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On a salary of $100,000 per year, as long as you have minimal debt, you can afford a house priced at around $311,000 with a monthly payment of $2,333. This number assumes a 6.5% interest rate and a down payment of around $30,000.

The 28/36 rule is often used as a guide when deciding how much house you can afford. The rule stipulates that you should not spend more than 28 percent of your salary on overall housing costs and no more than 36 percent on housing costs and your debt. On a salary of $100K with debts of about $250 per month, a house costing $311,000 just fits in your budget.

However, how much home you can afford depends on other factors also, such as where you intend to live and how much you have saved as a down payment.

This article looks at how all of these factors affect your home purchase and gives some examples of how much home you can realistically afford on a salary of $100,000.

What Kind of House Can I Afford With $100K a Year?

Another rule of thumb often applied when buying a home is to not spend more than three times your annual income on a home. If you earn $100,000 a year, that would be $300,000.

A salary of $100,000 is well above the national median income (according to Census data, the national median income was $74,580 in 2022). That puts you in a good position if you want to buy a home, particularly if the cost of living is low in the area that you are targeting. If you have substantial savings for a down payment and little debt, you’re even better positioned. Debt is important because lenders look at how much debt you have when they qualify you for a mortgage.

Your Debt-to-Income Ratio

Your debt-to-income (DTI) ratio is the amount of income you receive relative to the amount of payments you make each month to cover your debt. You’ll get better loan terms, and your monthly mortgage loan payments will be less, if you have less debt.

That’s why many experts also recommend the 28/36 rule. So, if you earn $100K, your housing costs should be less than $28,000, $2,333 a month, and your debt and housing costs should not exceed $36,000, or $3,000 a month.

Your Down Payment

Unless you qualify for a zero-down USDA or VA loan, most lenders will expect a down payment of between 3% and 20%. The more you put down, the more house you can afford, but as you think about your down payment amount, make sure you reserve funds for closing costs, moving costs, and an emergency fund for unexpected expenses.

Home Affordability

Homes are more affordable in certain areas. Some areas have a higher cost of living and higher property taxes.

Your credit score will also affect how much home you can afford. If you have a high credit score, you will qualify for a lower interest rate loan. If you pay less interest, you can borrow more and still meet your monthly payments.

Depending on where you want to live, the housing market might dictate how big a home you can afford. House prices are affected by the economic conditions, and low unemployment rates and healthy economic growth gives buyers more purchasing power. If buyers have more purchasing power, they can afford bigger loans, and this will push up house prices.


💡 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.

How to Afford More House with Down Payment Assistance

Some people, such as first-time buyers or certain professionals like nurses and teachers, can qualify for down payment assistance from federal, state, and local government, private entities, and charitable organizations. Assistance might be in the form of a low-rate loan, cash grant, tax credit, or a reduced interest rate.

Applying for down payment assistance can add weeks or months to your home buying timeline, but for more information, the U.S. Department of Housing and Urban Development (HUD) keeps a list of programs listed by state, county, and city.

Here are typical down payment amounts for various types of mortgages.

•   Conventional mortgages require a 3% down payment for first-time buyers

•   FHA mortgages require 3.5% down

•   VA mortgages require 0% down

•   USDA: These zero down payment loans serve low-income borrowers in rural areas.

Home Affordability Examples

Let’s take a look at some hypothetical examples for those wondering, “If I make $100K how much home can I afford?” These examples assume an interest rate of 6.5% and average property taxes.

Example #1: Low Down Payment and Significant Debt

Gross annual income: $100,000
Down payment: $10,000
Monthly debt: $1000

Home budget: $238,441

Monthly mortgage payment: $2,000

Payment breakdown:

•   Principal and interest: $1,444

•   Property taxes: $208

•   Private mortgage insurance: $264

•   Homeowner’s insurance: $83

Example #2: Bigger Down Payment, Less Debt

Gross annual income: $100,000
Down payment: $40,000
Monthly debt: $300

Home budget: $333,212

Monthly mortgage payment: $2,333

Payment breakdown:

•   Principal and interest: $1,853

•   Property taxes: $208

•   Private mortgage insurance: $188

•   Homeowner’s insurance: $83

How to Calculate How Much House You Can Afford

You need a budget to find out how much house you can afford. Keeping a budget will show you how much you are spending each month versus how much income you have. Whatever you have leftover after paying essentials like food, clothing, and utilities is how much you can afford to spend on housing.

You can also use a mortgage calculator to help you. Just plug in your own numbers to find out what your monthly payments would be.


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

How Your Monthly Payment Affects Your Price Range

The more you can afford to pay each month for your mortgage and other housing expenses, the more house you can afford. However if you have significant debt payments each month, or you have a poor credit score that results in a higher interest rate for your loan, that will reduce the amount of loan you can afford and the price range.

Types of Home Loans Available to $100K Households

Four types of loans are the most common. These are conventional loans, FHA loans, USDA, and VA loans.

Conventional loans typically require a credit score of 620 or more, but the down payment can be as low as 3 percent. Remember that a lower down payment means higher monthly payments because you will have to borrow more.

FHA loans. With an FHA loan, home buyers with a credit score over 580 can borrow up to 96.5% of a home’s value. Home buyers with a lower credit score, between 500 to 579, can still qualify for a loan as long as they have a 10% down payment.

