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When homebuyers take out a conventional mortgage but don’t have a 20% down payment, they will likely need to get private mortgage insurance. PMI is usually required when the down payment is less than 20% of the home’s value.

In some situations, a lender may arrange for PMI coverage. It then becomes known as lender-paid mortgage insurance. For some homebuyers, LPMI can work in their favor. But for others, having a lender secure private mortgage insurance can end up costing them.

Read on to learn more about LPMI and the pros and cons for homebuyers.

How Does Lender-Paid Mortgage Insurance Work?

Unless 20% or more of a home’s value is paid upon closing, homebuyers can typically expect to be required to purchase private mortgage insurance, or PMI.

While government-back loans tend to have their own insurance programs (for instance, most FHA loans require a mortgage insurance premium for 11 years or the life of the loan), most loans not provided by the government with a loan-to-value ratio higher than 80% require PMI to protect the lender in case of default.

PMI is typically purchased in one of four ways, and it’s a home-buying cost you’ll want to budget for. PMI can be paid:

•   Along with monthly mortgage and insurance payments

•   In one annual premium

•   With one large payment and corresponding monthly payments

•   By the mortgage lender in a LPMI policy

While it may seem that the last option, LPMI, eliminates a task on a homebuyer’s to-do list, there is some fine print to be aware of.

Having LPMI for a loan doesn’t mean the cost is absorbed by the lender. A homebuyer will still pay for the coverage in one of two ways:

•   A one-time payment due at the beginning of a loan.

•   A slightly higher interest rate — usually 0.25% — which increases the monthly mortgage payment. This is the more common arrangement of the two.

So while many homebuyers accept an LPMI arrangement in hopes of saving money, that isn’t automatically the case. Sometimes LPMI is more about convenience than savings.

In fact, unless they’re paying a one-time lump sum, homebuyers could end up spending more for LPMI over the life of their loan than if they had chosen a traditional PMI route. That’s a potential home-buying mistake you’ll want to avoid.

LPMI might be a good choice for a homebuyer planning to keep the mortgage for five to 10 years or stay in the home. It usually takes 11 years to build enough equity to cancel a borrower-paid PMI policy.

💡 Quick Tip: SoFi Home Loans are available with flexible term options and down payments as low as 3%.*

A Pro of LPMI

Before a homeowner writes off lender-paid mortgage insurance altogether, it’s best to look at a potential benefit the arrangement offers over traditional monthly mortgage insurance.

More Affordable Monthly Payment

With LPMI, the monthly payment could be more affordable because the cost is spread out over the entire loan term rather than bunched into the first several years.

Here’s an example. If Sarah buys a home with a 10% down payment and it takes her 10 years to get the loan-to-value ratio down to 78% (a lender automatically drops PMI payments at this percentage if the borrower is in good standing), those 10 years of payments could all include several hundred dollars in addition to her premium and interest payments.

While LPMI may not save Sarah money overall, she may have smaller monthly payments because the additional payments for coverage are stretched out equally over the entire life of her loan rather than the start.

Recommended: How to Get a Mortgage in 2023

… and Potential Cons

In the right situation, LPMI can make sense. But there are potential downsides homebuyers should know about as well.

Rate Never Drops

While having mortgage insurance stretched out over the life of a loan can save some homebuyers money, it can cost others. The higher interest rate — as mentioned, a 0.25% rate increase is common — will never drop, even once the loan balance is less than 80% of a home’s purchase price.

LPMI can end up costing homebuyers more than if they had bought PMI on their own. Much depends on how long the borrower expects to hold the mortgage.

Refi Costs

Some homebuyers navigate toward LPMI because of the initial savings and hope they can refinance in the future.

While this may be a possibility, they must consider the sizable out-of-pocket costs that go along with refinancing, and that refi rates may be higher in the coming years.

No Itemizing

LPMI can’t be itemized if you deduct mortgage interest at tax time.

