back to cover the cost of all — or part — of your trip. You may have racked up enough points to cover your airfare and/or hotel. If you’re part of a hotel reward program, now may be a good time to cash in on a free night. Maybe you have points from renting a car from the same agency every time. Working those freebies and discounts can really pay off.

•   Be flexible with travel dates. The dates you choose for your TV-inspired trip can significantly impact the total cost. If possible, consider traveling during the shoulder season or off season for that location. If you are heading to London (and Coach Lasso’s world), for example, November and February tend to be the most budget-friendly months.

The Takeaway

Looking to plan your next getaway in 2024? Consider traveling to one of the locales of your favorite TV shows to enhance your experience.

SoFi Travel has teamed up with Expedia to bring even more to your one-stop finance app, helping you book reservations — for flights, hotels, car rentals, and more — all in one place. SoFi Members also have exclusive access to premium savings, with 10% or more off on select hotels. Plus, earn unlimited 3%** cash back rewards when you book with your SoFi Unlimited 2% Credit Card through SoFi Travel.

Wherever you’re going, get there with SoFi Travel.

FAQ

What is the most trendy travel destination?

Top travel trends for 2024 include:

•   Rest and relaxation This year, it’s less about fitting as many international cities into a two-week trip as possible and more about slowing down. Travelers are increasingly looking to travel as a way to invest in their physical and mental health.

•   Backyard travel After a post-pandemic surge in international travel, people are now scaling back their travel ambitions and focusing more on their own backyards — meaning destinations within a reasonable driving distance. The high cost of travel is also a contributing factor.

•   Destination dupes A trend newly popularized on TikTok, travelers are looking to swap overly touristy and pricey places with less pressured, cheaper alternatives — aka “destination dupes.” Dreaming about the Greek isles? You might try Tarpon Springs, Florida. Longing to visit a quaint German town? Helen, Georgia may fit the bill.

Who is the biggest travel influencer?

In today’s hyper-online world, new influencers appear (and drop out) of the popular conversation every day. In 2024, some of the most popular travel influencers include Jack Morris (@doyoutravel), Chris Burkard (@chrisburkard), and Lauren Bullen (@gypsea_lust).

What is an example of a film tourism destination?

One of the most famous film tourism locations is Scotland, where countless Harry Potter fans make a pilgrimage each year to visit the filming locale of their favorite movies. From the craggy Highlands to the stone-lined streets of Edinburgh, fans will easily recognize many scenes from their favorite shots.


Photo credit: iStock/denisav

**Terms, and conditions apply: The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.

When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.


Eligibility: You must be a SoFi registered user.
You must agree to SoFi’s privacy consent agreement.
You must book the travel on SoFi’s Travel Portal reached directly through a link on the SoFi website or mobile application. Travel booked directly on Expedia's website or app, or any other site operated or powered by Expedia is not eligible.
You must pay using your SoFi Credit Card.

SoFi Member Rewards: All terms applicable to the use of SoFi Member Rewards apply. To learn more please see: https://www.sofi.com/rewards/ and Terms applicable to Member Rewards.


Additional Terms: Changes to your bookings will affect the Rewards balance for the purchase. Any canceled bookings or fraud will cause Rewards to be rescinded. Rewards can be delayed by up to 7 business days after a transaction posts on Members’ SoFi Credit Card ledger. SoFi reserves the right to withhold Rewards points for suspected fraud, misuse, or suspicious activities.
©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender. NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org).


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.

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.

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.

SOTL0124001

Read more

How Much a $100,000 Mortgage Will Cost You

Monthly payments on a $100,000 mortgage could range from $600 to around $1,000, depending on the loan’s interest rate, term, and other factors. But it’s also important to think about how much borrowing $100,000 will cost you over time, and to pay attention to all your costs as you move forward with your home purchase. Some costs may be negotiable, and a little comparison shopping could help you save. Read on for a breakdown of what the costs related to borrowing $100,000 might be.

Key Points

•   Monthly payments on a $100,000 mortgage range from $600 to $1,000, influenced by interest rates and loan terms.

•   Closing costs for this mortgage typically range from 3% to 6% of the loan amount.

•   Monthly payments consist of principal repayment and interest charges, calculated on the remaining loan balance.

•   Over time, the proportion of interest to principal in each payment shifts, with more going towards the principal as the loan matures.

•   The total interest paid on a $100,000 mortgage can vary significantly, from about $61,789 to $139,509, depending on the term of the loan.

What Will a $100,000 Mortgage Cost?

There are several different expenses you can expect to encounter when taking out a mortgage. Most of the time, they can be divided into three main categories.

Closing Costs

Closing costs, which you’ll pay upfront, typically include loan processing fees, third-party services such as appraisals and title insurance, and government fees and taxes. You also may choose to pay mortgage points (also known as discount points) on your loan to lower the interest rate. Closing costs can vary significantly, but they generally range from 3% to 6% of the loan amount.

Monthly Payments

Monthly mortgage payments, which are paid over the life of your loan, usually include two primary components:

•   Principal: This is the portion of your mortgage payment that goes directly toward paying back the amount you borrowed.