USDA: USDA loans are zero down payment financing for low-income borrowers in designated rural areas.

VA: VA loans also require no down payment and are available to qualified military service members, veterans, and their spouses.

The Takeaway

If you are looking to buy a home and would like a more realistic idea of what you can afford, first find out how much you are spending on necessities like food, clothing, transportation, and, most importantly, debt. What you have leftover is how much you can spend each month on housing expenses.

Once you have a grasp on your finances, you can use an affordability calculator to see how much of a house you can afford. The size of home that the amount will buy depends on the local housing market and the cost of living where you want to live.

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

Is $100K a good salary for a single person?

A salary of $100k is above the national median income (according to Census data, the national median income was $74,580 in 2022). This is a good salary, but you still might struggle to buy a home in areas with a high cost of living. The larger down payment you have, and the better your credit score, the bigger house you can buy.

What is a comfortable income for a single person?

A comfortable income for a single person is dependent upon where that person lives. The findings from a study using data from the Bureau of Labor Statistics to calculate the cost of necessities to determine a living wage shows wide variance existing among states. According to the study, Hawaii is the most expensive state, and singles require an annual salary of $112,411 to live comfortably. In Mississippi, you can live comfortably on $45,906 a year.

What is a liveable wage in 2023?

A liveable wage will vary depending on where you live. However, the Massachusetts Institute of Technology determined that $104,07 per year was a liveable wage before taxes in 2022. This was for a family of four with two working adults and two children.

What salary is considered rich for a single person?

According to Internal Revenue Service data, an income of $540,009 per year puts a person in the top 1% earnings category.

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Photo credit: iStock/Prostock-Studio

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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.

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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In the ever-evolving landscape of real estate, the U.S. foreclosure market often unveils key trends that will shape the future of home ownership. According to property data provider ATTOM , the number of housing units with foreclosure filings in March was 32,878, a drop of less than 1% from the previous month and a 10% decline from the previous year. Rob Barber, CEO of ATTOM, highlights that this ongoing “persistently hot” housing market is likely due to sizable homeowner equity.

Foreclosure starts increased nationwide by 2%, with notable spikes in states like New Hampshire, Illinois, and Florida. Moreover, while there was a 7% increase in bank repossessions from the previous quarter, there’s a notable 20% decline compared to a year ago, indicating some stabilization in the REO (Real Estate Owned) sector. The average time to foreclose showed a slight increase from the previous quarter, but continues a downward trend observed since mid-2020, with states like Louisiana, Hawaii, and New York having longer foreclosure timelines, contrasting with states like Montana, Virginia, and Texas, which boast shorter timelines. Borrowers should stay up to date on their mortgage payments and work closely with their lenders to explore options for assistance if needed.

Read on for the foreclosure rates in March 2024 – plus the five counties, or county equivalents, with the highest rates within those states.

50 State Foreclosure Rates

As previously noted, foreclosure rates saw a negligible drop compared to last month and to last year. Read on for the March foreclosure rates for all 50 states — plus the District of Columbia — beginning with the state that had the lowest rate of foreclosure filings per housing unit.

District of Columbia

Ranking in population between Vermont and Alaska, the country’s second and third least populous states, Washington, D.C. observed 167 foreclosures in March, up about 17% from the previous month. With a total of 350,372 housing units, the foreclosure rate of the nation’s capital was one in every 2,098 households, putting it above the state of Illinois (#1).

50. Vermont

In 49th place for population, the Green Mountain State ranked 50th for its foreclosure rate in March. Of the state’s 335,138 housing units, 11 homes went into foreclosure at a rate of one in every 30,467 households. Only four counties in the state saw foreclosures. They were (from highest to lowest): Rutland, Windsor, Washington, and Chittenden.

49. Montana

Listed as 44th in population, the Treasure State rated 49th again for its foreclosure rate this month. With 24 foreclosures out of 517,430 housing units, Montana’s foreclosure rate was one in every 21,560 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Wheatland, Chouteau, Deer Lodge, Richland, and Carbon.

48. South Dakota

The Mount Rushmore State nabbed the 48th spot once more for its foreclosure rate in March. Having 393,150 total housing units, the fifth-least populous state had a foreclosure rate of one in every 17,870 households with 22 foreclosures. The counties with the most foreclosures per housing unit were (from highest to lowest): Aurora, Codington, Minnehaha, Brown, and Meade.

47. West Virginia

Ranked 39th in population, the Mountain State claimed the 47th spot for the second month in a row. It has a total of 859,142 housing units, of which 58 went into foreclosure. This means that the foreclosure rate was one in every 14,813 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Hancock, Tyler, Fayette, Berkeley, and Cabell.

46. Oregon

The 27th most populous state ranked 46th for highest foreclosure rate in March. Of the Pacific Wonderland’s 1,818,599 homes, 124 went into foreclosure, making for a foreclosure rate of one in every 14,666 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Jefferson, Clatsop, Douglas, Clackamas, and Coos.

45. Kansas

The Sunflower State ranked 45th for highest foreclosure rate this month. With 1,278,548 homes and a total of 100 housing units going into foreclosure, the 35th most populous state’s foreclosure rate was one in every 12,785 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Morton, Clark, Logan, Kearny, and Bourbon.