💡 Quick Tip: To see a house in person, particularly in a tight or expensive market, you may need to show proof of prequalification to the real estate agent. With SoFi’s online application, it can take just minutes to get prequalified.

PMI vs LPMI

There are several numbers to take into consideration when choosing between traditional PMI and LPMI, including:

•   the down payment

•   remaining mortgage

•   interest rate (for LPMI, a 0.25% rate increase is common)

•   average mortgage insurance rate (PMI is typically 0.5% to 1.5% of the loan amount per year)

•   anticipated life of the mortgage loan

•   monthly budget.

A borrower may want to not only consider the monthly payment but also the lifetime loan costs.

The difference between PMI and LPMI is different for every homeowner and situation. Taking the time to crunch the numbers is the only way to fully understand the pros and cons of each option.

LPMI Alternatives

LPMI isn’t always the clear winner when choosing between mortgage insurance options. There are alternatives to consider.

Put More Down

A down payment of at least 20% will eliminate the need for PMI entirely. There are several other benefits that go along with larger down payments as well, such as a better loan rate, making this a great option for those who can afford it.

Shop Around

One main disadvantage of LPMI is that the homeowner has little to no control over the price and provider. So when homeowners are responsible for their own PMI, shopping around for the best price becomes an option.

Piggyback Mortgage

A piggyback mortgage makes it possible to avoid PMI with a combination of loans.

It’s important to understand the pros and cons of a piggyback mortgage before deciding on one as an alternative to LPMI to avoid potential financial pitfalls.

Recommended: Second Mortgage Explained: How It Works, Types, Pros, Cons

The Takeaway

If mortgage insurance is necessary to secure a loan, understanding all the options is the first step any house hunter should take. This includes lender-paid mortgage insurance vs. PMI. While LPMI may serve as an overpriced convenience for some, it can be the financially smarter option for others.

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 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.

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

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

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

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.

SOHL0623048

You’ve decided to buy a home. Luckily, you’ve found a real estate agent who can help you find homes to look at and assist with negotiations and inspections. But what if that agent also works for the seller? But what if that person also works for the seller? That is called dual agency, and there’s a lot to consider before agreeing to the arrangement.

Here’s what future homebuyers need to know about dual agency to help decide if it’s the right choice for them.

What Is Dual Agency?

A dual agent represents both the buyer and seller in the same real estate deal. Dual agents are also sometimes referred to as transaction brokers.

Dual agency can be controversial and is banned in eight states: Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas, Vermont, and Wyoming.

Other states do not explicitly make it illegal, but some do warn against using a dual agent.

For example, the New York Department of State issued a memo advising consumers to be extremely cautious when signing on with a dual agent because in doing so they forfeited their right to an agent’s loyalty.

However, in every state where dual agency is legal, the law requires agents to disclose their work with both the buyer and the seller. Both buyer and seller must agree to use a dual agent and sign a consent form indicating they understand what they are agreeing to.

Dual agency may also refer to deal-making of seller’s agents and buyer’s agents at the same real estate company.

For example, Keller Williams, one of the largest real estate firms in the nation, has both seller’s and buyer’s agents. If one of its seller’s agents puts a home on the market, there’s a decent chance that one of its buyer’s agents may have a client for the property.

This is less controversial and poses fewer issues as it is still two separate people overseeing the seller’s and the buyer’s interests.

Recommended: How to Buy a House Without a Realtor

What Are Agents’ Fiduciary Responsibilities?

Real estate agents are legally bound to represent the best interests of their clients. This means agents are to disclose any information they have that may or may not help their clients in the negotiating phase.

The obligation to disclose could pertain to information on home inspection reports, defects with the house, or anything else that affects the property’s value.

While representing a buyer, an agent must also disclose any existing relationship with the seller.

Be sure to ask real estate agents important questions about how they work and what they’ll do for you so you’ll know whether they’re the right agent for your needs.