•   Interest: This is the amount the lender charges you for borrowing money. The amount of interest you pay each month will be calculated by multiplying your interest rate by your remaining loan balance.

Escrow

Some homebuyers may also have a third amount, called escrow, factored into their closing costs and/or monthly payments. Lenders often collect and hold money in an escrow account to ensure critical bills like homeowners insurance and property taxes are paid on time.


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

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


What Would the Monthly Payment Be for a $100,000 Mortgage

We’ll keep things simple and eliminate the costs associated with an escrow account to get an idea of what a $100,000 mortgage payment might look like each month.

Let’s say you wanted to purchase a home for $120,000, and you had $20,000 for a down payment. If your lender offered you a 7% annual percentage rate (APR) on a 15-year loan for $100,000, you could expect your monthly payment — principal and interest — to be about $898. If you had a 30-year loan with a 7% APR, a $100,000 mortgage payment could be about $665 per month.

Here are some more examples that show the difference between a 15-year loan vs. a 30-year loan, using a mortgage calculator:

APR

Payment with 15-year Loan

Payment with 30-year Loan

5.5% $817 $817
6.5% $871 $632
7.5% $927 $699

How Much Interest Will You Pay on a $100,000 Mortgage?

The interest rate your lender offers can make a big difference in the overall cost of your mortgage. So can the mortgage term you choose. On a $100,000 mortgage at a 7% APR, for example, your total interest costs could range from $61,789 to $139,509, depending on the length of the loan you choose (15 vs. 30 years).

Stretching your mortgage payments over a longer term can lower your monthly payment, but you can expect to pay more for the loan overall. If you start out with a 30-year term and find your budget can handle larger payments, you can always consider a mortgage refinance or a recast to adjust your payment amount and schedule.

“Really look at your budget and work your way backwards,” explains Brian Walsh, CFP® at SoFi, on planning for a home mortgage.

Recommended: Best Affordable Places to Live in the U.S.

How Does Amortization Work on a $100,000 Mortgage?

Though your payment will remain the same every month (if you have a fixed-rate loan, you can expect the amount you’ll pay each month toward interest vs. principal to change over the life of your home loan. In the first years, the majority of your payment will go toward interest. But as your balance goes down, more of your payment will go toward principal.

Your lender should provide you with a repayment schedule, or mortgage amortization schedule, that shows you how the proportions will change over the length of your loan.

Here’s what the amortization schedules for a $100,000 mortgage with 30- and 15-year terms might look like. (Keep in mind that your payments may include other costs besides principal and interest.)

Amortization Schedule, 30-Year Loan at 7% APR

Year Amount Paid Interest Paid Principal Paid Remaining Balance
1 $7,983.63 $6,967.82 $1,015.81 $98,984.19
2 $7,983.63 $6,894.39 $1,089.24 $97,894.95
3 $7,983.63 $6,815.65 $1,167.98 $96,726.96
4 $7,983.63 $6,731.21 $1,252.42 $95,474.55
5 $7,983.63 $6,640.67 $1,342.96 $94,131.59
6 $7,983.63 $6,543.59 $1,440.04 $92,691.55
7 $7,983.63 $6,439.49 $1,544.14 $91,147.41
8 $7,983.63 $6,327.87 $1,655.76 $89,491.65
9 $7,983.63 $6,208.17 $1,775.46 $87,716.19
10 $7,983.63 $6,079.82 $1,903.81 $85,812.38
11 $7,983.63 $5,942.20 $2,041.43 $83,770.95
12 $7,983.63 $5,794.62 $2,189.01 $81,581.94
13 $7,983.63 $5,636.38 $2,347.25 $79,234.69
14 $7,983.63 $5,466.69 $2,516.94 $76,717.75
15 $7,983.63 $5,284.74 $2,698.89 $74,018.87
16 $7,983.63 $5,089.64 $2,893.99 $71,124.88
17 $7,983.63 $4,880.44 $3,103.19 $68,021.68
18 $7,983.63 $4,656.11 $3,327.52 $64,694.16
19 $7,983.63 $4,415.56 $3,568.07 $61,126.09
20 $7,983.63 $4,157.62 $3,826.01 $57,300.08
21 $7,983.63 $3,881.04 $4,102.59 $53,197.49
22 $7,983.63 $3,584.46 $4,399.17 $48,798.32
23 $7,983.63 $3,266.45 $4,717.18 $44,081.14
24 $7,983.63 $2,925.44 $5,058.19 $39,022.95
25 $7,983.63 $2,559.78 $5,423.85 $33,599.10
26 $7,983.63 $2,167.69 $5,815.94 $27,783.17
27 $7,983.63 $1,747.26 $6,236.37 $21,546.80
28 $7,983.63 $1,296.43 $6,687.20 $14,859.60
29 $7,983.63 $813.01 $7,170.62 $7,688.98
30 $7,983.63 $294.65 $7,688.98 $0