44. Rhode Island

The eighth-least populous state placed 44th for highest foreclosure rate in March. A total of 38 homes went into foreclosure out of 483,053 total housing units, making the foreclosure rate for the Ocean State one in every 12,712 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Kent, Bristol, Washington, Providence, and Newport.

43. New Mexico

The 36th most populous state claimed the 43rd spot for highest foreclosure rate this month. Of the Land of Enchantment’s 943,149 homes, 82 went into foreclosure, making for a foreclosure rate of one in every 11,502 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Chaves, Eddy, Socorro, Lincoln, and Sandoval.

42. Mississippi

Ranked 34th in population, the Magnolia State experienced 121 foreclosures out of 1,324,992 total housing units. This puts the foreclosure rate at one in every 10,950 homes and into the 42nd spot this month. The counties with the most foreclosures per housing unit were (from highest to lowest): Grenada, Simpson, Union, Copiah, and Lee.

41. Washington

Sorted as 13th in population, the Evergreen State ranked 41st for its foreclosure rate in March. Of its 3,216,243 housing units, 323 went into foreclosure, making the state’s foreclosure rate one in every 9,957 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Pacific, Lewis, Pierce, Cowlitz, and Grays Harbor.

Recommended: Tips on Buying a Foreclosed Home

40. New Hampshire

The Granite State, and the 41st most populous state in the U.S., ranked 40th for highest foreclosure rate. New Hampshire saw 66 of its 640,335 homes go into foreclosure, making for a foreclosure rate of one in every 9,702 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Belknap, Coos, Sullivan, Merrimack, and Carroll.

39. Wisconsin

With 326 foreclosures out of 2,734,511 total housing units, America’s Dairyland and the 20th most populous state secured the 39th spot with a foreclosure rate of one in every 8,388 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Juneau, Iron, Rusk, Taylor, and Trempealeau.

38. Wyoming

The country’s least populous state claimed the 38th spot for highest foreclosure rate this month. With 273,291 housing units, of which 33 went into foreclosure, the Equality State’s foreclosure rate was one in every 8,282 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Carbon, Sweetwater, Campbell, Sublette, and Big Horn.

37. North Dakota

The Peace Garden State’s foreclosure rate was one in every 8,275 homes. This puts the fourth-least populous state — with 372,376 housing units and 45 foreclosures — into 37th place. The counties with the most foreclosures per housing unit were (from highest to lowest): Pembina, Hettinger, Kidder, Grant, and Bottineau.

36. Missouri

Coming in at 19th in population, the Show-Me State took the 36th spot for highest foreclosure rate this month. Of its 2,795,030 homes, 348 went into foreclosure, making for a foreclosure rate of one in every 8,032 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Caldwell, Mississippi, Laclede, Dunklin, and Barry.

35. Virginia

With 455 homes going into foreclosure, the 12th most populous state ranked 35th for highest foreclosure rate in March. Having 3,625,285 total housing units, the Old Dominion saw a foreclosure rate of one in every 7,968 households. The counties and independent city with the most foreclosures per housing unit were (from highest to lowest): Franklin City, Lexington City, King And Queen, Dickenson, and Halifax.

34. Alaska

The Last Frontier saw 40 foreclosures this month, making the foreclosure rate one in every 7,938 homes. This caused the third-least populous state, with a total of 317,529 housing units, to claim the 34th spot. The boroughs with the most foreclosures per housing unit were (from highest to lowest): Anchorage, Matanuska-Susitna, Kenai Peninsula, Juneau, and Fairbanks North Star.

33. Nebraska

Ranking 37th in population, the Cornhusker State placed 33rd in March with a foreclosure rate of one in every 7,640 homes. With a total of 848,023 housing units, the state had 111 foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Garfield, Nemaha, Scotts Bluff, Webster, and Sherman.

32. Hawaii

The Paradise of the Pacific, and the 40th most populous state, came in 32nd for highest foreclosure rate. Of its 560,873 homes, 80 went into foreclosure, making for a foreclosure rate of one in every 7,011 households. Only four of the five counties in the state saw foreclosures. They were (from highest to lowest): Hawaii, Kauai, Honolulu, and Maui.

31. Tennessee

Ranked 16th in population, the Volunteer State endured 442 foreclosures out of its 3,050,850 housing units. This puts the foreclosure rate at one in every 6,902 households and in 31st place for the second month in a row. The counties with the most foreclosures per housing unit were (from highest to lowest): Lake, Hardeman, Houston, Meigs, and Hardin.

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30. Michigan

Ranked 10th in population, the Wolverine State secured the 30th spot with a foreclosure rate of one in every 6,706 homes. With a total of 4,580,447 housing units, the state had 683 foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Clare, Shiawassee, Gratiot, St. Joseph, and Jackson.

29. Kentucky

With a total of 1,999,202 housing units, the Bluegrass State saw 301 homes go into foreclosure, thus landing in 29th place in March. This puts the foreclosure rate for the 29th most populous state at one in every 6,642 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Powell, Greenup, Clinton, Bath, and Jefferson.

28. Idaho

Ranked 38th in population, the Gem State received the 28th spot due to its 119 housing units that went into foreclosure this month. With 758,877 total housing units, the state’s foreclosure rate was one in every 6,377 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Custer, Bingham, Bonneville, Caribou, and Bonner.