A seller’s agent must disclose any relationship with potential buyers and all offers made on the property—unless, in general, the seller has instructed his agent in writing to withhold certain kinds of offers.

Real estate agents are also expected to put their clients’ financial best interests above their own. This could mean putting in an offer below asking price, which would reduce their own commission.

With all of that in mind, it becomes clear that issues of loyalty and confidentiality become challenging in a dual agency situation.

Pros of Dual Agency

Smoother communication: Having one agent representing both the buyer and seller could help create a smoother communication path. Because the person represents both parties, they may be able to speed up any negotiations. In this case, the dual agent may also better understand both the seller’s and the buyer’s timelines, their schedules, and any internal deadlines better than two separate parties could. Buyers wouldn’t have to wait for the seller’s agent to call back and sellers wouldn’t have to wait for a buyer’s agent to call back, because with dual agency they are the same person.

Potentially more information on the home: A dual agent may be able to obtain more information on the home than an agent just representing the potential buyer. In turn, they can relay any pertinent information, such as structural issues, inspection reports, and any updates made to the home, to the potential buyer.

Potentially more access to a larger pool of homes: Remember, dual agency also means a buyer’s agent and seller’s agent working for the same agency. That means, if one home doesn’t work out, the two agents could look internally to find more potential homes their agency represents for the would-be buyers. They may even be able to find a few homes that haven’t hit the market yet.

Possibility for a discount on commission: In a typical real estate transaction, the seller’s agent and buyer’s agent split the commission. A dual agent may be willing to negotiate down their commission since they are double-ending the deal.

Dual agents still have to do their job: In the end, even dual agents must present all offers, prepare all paperwork, present all disclosure agreements, and help to complete the deal.

Recommended: 6 First-Time Homebuyer Mistakes to Avoid

Cons of Dual Agency

Buyers (and sellers) won’t get special treatment: Agents only working for one side will likely be willing to go all out for their client to ensure that the client gets the best deal. An agent working for both sides may be more tempted to get the best deal for themselves to maximize the commission (hey, it’s just human nature to look out for No. 1). A buyer (and a seller) usually wants loyalty above all else when looking for a home. Homebuyers may want to seek out someone who knows what’s needed to buy a house and has their back.

Buyers (and sellers) may not get the price they want: Again, a dual agent’s allegiances are split down the middle during the deal-making process. A seller’s agent is meant to promote the home and get the seller the best price for the home with the fewest contingencies.

A buyer’s agent is on a mission to find every tiny thing that needs to be fixed with the home to get the buyer the best deal they can. If a person is representing both sides, how can they do both? It’s important to discern an agent’s allegiances before signing on the dotted line.

No pushback from the other agent: In a two-sided real estate deal, the two agents will typically go back and forth on the home’s price, any reductions the buyer may want in exchange for repairs, the home’s inspection report, and much more. This creates a system of checks and balances for both sides, which can be important when negotiating a fair deal. However, if one person is playing both sides, things may get muddled, hurting both the seller and the buyer.

The Takeaway

Dual agency is rare in the real estate world because most buyers and sellers want to find an agent who is loyal to them and has their best interests at heart. Still, if you find yourself in a dual agent situation, there is much to know.

There’s another important decision most homebuyers must make: getting the right home loan. Different lenders may offer different terms, rates, or perks that may fit a buyer best.

SoFi offers mortgage loans with competitive rates, an online application, and mortgage loan officers who can answer your questions.

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

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

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

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.

SOHL0623050

When you’re buying a home, you probably have a million questions that need answering, especially when it comes to getting the proper insurance to protect your investment.

Soon-to-be homeowners may see both title and homeowners insurance on the lending documentation and wonder what the difference is between the two. While both types of insurance can provide vital coverage for homeowners, they differ vastly in their purpose and protection.

What Is Homeowners Insurance?

A homeowners insurance policy protects a home and personal property from loss or damage. It may also provide insurance in the event someone is injured while they are on the property.

