SoFi
Buying a home can be tough. The stress of dealing with loans and realtors as well as paying such a huge lump sum for down payment can really take a toll on your wallet. This home loan company, created by the online realty estate marketplace Zillow, specializes in making the home buying experience easier by lowering your down payment and simplifying the process. Let’s take a deeper look into what SoFi has to offer and see how it rates in comparison to other home loan companies.
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Services Offered
SoFi offers plenty of options when it comes to your home mortgage loan. This allows you to choose the right one for you based on your personal preferences and the current home buying market.
Customer Service: Available by phone or email every day of the week
What we like about it:
- Online process keeps staff low and operating costs down to offer better rates to customers
- Unique underwriting process goes beyond just numbers
- Member discount on all other loans
- Unemployment protection
- Referral program that pays up to $300 per referral
- Complimentary financial advisors for guidance
- Offer competitive rates and low down payments
- No hidden fees or prepayment penalties
- Easy application done in minutes
Mortgage Options
30 year Fixed- This is the most traditional type of home loan. It involves a fixed interest rate, guaranteed to never increase but you also can’t take advantage of any new low rates unless you refinance. Because it is for the duration of 30 years, you’ll be able to take advantage of lower monthly payments, but you will end up paying more interest and a higher lump sum in the end.
15 year Fixed- This type of loan is similar to the 30 year but you cut your payment time in half. This will increase your monthly payment but you will pay less interest and less for your home altogether.
7/1 ARM- This is a less traditional type of interest but it allows you to get a loan in a bad market but get better rates later. It is a 30 year mortgage where the first seven years are fixed rate but each year the rate adjusts to the current market rate.
5/1 ARM Interest Only- This is another type of loan that is non-traditional. The first five years are fixed and then the remaining adjust each year. For the first 10 years of this 30 year mortgage all you do is pay the interest. For the next 20 years you pay the principal and the interest. This is a good option for someone who is looking to buy and sell quickly.
Back to top ↑Mortgage Refinance Options
Traditional Refinance- This is for those who may have bought a home years ago and want to refinance to take advantage of newer lower rates.
Cash Out Refinance- You can take advantage of your home’s current value to get cash in your hand while refinancing your loan to take this into account. This can be helpful if you need to consolidate debt, make home renovations, or just need cash quick.
Student Loan Cash Out Refinance- This type of refinancing is for those who have high interest student loans. You can use the equity of your home to pay off your student loans and consolidate your debt at the same time.
Back to top ↑Ease of Use
Because everything is done online, the application process literally takes minutes. You also get the help of a professional loan officer and even a financial advisor if you have questions about the right loan for you.
SoFi has done all they can to streamline the process in a complicated industry. The three step process goes like this:
- Get prequalified through a 2 minute application.
- Decide which loan is right for you and apply for selected loan.
- Sign your paperwork and get your money in 30 days or less.
Price
SoFi does charge a lender fee that is dependent on the loan amount. You will also have to cover appraisal, credit check, title and closing costs. This is typical for any mortgage.
SoFi offers many calculators and tools to help you know how much you can expect to pay for your loan altogether and you can always talk directly to your loan specialist if you have any other questions.
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