27. Minnesota

Ranked 22nd for most populous state, the Land of 10,000 Lakes obtained the 27th spot for highest foreclosure rate in March. It has 2,493,956 housing units, of which 396 went into foreclosure, making the state’s foreclosure rate one in every 6,298 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Mille Lacs, Lac Qui Parle, McLeod, Redwood, and Isanti.

26. Colorado

The 21st most populous state ranked 26th for highest foreclosure rate this month. Of the Centennial State’s 2,500,095 housing units, 401 went into foreclosure, making for a foreclosure rate of one in every 6,235 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Phillips, Logan, Pueblo, Morgan, and Elbert.

25. Oklahoma

The Sooners State landed the 25th spot in March. With housing units totaling 1,751,802, the 28th most populous state saw 285 homes go into foreclosure at a rate of one in every 6,147 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Nowata, Caddo, Garfield, Custer, and Murray.

24. Louisiana

Sorted as 25th in population, the Pelican State placed 24th for highest foreclosure rate this month. Louisiana had a foreclosure rate of one in every 5,747 households, with 362 out of 2,080,371 homes going into foreclosure. The parishes with the most foreclosures per housing unit were (from highest to lowest): Richland, Terrebonne, Plaquemines, Iberville, and West Baton Rouge.

23. North Carolina

The ninth-most populous state claimed 23rd place for highest foreclosure rate. Out of 4,739,881 homes, 863 went into foreclosure. This puts the Tar Heel State’s foreclosure rate at one in every 5,492 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Perquimans, Gates, Anson, Northampton, and Vance.

22. Alabama

Listed as 24th in population, the Yellowhammer State came in 22nd for highest foreclosure rate this month. Of its 2,296,920 homes, 428 went into foreclosure, making for a foreclosure rate of one in every 5,367 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Hale, Calhoun, Mobile, Jefferson, and Walker.

21. Arizona

Sorted as 14th in population, the Grand Canyon State withstood 596 foreclosures out of its total 3,097,768 housing units. This puts the foreclosure rate at one in every 5,198 homes and into the 21st spot in March. The counties with the most foreclosures per housing unit were (from highest to lowest): Graham, Navajo, Yuma, Pinal, and La Paz.

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20. Arkansas

Listed as the 33rd most populous state, the Land of Opportunity ranked 20th for highest foreclosure rate this month. The state contains 1,371,709 housing units, of which 264 went into foreclosure, making its latest foreclosure rate one in every 5,196 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Prairie, Arkansas, Desha, Hot Spring, and Union.

19. Maine

Ranked 42nd in population, the Pine Tree State placed 19th for highest foreclosure rate in March. With a total of 741,803 housing units, Maine saw 143 foreclosures for a foreclosure rate of one in every 5,187 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Aroostook, Androscoggin, Oxford, Waldo, and Penobscot.

18. Georgia

Ranked eighth in population, the Peach State took the 18th spot for highest foreclosure rate this month. Of its 4,426,780 homes, 910 were foreclosed on. This puts the state’s foreclosure rate at one in every 4,865 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Lanier, Crawford, Henry, Haralson, and Johnson.

17. Utah

The Beehive State placed 17th for highest foreclosure rate in March. Of its 1,162,654 housing units, 245 homes went into foreclosure, making the 17th most populous state’s foreclosure rate one in every 4,746 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Emery, Tooele, Wasatch, Juab, and Washington.

16. Pennsylvania

The Keystone State had the 16th highest foreclosure rate for the second month in a row. The fifth-most populous state saw 1,266 homes out of 5,753,908 total housing units go into foreclosure, making the state’s foreclosure rate one in every 4,545 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Philadelphia, Delaware, Wayne, Fayette, and Bucks.

15. Iowa

The Hawkeye State had the 15th highest foreclosure rate in March. With 325 out of 1,417,064 homes going into foreclosure, the 31st most populous state’s foreclosure rate was one in every 4,360 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Audubon, Keokuk, Monroe, Clinton, and Jasper.

14. Texas

The Lone Star State withstood 2,885 foreclosures this month. With a foreclosure rate of one in every 4,040 households, this puts the second-most populous state in the U.S., with a whopping 11,654,971 housing units, into 14th place. The counties with the most foreclosures per housing unit were (from highest to lowest): Liberty, Madison, Atascosa, Jones, and Kaufman.

13. New York

With 2,144 out of a total 8,494,452 housing units going into foreclosure, the Empire State claimed the 13th spot in March. The fourth-most populous state’s foreclosure rate was one in every 3,962 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Orange, Greene, Suffolk, Nassau, and Rensselaer.

12. Massachusetts

The 15th most populous state ranked 12th for highest foreclosure rate this month. Of the Bay State’s 2,999,314 housing units, 775 went into foreclosure, making for a foreclosure rate of one in every 3,870 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Hampden, Plymouth, Worcester, Berkshire, and Essex.

11. California

The country’s most populous state ranked 11th for highest foreclosure rate in March. Of its impressive 14,424,442 housing units, 3,975 went into foreclosure, making the Golden State’s foreclosure rate one in every 3,629 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Lake, Mendocino, Madera, Kern, and Shasta.

