Easy online lender, but few types of mortgages

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Types of Loans Offered

Compliant, jumbo, fixed rate mortgages

Types of Loans Offered

Compliant, jumbo, fixed rate mortgages

Advantages

  • Handy
  • Multi-term length options
  • Membership privileges available to previous customers

Disadvantages

  • You must create an account to view custom values
  • It does not offer government-sponsored loans
  • There are no adjustable price options
  • A 3% discount is only available to first time home buyers – others must reduce it by at least 5%.

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More information

  • Mortgage lender online only
  • Does not offer mortgages in Hawaii, Missouri, New Mexico, New York or West Virginia
  • This lender does not accept alternative credit data
  • The minimum credit score and down payment shown are for compatible mortgages. The 3% discount option is only available to first time home buyers. other borrowers must reduce by at least 5%.

Overall lender rating

Pros and cons

SoFi mortgage rates and commissions

SoFi shows a small interest rate sampling on its home loan home page. To get there, hover over the “products” menu at the top left of the page. These sampling rates are based on a $ 325,000 mortgage and a 20% down payment.

Your interest rate will depend on a number of factors, including your credit score and the amount you plan to pay. If you want to see prices that are personalized for your financial situation, you will need to create an account, so SoFi will make a slight pull on your credit (meaning that your credit score will not be affected).

SoFi charges a $ 1,495 loan repayment fee, which is what you pay for the SoFi service to bring your mortgage. Most mortgage lenders will pay some lender commissions, such as a loan repayment fee, as part of their closing costs, regardless of the lender.

If you have previously taken out a personal or student loan from SoFi or have a minimum balance of $ 50,000 in your SoFi Invest account, you may be able to receive $ 500 in your first SoFi mortgage loan. This means that you will only pay $ 995.

SoFi Mortgage vs. Better.com

Better.com has a few more mortgage options than SoFi, including FHA mortgages and adjustable mortgages, also known as ARMs. SoFi mortgage options are limited to conventional fixed-rate mortgages, including mortgage-compliant mortgages.

In terms of mortgage options, SoFi has a slight advantage over Better.com: SoFi offers 30-year, 20-year, 15-year and 10-year mortgage terms, while Better.com offers only 30-year, 20-year and 10-year terms. . Since 15 year terms are relatively popular, borrowers looking for a shorter term may prefer SoFi over Better.com.

In terms of closing costs, Better.com’s lack of commission lending gives it an edge over SoFi’s $ 1,495 loan processing fee. Keep in mind, however, that lender charges are only a small part of your closing costs and you will have to pay the closing costs regardless of the lender you ultimately choose.

Because these lenders are so similar, it may ultimately depend on which lender has the particular mortgage you are looking for. If both lenders meet your needs, you may want to consider getting pre-approval with both SoFi and Better.com to see who offers the best price.

Mortgage Sofi vs. Mortgage Rocket

Rocket Mortgage has relatively strong mortgage offers compared to SoFi, offering FHA mortgages, VA mortgages and a few different ARM options. Thanks to government-backed mortgage options, Rocket Mortgage may be a better choice for borrowers looking for more affordability or easier qualifications – FHA mortgages, for example, typically allow for lower credit scores and up to 3 down payment. 5%.

Jumbo mortgage lenders may prefer SoFi’s slightly higher lending limits: SoFi will approve jumbo mortgages of up to $ 3 million, while Rocket Mortgage’s jumbo option is only $ 2.5 million.

How SoFi mortgages work

SoFi offers mortgages through a fully online lending experience. SoFi lends in most US but does not create mortgages in the following states:

  • Hawaii
  • Missouri
  • New Mexico
  • New York
  • West Virginia

SoFi offers conventional mortgages (both compliant and jumbo). You can also use SoFi to refinance your current mortgage, either by refinancing at an interest rate and duration or by refinancing with cash. This lender does not offer government-sponsored mortgages, such as the FHA, USDA, or VA mortgages, and only offers fixed-rate mortgages.

When it comes to your down payment, SoFi allows first time home buyers to pay just 3%. All other borrowers will have to pay at least 5% down payment.

When you get a mortgage loan from SoFi, you will pay a loan repayment fee as part of your closing costs. This charge is $ 1,495, although existing SoFi customers may be eligible for a $ 500 discount.

Some lenders allow you to apply with alternative credit data if you have no credit score or if your current rating is poor. Alternative credit data may include things like utility bills paid or rent payment history. SoFi does not accept alternative credit data, making it more suitable for borrowers with a traditional credit score of at least 620.

You can call, email or chat online with customer service from Monday to Friday from 6am. until 6 p.m. PT.

Is SoFi reliable?

SoFi currently has one Score A + with the Better Business Bureau. BBB ratings indicate a company’s level of honesty in advertising, transparency about its business practices, and effectiveness in responding to customer complaints.

However, SoFi has been the subject of legal action in recent years, including a complaint filed by the Federal Trade Commission alleging that SoFi was misleading consumers about how much they could save by refinancing their student loans. SoFi settle FTC charges in 2018.

More recently, SoFi has been accused of a group education filed in 2020 arguing that SoFi illegally denies DACA recipients equal access to their lending products. In 2021, SoFi Wealth a charge was settled by the Hellenic Capital Market Commission claiming that the company violated the


depositary

when it transferred assets of certain account holders to its own ETFs, which burdened many of these clients


capital gains

.

Frequently Asked Questions About SoFi Mortgages

Are SoFi mortgage rates competitive?

The interest rates quoted in SoFi are relatively low and competitive with the interest rates of other lenders.

However, your price will depend on a number of factors, including those related to your personal financial situation. Raising your credit score, lowering your debt-to-income ratio, and saving more money are all ways you can ensure you get a better interest rate.

Is SoFi a good mortgage lender?

If you are looking for a lender with a simple online procedure, SoFi may be right for you. SoFi also has good reviews for the Zillow lender profile, with many customers praising the easy process and excellent communication.

How Long Does a SoFi Mortgage Refinance Take?

According to a 2019 article on his website, SoFi refinancing usually closes in less than 30 days. Refinancing often takes up to a month to 45 days to complete, so SoFi may have slightly faster closing times than competitors.

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