Here are some common things homeowners insurance may cover:

•   Damage that may occur in the home, garage, or other buildings on the property
•   Damaged, lost, or stolen personal property, such as furniture
•   Temporary housing expenses if the homeowner must live elsewhere during home repairs

Depending on the policy, homeowners insurance may also cover:

•   Physical injury or property damage to others caused by the homeowner’s negligence
•   An accident that happens at home, or away from home, for which the homeowner is responsible
•   Injuries that take place in or around the home and involve any person who is not a family member of the homeowner
•   Damage or loss of personal property in storage

Some coverage may also apply to lost or stolen money, jewelry, gold, or stamp and coin collections.

Buying Homeowners Insurance

While someone can legally own a home without taking out homeowners insurance, the mortgage loan holder may require the homeowner to purchase an insurance policy. Typically, lenders do require this as a condition of the home loan.

It’s important to understand that homeowners need to insure the home but not the land underneath it. Some natural disasters — tornadoes and lightning, for example — are covered by typical homeowners policies. Floods and earthquakes, however, are not. If you live in an area where floods or earthquakes are common, you may want to consider purchasing extra insurance to cover damages from potential disasters.

Special coverage may also be worthwhile for those who own valuable art, jewelry, computers, or antiques.
There are two policy options that can help homeowners replace insured property in the event of damage or a loss. Replacement cost coverage covers the cost to rebuild the home and replace any of its contents, while actual cash value simply pays the current value of the property at the time of experienced loss.

When it comes time to shop for and buy homeowners insurance, start by asking trusted friends, family, or financial advisors for their recommendations. Do some online research, too. Before you make a final decision, contact multiple companies and request quotes in writing to compare their offerings. That process can give you a good idea of who is offering the best coverage for the most affordable price.

Recommended: Is Homeowners Insurance Required to Buy a Home?

What Is Title Insurance?

Title insurance provides protection against losses and hidden costs that may occur if the title to a property has defects such as encumbrances, liens, or any defects unknown when the title policy was first issued.

The insurer is responsible for reimbursing either the homeowner or the lender for any losses the policy covers, as well as any related legal expenses.

Title insurance can protect both the homeowner and lender if the title of the property is challenged. If there is an alleged title defect, which the homeowner may be unaware of at the time of purchase, title insurance can provide protection to cover any losses resulting from a covered claim.

The policy will cover legal fees incurred if there is a claim against the property.

Recommended: How to Read a Preliminary Title Report

Buying Title Insurance

Both home buyers and lenders can purchase title insurance. If the home buyer is the purchaser, they may want to insure the full value of the property. (The value of the property will affect how much the policy costs). When the lender is the purchaser, they typically only cover the amount of the homeowner’s loan. When it comes time for a home buyer to purchase title insurance, they have full choice of the insurer.

According to the Real Estate Settlement Procedures Act (RESPA) of 1974, the seller cannot require the home buyer to purchase title insurance from one certain company.

Lenders are required to provide a list of local companies that provide closing services, of which title insurance is just one. But it may be worth doing independent research. Lenders may not select their recommendations based on the home buyer’s best interest, but instead because a service provider is an affiliate of the lender and provides a financial incentive in exchange for a recommendation.

Again, it’s a smart idea to seek the counsel of friends and family and do online research to uncover competitive prices and learn which service providers have a solid reputation.

Recommended: What Are the Different Types of Mortgage Lenders?

The Takeaway

Homeowners insurance is an ongoing cost (billed monthly, quarterly, or annually) that helps cover damage or loss of the home and possessions within the home. Title insurance, on the other hand, can help protect against losses caused by defects in the title and is a one-time fee payable during the closing process. The advantage to having both types of coverage is that each policy can protect homeowners against financial loss in very different circumstances.

Shopping for homeowners insurance often requires considering several options, from the amount of coverage to the kind of policy to the cost of the premium. To help simplify the process, SoFi has partnered with Experian to bring customizable and affordable homeowners insurance to our members.