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10. Nevada

Ranked 32nd in population, the Silver State took the 10th spot for highest foreclosure rate this month. With one in every 3,181 homes going into foreclosure, and a total of 1,288,357 housing units, the state had 405 foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Lyon, White Pine, Clark, Lander, and Nye.

9. Ohio

The Buckeye State placed ninth in March with a foreclosure rate of one in every 3,167 homes. With a sum of 5,251,209 housing units, the seventh-most populous state had a total of 1,658 filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Knox, Cuyahoga, Shelby, Preble, and Defiance.

8. Indiana

The 17th largest state by population, the Crossroads of America landed the eighth spot this month with a foreclosure rate of one in every 3,129 homes. Of its 2,931,710 housing units, 937 went into foreclosure. The counties with the most foreclosures per housing unit were (from highest to lowest): Scott, Perry, Clinton, Howard, and Sullivan.

7. Maryland

Ranked 18th for most populous state, America in Miniature took seventh place for highest foreclosure rate in March. With a total of 2,531,075 housing units, of which 815 went into foreclosure, the state’s foreclosure rate was one in every 3,106 households. The counties and independent city with the most foreclosures per housing unit were (from highest to lowest): Kent, Dorchester, Prince George’s County, Baltimore City, and Calvert.

6. Delaware

The sixth-least populous state in the country, the Small Wonder nabbed sixth place this month. With one in every 3,051 homes going into foreclosure and a total of 451,556 housing units, the state saw 148 foreclosures filed. Having only three counties in the state, the most foreclosures per housing unit were (from highest to lowest): Kent, New Castle, and Sussex.

5. South Carolina

The 23rd most populous state had the fifth highest foreclosure rate in March with one in every 2,867 homes going into foreclosure. Of the Palmetto State’s 2,362,253 housing units, 824 were foreclosed on this month. The counties with the most foreclosures per housing unit were (from highest to lowest): Fairfield, Hampton, Dorchester, Darlington, and Spartanburg.

4. Florida

The third-most populous state in the country has a total of 9,915,957 housing units, of which 3,568 went into foreclosure. This puts the Sunshine State’s foreclosure rate at one in every 2,779 homes and into fourth place this month. The counties with the most foreclosures per housing unit were (from highest to lowest): Hernando, Citrus, Wakulla, Osceola, and Charlotte.

3. New Jersey

With a foreclosure rate of one in every 2,638 homes, the Garden State ranked third for highest foreclosure rate this month. The 11th most populous state contains 3,756,340 housing units, of which 1,424 went into foreclosure. The counties with the most foreclosures per housing unit were (from highest to lowest): Cumberland, Warren, Sussex, Salem, and Atlantic.

2. Connecticut

With 587 of its 1,531,332 homes going into foreclosure, the Constitution State had the second highest foreclosure rate at one in every 2,609 households. In this 29th most populous state, the counties that had the most foreclosures per housing unit were (from highest to lowest): Windham, New Haven, New London, Tolland, and Fairfield.

1. Illinois

The Land of Lincoln had the highest foreclosure rate in all 50 states in March. Of its 5,427,357 homes, 2,130 went into foreclosure, making the sixth-most populous state’s foreclosure rate one in every 2,548 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Gallatin, Jasper, Whiteside, Schuyler, and Massac.

The Takeaway

Of all 50 states, California had the most foreclosure filings (3,975), and Vermont had the least (11). As for the states with the highest foreclosure rates, Illinois, Connecticut, and New Jersey took the top three spots, respectively.

Two regions – the Great Lakes and the Mideast – tied for having the largest presence among the 10 states that ranked the highest for foreclosure rates. The states in the Great Lakes region were (from highest to lowest): Illinois, Indiana, and Ohio. The states in the Mideast region were (from highest to lowest): New Jersey, Delaware, and Maryland.

Four regions – the Far West, Southeast, Plains, and New England – tied for having the largest presence among the 10 states that ranked the lowest for foreclosure rates. The states in the Far West region were (from highest to lowest): Washington and Oregon. The states in the Southeast region were (from highest to lowest): Mississippi and West Virginia. The states in the Plains region were (from highest to lowest): Kansas and South Dakota. Finally, the states in the New England region were (from highest to lowest): Rhode Island and Vermont.

Discover more about home loans at SoFi.

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

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 for more information.

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.

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When you pay off your mortgage, you may have some paperwork and account switching (such as property taxes) to take care of. And you may look forward to greater cash flow.

But is paying off a mortgage always the right move? In some cases, a person who is about to pay off a mortgage may want to consider a couple of options that could make more sense for their particular financial situation.

Learn more about the payoff path and alternatives here.

Pros and Cons of Paying Off Your Mortgage

Paying off your mortgage is a fantastic milestone to reach, but it’s not without trade-offs. Here are a few considerations to help you make the best decision for your situation.

Pros of Paying Off a Mortgage	Cons of Paying Off a Mortgage
No monthly payment	May lose tax deduction
No more interest paid to the lender	Your cash is all tied up in your home’s equity
More cash in your pocket each month	If you pay extra to pay off your home, you may miss out on investment strategies
You’ll need less income in retirement	Lost opportunity costs for other uses for your money
Greatly reduced risk of foreclosure	No tax deduction for mortgage interest, if you’re among the few who still take the deduction

💡 Quick Tip: Thinking of using a mortgage broker? That person will try to help you save money by finding the best loan offers you are eligible for. But if you deal directly with an online mortgage lender, you won’t have to pay a mortgage broker’s commission, which is usually based on the mortgage amount.