Amortization Schedule, 15-Year Loan at 7% APR

Year Amount Paid Interest Paid Principal Paid Remaining Balance
1 $10,785.94 $6,876.14 $3,909.80 $96,090.20
2 $10,785.94 $6,593.50 $4,192.44 $91,897.76
3 $10,785.94 $6,290.43 $4,495.51 $87,402.26
4 $10,785.94 $5,965.45 $4,820.49 $82,581.77
5 $10,785.94 $5,616.98 $5,168.96 $77,412.80
6 $10,785.94 $5,243.31 $5,542.63 $71,870.17
7 $10,785.94 $4,842.63 $5,943.31 $65,926.87
8 $10,785.94 $4,412.99 $6,372.95 $59,553.92
9 $10,785.94 $3,952.29 $6,833.65 $52,720.27
10 $10,785.94 $3,458.29 $7,327.65 $45,392.62
11 $10,785.94 $2,928.57 $7,857.37 $37,535.25
12 $10,785.94 $2,360.56 $8,425.38 $29,109.87
13 $10,785.94 $1,751.49 $9,034.45 $20,075.42
14 $10,785.94 $1,098.39 $9,687.55 $10,387.87
15 $10,785.94 $398.07 $10,387.87 $0

Where Can You Get a $100,000 Mortgage?

Homebuyers have options when they’re deciding where to go for a loan, including online banks and lenders, traditional banks, and credit unions. Because lenders’ rates and terms may vary, it can be a good idea to shop around for a mortgage that’s a good fit for your needs and goals.

Before you start getting mortgage estimates, you may want to sit down and figure out the different types of mortgages you’re interested in and what you might qualify for. Would you be better off with a conventional mortgage or a government-backed loan? Are you looking for a fixed or adjustable mortgage rate? Do you want a 15-, 20-, or 30-year mortgage? Some lenders specialize in certain kinds of loans, such as government-backed loans. And some loans may have less stringent standards for down payment amounts or a borrower’s credit score. Once you start comparison shopping, you may want to read some online reviews of the lenders you’re considering.


💡 Quick Tip: Generally, the lower your debt-to-income ratio, the better loan terms you’ll be offered. One way to improve your ratio is to increase your income (hello, side hustle!). Another way is to consolidate your debt and lower your monthly debt payments.

How to Get a $100,000 Mortgage

Feeling a little overwhelmed by the whole home-buying and mortgage process? Breaking it down into a few manageable steps may make things a little less daunting. If you’ve never bought a home before, spend some time studying up with a first-time homebuyer guide.

First, Figure Out What You Can Afford

Looking at your income, debts, monthly spending, and how much you’ve saved for a down payment can be a good place to start. This will help you determine how much of a down payment you can handle and how much house you can afford.

Look at Different Loans and Lenders

Once you know what you can afford, you can start looking for the loan type, interest rate, loan term, and lender that meet your needs.

Get Preapproved

Once you’ve decided on loan and lender, it can be a good idea to go through the preapproval process. Getting a letter from your lender that says you’re preapproved for a certain loan amount lets sellers know you’re a serious buyer (and can come in handy in a bidding war.)

Time to Go House Hunting

Once you’ve done your homework, you can search for and make an offer on a house. And since you already know how much you can afford, you can target homes in that range.

Submit a Full Mortgage Application

When you’re ready to seal the deal, be prepared to give your lender more financial information and documentation for a formal loan application.

Prepare for Closing

While you’re waiting for a final loan approval and a closing date, you can shop for homeowners insurance, get a home inspection, and make sure you have all the money you need for your down payment and closing costs.

Take Ownership of Your New Home

At the closing you can sign all the necessary paperwork, hand over the funds needed to make the purchase, and—congratulations!–get the keys to your new home.

How Much House Can You Afford Quiz

Recommended: 2024 Home Loan Help Center

The Takeaway

Researching the different expenses you might have to pay when taking out a $100,000 mortgage can help you stick to your budget and avoid unpleasant surprises. The choices you make about the type of loan you get, the interest rate, loan term, and other costs, will all affect how much you pay every month — and over the length of the loan.

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 is a $100,000 mortgage a month?

The monthly payment for a $100,000 mortgage could range from $600 to around $1,000, depending on several factors, including the interest rate and loan term.

How much income is required for a $100,000 mortgage?

You’ll probably need to earn around $40,000 a year (before taxes) to get a $100,000 mortgage. But lenders will look at several factors, besides your income, to determine if you can afford a $100,000 mortgage. You can expect to be asked about your debt, credit history, assets, and the down payment you plan to make.

How much is a down payment on a $100,000 mortgage?

If you wanted to make a 20% down payment (thereby avoiding paying for mortgage insurance), you would put down around $25,000 on a $100,000 mortgage. But a down payment could be as low as 3% in some cases (around $4,000), and may vary depending on the price of the house you choose and the type of loan you get.

Can I afford a $100,000 mortgage with a $70,000 salary?

As long as all your monthly debt payments combined — including your house payment, credit cards, student loans, and car payments — are less than $2,100, you may be able to afford a $100,000 mortgage on a $70,000 salary.


Photo credit: iStock/Hispanolistic

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.


*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.

SOHL0124070

Read more
TLS 1.2 Encrypted
Equal Housing Lender