Experian allows you to match your current coverage to new policy offers with little to no data entry. And you can easily bundle your home and auto insurance to save money. All with no fees and no paperwork.

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

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

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

SOPT0623005

A cross-country move is exciting. You’ll make friends, have new experiences, and dive into a whole new way of life in a new city. But not so fast: You have to get there first. And one of the big decisions you’ll have to make when moving across the country is whether to drive your car yourself or hire a shipping company to move it for you.

There are a lot of considerations to keep in mind when making this decision, from weather to safety to timing. And of course, there are shipping costs to think about. To make the right choice, take the following factors into account.

Driving Distance

Getting your vehicle to your new home could be one of your biggest moving expenses. When deciding whether to drive or ship your car, the first step is to get a sense of how long the drive actually is. Use a mapping app to get a sense of the various routes you could take, the total distance, and a driving time estimate.

Understanding distance can help give you a sense of how much fuel you’d need to make the journey. Consider how many miles per gallon of gas your car usually gets. Divide the total distance by that number, and that can help you create a rough estimate of how much gas you might expect to purchase.

You may also want to factor in the average gas prices in the locations you’ll be driving through. The American Automobile Association (AAA) aggregates the average price for a gallon of gas in each state, and nationally.

Mapping can also give you a sense of what kind of conditions you can expect to be driving in. For the most part, you may expect to take major highways. But will your route take you across mountains or deserts? These regions might be tough on a vehicle, especially if it’s older and prone to overheating, for example.

Recommended: How to Save Money on Gas

Seasonal Considerations

The time of year you plan to move can make a big difference when it comes to driving conditions. Driving in balmy July weather can be very different from driving through wintry conditions in February, especially if your trip takes you across the northern part of the country where there is a chance of snowy or icy conditions.

Take geographical features, like mountains, into consideration as well. For example, there may be snow in mountain passes far earlier than in places closer to sea level. So, though a cross country trip in October may be snow free in most parts of the country, you might encounter wintry conditions as you cross the Rocky Mountains.

If driving through adverse weather does not sound appealing to you, you may consider shipping your car instead.

Recommended: How to Move Across the Country

Timing

Driving from coast to coast at a fairly reasonable clip could take as little as a few days or as long as a week. If you’re driving with someone else, you can switch off drivers and the trip may take less time.

If you’re driving solo, you may take extra time as you make stops to ensure you’re well rested enough to safely continue your journey. If you can’t afford to take the time off to drive your car yourself, shipping may make more sense.

Recommended: 13 Helpful Tips for You to Afford Moving Out

Safety

When you drive across the country, you necessarily put yourself and any passengers at a certain amount of risk. Your car will experience more wear and tear on a long drive, and you face the possibility of breakdowns.

What’s more, you risk the possibility of theft while you’re on the road, whether of your vehicle itself or its contents.

There is also a chance that you could get into an accident while on the road. Shipping your car limits potential damage to your vehicle and shields you from personal safety hazards.

Recommended: 31 Ways to Save Money on Car Maintenance

Cost to Ship a Car

The cost to ship a car across the country will depend on a number of factors, including the size and weight of the vehicle, the distance the vehicle will be shipped, and what kind of insurance you want to buy.

To a certain extent, price may depend on demand, which can fluctuate throughout the year. The more cars are being shipped along a certain route, the pricier it will be. While prices vary, September through November are generally the cheapest months to ship a car.

On average, it costs around $1,108 to ship a car. Again, price depends on the length of trip, but also on whether you choose an open transport or an enclosed transport. A 2,750-mile trip in an open transport costs about $1,210, while covering that same distance in an enclosed transport runs about $1,580.

You may also want to consider the option of shipping your car by train, which may be faster and cheaper than sending it on a truck. You may have to purchase a ticket and ride the same train that your car is on.