What Happens When You Pay Off Your Mortgage?

Here’s how mortgage payoff works:

•   To get the amount you need to pay off your mortgage, the first thing you need to do is request a mortgage payoff letter. If you pay the amount on your last statement, you won’t have the right amount. A mortgage payoff letter will include the appropriate fees and the amount of interest through the day you’re planning to pay the loan off.

•   Know that the payoff letter is only good for a set amount of time, and make sure to get your payment in on time.

•   Follow the instructions you’re given about where and how to submit the payment.

•   Once you’ve sent the payoff amount, your mortgage lender is responsible for sending you and the county recorder documentation to release the mortgage and lien on your home.

•   You should be sent any funds remaining in escrow.

•   You will want to contact your insurance company about this change if your insurance was paid along with your mortgage payment and have the bills switched over to you directly.

•   If your property taxes were paid as part of your mortgage, you will want to contact your local tax collector about shifting those bills to you as well.

What Documents Do You Get After Paying Off a Mortgage?

After paying off your mortgage, you should receive (or have access to) documents proving you paid off the mortgage and no longer have a lien attached to your home. These include:

•   Satisfaction or release of mortgage. This document will be filed with the county recorder (or other applicable recording agency). It states that the mortgage has been satisfied and the lien released.

•   A canceled promissory note. When you closed on your home, one of the documents you signed was called a promissory note. Now that the mortgage has been satisfied, you may receive this document back with a “canceled” or “paid in full,” though it’s also possible you may have to call and request the document.

•   A statement on the paid-off loan balance. Your lender should send you a statement showing that your loan has been paid in full.

What Should You Do After Paying Off Your Mortgage?

After you pay off your mortgage, you’ll need to take care of a few housekeeping items (a couple are mentioned above).

•   Close your escrow account. Since you’re no longer sending a mortgage payment to a mortgage servicer, you’ll need to take care of the items in your escrow account, primarily your taxes and homeowners insurance.

•   Contact your county recorder’s office to double-check that the mortgage satisfaction paperwork has been filed. Once that has been filed, you will have a clear title on the property.

•   Make plans for the extra money. Whether you want to make a bigger push in your retirement account, enlarge your emergency fund, or pay off other debts, you now likely have more cash to do it with. If you don’t make plans for the extra money, it might just evaporate.

Recommended: 2024 Home Loan Help Center

Is Prepaying a Good Idea?

Generally, paying off your mortgage early is a great idea. It reduces the principal, which in turn reduces the amount you’ll pay in interest over the life of your loan. Still, there are reasons that some homeowners consider not paying their mortgage off early.

Most lenders do not charge a prepayment penalty, but home loans signed before January 10, 2014, may include one. Nonconforming mortgage loans signed after that date may have a prepayment penalty that applies within the first three years of repayment. (The different types of mortgage loans include conforming and nonconforming conventional mortgages.)

The best way to find out if prepayment is subject to a penalty is to call your mortgage servicer. The terms of your mortgage paperwork should also outline whether or not you have a prepayment penalty.

Should You Refinance Instead?

Another option you may consider is refinancing your mortgage. There are several reasons you may want to refinance instead of paying off your mortgage.

Lower monthly payment. Getting a lower rate or different loan term may lower your monthly payment. Be sure to check out current rates, and use a calculator for mortgages to find out what a possible new payment would be.

Shorter mortgage term. Refinancing a 30-year mortgage to, say, a 15-year mortgage can keep you close to paying off your mortgage while also providing financial flexibility.

Spare cash. Whatever your need is — home renovations, college funding, paying off higher-interest debt — a cash-out refinance might be an option.

💡 Quick Tip: Compared to credit cards and other unsecured loans, you can usually get a lower interest rate with a cash-out refinance loan.

The Takeaway

What happens when you pay off your mortgage? After doing a jig in the living room, you’ll need to take care of a few housekeeping tasks and make plans for the extra money.

An option to consider: Would a refinance to a shorter term make more sense, or pulling cash out with a cash-out refi? It can be wise to review all your options as you move toward taking this major financial step.

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

Is paying off your mortgage a good idea?

The answer depends on an individual’s situation. If you have the money and you’d love to shed that monthly obligation for good, paying off a mortgage is a good idea. But if you’re worried about funding your retirement or losing opportunities to invest, paying off your mortgage may not be a good idea for you.

What do you do after you pay off your mortgage?

Ensure that you have received your canceled promissory note, and update your property tax and insurance billers on where to bill you. Since you no longer will have a mortgage servicing company, you must pay your insurance and property taxes yourself.

Is it better to pay off a mortgage before you retire?

Paying off a mortgage could give you more money to work with in retirement. But if your retirement accounts need a boost, most financial experts contend that allocating money there is a better idea than paying off your mortgage. Paying off a mortgage when you have low cash reserves can also put you at risk.

Does paying off your mortgage early affect your credit score?

Surprisingly, paying off your mortgage early won’t affect your credit score much. Your credit score has already taken into account the years of full, on-time payments you made each month.

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Photo credit: iStock/katleho Seisa

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

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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

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

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.