When considering shipping as an option, it’s also important to consider other potential costs associated with it. For example, you will have to purchase plane tickets for you and your family. If you drive your own car, you can pack it full of items you want to move with you. When you arrive at your destination, you may need to rent a car until your own vehicle arrives.

Recommended: Ways to Be a Frugal Traveler

Cost to Drive a Car

In many cases, it may be cheaper to drive your car than it is to ship it. According to Move.org, it is, on average, about $180 cheaper to drive a car than to have it shipped, factoring in the costs for food, lodging, and fuel for one person.

The longer the distance, however, generally the closer the two costs come together. Driving a car 1,000 miles versus shipping it over the same distance costs $470 and $980 respectively. Driving a car 2,750 miles versus shipping that same distance, on the other hand, runs $1,220 and $1,210 respectively.

Lodging is one of the greatest expenses you will encounter while you’re on the road. The more nights you spend on the road, the more expensive driving your car yourself will become. You can of course consider less expensive options, like staying in an Airbnb or visiting with friends along the way.

Making the Decision

As you tackle your moving checklist, the decision to to drive across the country or ship your car will depend on a lot of factors. In some respects it comes down to convenience. Do you have the time to ship your car? Will you need it right away? Do you want to risk driving in poor conditions? In other respects it comes down to cost.

For the most part, driving costs less than shipping. However, the longer the drive, the difference in cost between the two options starts to shrink.

If you decide to ship your car, do your research. Ask friends and family for recommendations and check out company reviews and reports from the Better Business Bureau. Contact multiple shipping companies to make sure you get the best rate.

No matter what you decide, moving is potentially a pricey proposition. If you need a little extra help covering the cost of the move, consider a relocation assistance loan. These loans are personal loans that can cover the cost of shipping your car and other moving related expenses.

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.

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.

SOPL0623035

If you’re a homeowner, there are plenty of reasons why you may want to boost your home’s curb appeal. A more attractive exterior can help make your house more appealing to buyers, and it could even boost its perceived value. Plus, adding a few simple upgrades can make your place feel more enjoyable however long you decide to live there.

Looking for inspiration? Here are five curb appeal ideas to consider.

1. Revitalize the Front Door and Mailbox

A fresh coat of paint on a front door can do wonders, and certain colors can be especially appealing. For instance, buyers tend to prefer homes with a black or slate blue door and may be willing to pay an average of $1,537 more for one, according to Zillow. On the other hand, other front door colors, such as a pale pink or cement gray, could have a negative impact on a home’s value.

This can also be the time to update the doorknob and door knocker, and any hardware on the door, including the street number. While you’re at it, what about a matching new mailbox? They even come with LED lights nowadays to do double duty.

2. Curb Appeal Landscaping

When choosing landscaping elements, keep the design of the home in mind, along with the size and slope of the lawn. A large lawn might look wonderful with shrubs that would likely overwhelm a smaller one, while eye-catching flowers might look perfect in front of a cottage-style dwelling but get lost in the shuffle in front of a big home. For curb appeal landscaping, also consider how its design moves guests in an attractive way to the front door, perhaps wending along the walkways.

Entire books can be written on curb appeal landscaping options, so enjoy exploring! While doing so, don’t forget how attractive window boxes full of blooming flowers can look. Consider integrating native flora and fauna, which have already adapted to your local climate and soil conditions and should thrive in your yard.

3. Upgrade Windows and Shutters

For a significant change in the look of a home, consider a brand-new style of windows. Options include eye-catching casement windows that are hinged to open horizontally through the use of a crank. With these windows, one side stays in place while the other side opens like a door.

Awning windows can be another interesting choice. With this style, the window swings open from the bottom while the top part stays fixed in place. Bay windows can also really make a difference in curb appeal. Also consider new shutters, perhaps ones that complement a newly painted front door.

4. Don’t Forget the Lighting

As part of curb appeal landscaping, also think about outdoor lighting that will really set off the new look. A new fixture on the porch can make a difference, aesthetically.

Along the front of the home and walkways, outdoor solar LEDs can be one option because they aren’t hard to install and can be cost efficient. They don’t create bright light, though, so they can be used as a form of supplementary lighting.

Traditional glass lanterns can be attractive, especially when paired with vintage-style bulbs. Ones that mimic the gas lanterns of the Victorian era have been trending.

5. Repair the Roof

If the roof has loose or missing shingles, this can make even the most appealing home look in need of some tender loving care. So, addressing these problems can add to curb appeal. As part of the project, check gutters and downspouts and take care of them as needed.

Costs for Upgrades

After thinking about what projects to take on, the next question to consider may be what these home remodeling projects cost.

New front door

A new door can cost under $100 for a basic hollow core choice up to $7,000 or more for a pricey wrought iron door. If you’re on a budget, you may want to consider painting an existing door and replacing hardware and a doorknob.

Landscaping

As with just about any home improvement project, curb appeal landscaping costs can vary by project. Lawn mowing services run around $55-$70 per hour on average, while laying sod could cost between $1,568 and $2,409, according to the home services website Thumbtack.

New windows

On average, new windows cost $850 on average, although this can vary by the home’s style and location. The cost for replacing all windows in a typical three-bedroom home can run between $3,000-$10,000. That said, the investment may be worth it, as new energy-efficient windows can save up to 15% of energy bills.

Roof repairs

Small roof repairs can cost between $150-$400, with labor charges of anywhere from $45 to $75 hourly. Nationally, the average roof repair costs $1,066, with a range between $379 and $1,766, according to Angi and HomeAdvisor. Repairing the gutters can come with an average price tag of $383 (falling somewhere between $193 and $620, depending on the height of the house, the gutter length and type, and repairs needed). When a full replacement is needed, figure $1,600-$2,175.

Funding Your Curb Appeal Ideas

As much fun as it is to dream of all the ways to improve the exterior of your home, just as important is how you’ll pay for the upgrades. You may decide to pay for the improvements out of a savings account or put everything on credit cards and pay off the balances in full when they’re due.

Keep in mind that if you choose to use credit cards — but are unable to pay off the balances in full when they’re due — you’ll likely be charged compound interest on the balance. And that could add to the overall amount you owe. To see how compound interest can pile up, take a look at this credit card interest calculator.

If it doesn’t make sense to use credit cards to fund curb appeal ideas, then you may want to explore a home equity line of credit (HELOC) or a personal loan.

Taking out a HELOC can make sense under certain circumstances, including these:

•   Significant equity exists in the home.

•   A large sum of money is needed.

•   Potential tax benefits are attractive.

Benefits of a personal loan include the following:

•   If the loan is unsecured, then home equity will not be tied up.

•   Fees are probably less; in some cases, there aren’t any.

•   The application process is usually easier, with the approval process typically quicker than the process for a HELOC.

What Style is My House Exterior Quiz

The Takeaway

Improving your home’s curb appeal can help make it more attractive to prospective buyers and potentially increase its perceived value. The upgrades can also make your home more enjoyable to live in, no matter how long you’re there. Certain curb appeal ideas can have more of an impact. These include freshening up the front door and mailbox, adding or improving the landscaping, upgrading windows and shutters, adding outdoor lighting, and making necessary repairs to the roof.

The cost of making exterior improvements varies based on the work you’re doing and whether you’re hiring a professional. There are different ways to fund a curb appeal project, including using savings, using a credit card and paying off the balance when it’s due, or taking out a HELOC or personal loan.

If you’re ready to roll up your sleeves and get some curb appeal work done, see what a SoFi personal loan can offer. With a SoFi Home Improvement Loan, you can borrow between $5k to $100K as an unsecured personal loan, meaning you don’t use your home as collateral and no appraisal is required. Our rates are competitive, and the whole process is easy and speedy.

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

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