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If you’re thinking about refinancing your home loan or paying off your mortgage early, you might request a mortgage payoff statement. The amount due on this document is likely to be different from your current balance because it includes interest owed until the payoff date and any fees due.

Read on to learn more about what a mortgage payoff statement or letter is and when you might need one.

What Is a Mortgage Payoff Statement?

Starting with mortgage basics, a mortgage is a loan used to purchase different types of real estate, including a primary home. A bank or other lender agrees to lend money, which the borrower commits to pay back monthly for a set period of time and with interest.

The different types of mortgage loans include conventional and government-insured mortgages and reverse mortgages.

There are jumbo loans, which exceed the dollar limits set by the Federal Housing Finance Agency, and home equity loans.

Say you have a mortgage and want to know exactly how much you’d need to pay to satisfy the loan. A mortgage payoff letter will tell you that magic number. Unlike your current balance, the payoff amount includes interest owed up to the day you intend to pay off the loan. It may also include fees that you’re on the hook for and haven’t paid yet.

Your monthly mortgage statement, on the other hand, only shows your loan balance and the amount due for your next monthly payment.


💡 Quick Tip: You’ve found an award-winning home. Enjoy an award-winning mortgage experience, too. SoFi has knowledgeable Mortgage Loan Officers to guide you through the process.

How Does a Mortgage Payoff Statement Work?

You can request a payoff statement from your loan servicer at any time. Note: Your mortgage servicer may be different from your lender. The company that manages your loan handles billing, accepts loan payments, keeps track of your principal and interest, and fields questions from borrowers.

You may request a payoff statement for any type of loan, including mortgages, student loans, personal loans, and auto loans. However, if you need your mortgage payoff statement, go to your mortgage servicer directly. The name and contact information of your mortgage servicer is included in your monthly statements.

When you make the request from the company that handles your mortgage servicing, you’ll need to provide the following details:

•   Your name

•   Address

•   Phone number

•   Your loan number

•   The date you want your payoff to be effective if you’re seeking to pay off your mortgage early.

Asking for a payoff statement does not necessarily mean that you intend to pay off your loan immediately. You may simply be determining whether or not paying off your mortgage early is feasible, for example. The request itself does not initiate the prepayment process.

Traditional lenders, such as brick-and-mortar banks, may mail you a paper mortgage payoff statement. Online lenders may send a payoff statement online.

Recommended: 5 Tips for Finding a Mortgage Lender

What Information Do Mortgage Payoff Letters Contain?

All mortgage payoff letters tend to contain similar information, including:

•   Payoff amount: The amount of money that would satisfy the loan.

•   Expiration date: The date through which the payoff amount is valid. The letter may also include an adjusted amount should you pay before or after the expiration date.

•   Payment information: The letter will also usually tell you who to make the final check out to and where to mail it.

•   Additional charges: You will be alerted to any additional fees and charges that you’ll need to include.

💡 Quick Tip: Your parents or grandparents probably got mortgages for 30 years. But these days, you can get them for 20, 15, or 10 years — and pay less interest over the life of the loan.

Do You Need a Mortgage Payoff Statement?

There are a few common situations in which you might need a payoff statement.

•   Refinancing a mortgage: When you refinance your mortgage, your chosen lender pays off your old home loan with a new one, preferably with a lower interest rate and possibly a new term. When you seek to refinance, your new lender may ask you to provide a payoff statement on your current loan.

•   Prepaying a mortgage: It’s possible to pay off a mortgage early. A payoff statement will show you exactly how much you’d need to pay to do so. Most prepayment penalties for residential home loans that originated after January 10, 2014, are prohibited. Still, check before you decide to prepay.

•   Working with a debt relief company: If you’re having trouble managing your debts, you’ve fallen behind on payments, or you otherwise need mortgage relief, you may choose to work with a debt relief company that can help negotiate with your lenders. The company will need to see payoff statements to get an idea of the scope of your debt.

“No matter what method works best for you, it’s important to cut spending as much as you can while you’re tackling your debts,” said Kendall Meade, a Certified Financial Planner at SoFi.

•   Collections and liens: A lender might send you a payoff statement if you’ve fallen behind on your payments and they are sending your debt to a collection agency. In this case, the payoff statement may tell you how much you need to pay to stop the collection action.

   If your lender decides to seize your home to recoup unpaid mortgage payments, they may place a lien on the property. They may send a payoff statement that alerts you that your property will be seized if the specified amount isn’t paid in full.

There are other ways to figure out how much you owe on your mortgage loan. You can talk to your lender and ask for a verbal payoff quote. This will provide an estimate, but understand that it is not a legal agreement and isn’t binding.

The Takeaway

If you have a home loan, you may want to request a mortgage payoff statement, especially if you’re thinking about refinancing or paying off your mortgage early. Requesting the mortgage payoff letter does not initiate any formal processes, so it’s fine to think of it as an information-gathering exercise.

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 do I get my mortgage payoff statement?

Contact your loan servicer to request your mortgage payoff statement.

When should I get my mortgage payoff statement?

Request your mortgage payoff statement when planning to prepay your mortgage, refinance, or consolidate debt.

How long does it take to get a mortgage payoff statement?

Generally speaking, you should receive your mortgage payoff statement within seven business days of your request.

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Photo credit: iStock/Vadym Pastukh

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

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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

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

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.

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Buying a home can be exciting, exhausting and, no matter how smoothly the process may go, one of the most stressful things you can do in life. Not having enough money to adequately finance a purchase makes it all the more daunting. Fortunately, there are first-time homebuyer programs available in every state, making it easier for many people to access the resources they need to buy their new home, and to feel more secure through the whole process.

Keep in mind that first-time homebuyers don’t actually have to be buying their first home. A first-time homebuyer is defined as anyone who hasn’t had an ownership interest in a primary home in the past three years.

The U.S. Department of Housing and Urban Development (HUD) also includes in its list of qualified homebuyers:

•   A single parent who has only owned a home with a partner while married

•   A displaced homemaker who has only owned a home with a spouse

•   Someone who has owned a principal residence not permanently affixed to a permanent foundation

•   Someone who has only owned a property that wasn’t in compliance with state, local, or model building codes

Here are the homebuyer programs that qualified first-time buyers have available to them in the Northeast:

Maine

Thinking of buying a home in the land of lobster and lighthouses? You’ll want to learn about the market and assess your financial situation before you start searching for a home mortgage loan. (A guide to the different types of mortgage loans can help.)

The scoop on the Main market: Prices in the Pine Tree State were up 5.7% in February 2024 when compared to the prior year, with homes selling for a median of $360,200, according to Redfin. The three most competitive cities for homebuyers were Standish, South Berwich, and Gray.

💡 Learn about Maine first-time homebuyer programs

New Hampshire

The housing market in the Granite State is hot. From February 2023 to February 2024, home prices rose 12.5% to an average sale price of $447,400, according to Redfin. And 41.8% of the homes sold above their list price. Still, there are good opportunities for the first-time buyer in the state, and there are first-time homebuyer assistance programs to help you reach your homeowning goal.

💡 Learn about New Hampshire first-time homebuyer programs

Vermont

The Green Mountain State is paradise for outdoorsy types with forests, lakes, and mountains. No wonder then that the housing market has heated up: The number of homes sold increased 14.2% between February 2023 and 2024. Prices were up 6.5% as well, according to Redfin.

Homebuyers may need help to afford a home with the median price here hitting $361,300. Fortunately, the state has several programs to offer.

💡 Learn about Vermont first-time homebuyer programs

Massachusetts

Glorious New England scenery, a rich history, and diverse cultural and educational opportunities are just some of the things Massachusetts has to offer residents. It’s no wonder that home prices here outpace the national average, or that they are rising. Prices in Massachusetts were up 9.9% in the year ending February 2024, Redfin reports. The median sale price in the state is now $576,900.

At the same time, the median number of days a home stays on the market has dropped by 5 year-over-year, an indicator that the market is warming. Still, there are plenty of opportunities for the first-time homebuyer in Massachusetts.

💡 Learn about Massachusetts first-time homebuyer programs

Rhode Island

This small state is big on charm: Rhode Island’s miles of coastline offer beautiful beaches and picturesque inlets, and you’ll also find dynamic cities and rural small towns here. There’s a lot for the first-time homebuyer in Rhode Island to get excited about. But prices here are well above the national average of $342,941. The average property value is $438,711, up 8.3% year over year, according to Zillow. Wondering what a down payment would look like on a given property price? Use a mortgage down payment calculator to do the math.

💡 Learn about Rhode Island first-time homebuyer programs

Connecticut

You’re looking at a competitive market in the Constitution State: In February 2024, home prices in Connecticut were up 13.2% year-over-year. The median price of a Nutmeg State home is $375,300, according to Redfin, and the number of days a property stays on the market is declining. Fortunately you can still find affordable homes in Torrington and New Britain, among other affordable places in Connecticut.

💡 Learn about Connecticut first-time homebuyer programs

New York

The housing market in New York state can be challenging, especially for first-time buyers. Home prices in the Empire State in January 2024 were up 6.3% over the prior year, with a median sale price of $518,800. The number of days on the market dropped as well. A stunning 37% of homes sold above their listing price.

💡 Learn about New York first-time homebuyer programs

New Jersey

The Garden State saw record real estate sales in some areas in recent years as city dwellers fled to the suburbs. In the year ending February 2024, home prices in New Jersey were up 14.5% over the prior year, and the median sales price was $479,100. The median days on the market dropped 15 year-over-year to 46. Buyers in New Jersey need to prepare themselves to compete in this market.

💡 Learn about New Jersey first-time homebuyer programs

Pennsylvania

Thinking of buying a home in Pennsylvania? Prices rose 6.6% from January 2023 to January 2024, to a median of $264,700, Redfin reported. It’s a seller’s market here, so you may have to compete to get the home you want, especially in cities like New Castle (home prices were up more than 31% in a year) and Mechanicsburg (up 55.5%). Harrisburg and Lancaster ranked as some of the best affordable places to live in Pennsylvania.

💡 Learn about Pennsylvania first-time homebuyer programs

The Takeaway

Qualifying first-time homebuyers have many options available to them in the Northeast, including down payment assistance. If you’re looking to buy your first home and aren’t sure how to get started, researching homebuyer programs is a great place to start. Once you know what kind of assistance you may qualify for, it’s a good idea to estimate just how much house you can really afford using a home affordability calculator.

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.

---

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

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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

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

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.

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