Author: Chris Muller / Source: fivecentnickel.com
At some point in life, we all will likely need to borrow money. When that time comes, you’ll want to check out what SoFi has to offer. We’ll go through all the details in our SoFi review.
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We go through paths in life, don’t we?
Our first major step into adulting is going to high school (awkward). But then it’s off to college.
We’re so excited to finally move out of our mom and dad’s house that we don’t care how much we’re taking on in student loans.
Then we get through college and realize that we have six months before we have to start paying on our student loans. We never really think that sixth month is coming, until it actually does.
Then panic sets in.
By default, you’re making a payment on a 10-year loan, which often isn’t cheap.
As you grow in your career, you’ll make more money. You’ll need to invest that money if you want to retire.
Then maybe you want to buy a home.
All the while, you’re still paying down debt like student loans.
Does this life path sound familiar?
That’s because it’s becoming the norm for many Americans.
And what SoFi has done is design their business to match the phases we go through in life–whether it was intentional or not.
SoFi is an online company that offers student loan refinancing, mortgages, and career coaching, to name a few things.
In this article, I’ll review all that SoFi has to offer, so you can decide if it’s for you.
Ways to Borrow
There are a few ways to borrow money with SoFi–each with a different purpose. Let’s check them out.
Student Loan Refinancing
You can save thousands of dollars by refinancing your student loans with SoFi. According to their website, they are the leading student loan refinancing provider. Sofi is responsible for refinancing over $18 billion in student loans, serving over 250,000 members, and seeing a 98% recommendation rate by those members.
You can refinance your student loans with a fixed rate between 3.999% and 7.804% APR or a variable rate between 2.480% and 7.524% APR when you enroll in AutoPay. SoFi’s loans also come with no hidden fees and no prepayment penalties–so you can pay it off early with no repercussions if you want.
The process is pretty easy, too. Here’s what you do:
- Get pre-qualified online. The application takes a couple of minutes. You have to have at least a 650 credit score, and these offers will be a soft pull on your credit (so they won’t hurt your score).
- Pick a rate and term. In most cases, you’ll get at least a few options to choose from. From there, simply pick the rate and term that you like best.
- Upload documents and verify. After you pick a loan and apply, you’ll need to upload a few necessary documents and e-sign them.
- Get one low payment. After you’re approved, SoFi will pay off the balance with your other loan servicer and switch you to one low monthly payment with them.
Medical Resident Student Loan Refinancing
If you’re a medical, veterinary, or dental resident student, you can refinance your student loans with SoFi as well. This program is designed specifically for residents, as you’ll get a low monthly payment of just $100 for up to four years while you complete your residency. For anyone who’s either done a residency or known anyone who’s done one, you know it’s grueling and the last thing you want to focus on is your student loan payment.
In addition to the $100 monthly payment, interest does not compound (so you won’t pay interest on interest) while you’re doing your residency and making these lower payments– which is a really nice feature to help you get by financially during these tough four years. For these types of loans, SoFi offers fixed rates as low as 4.374% and variable rates as low as 2.605% when you enroll in AutoPay. Obviously, this will vary based on a number of factors, but these rates are super competitive.
The application process is the same as it is for regular student loans– so it’s quick and easy to get done online and you should have a decision in minutes.
Mortgages/Mortgage Refinancing
SoFi now offers mortgage loans and mortgage refinancing loans. For home buyers, there are a lot of reasons to love this product.
One of the biggest selling points is the ability to put only 10% down on loans up to $3 million–with no borrower-paid PMI required. There are also no origination fees. This alone can save you thousands of dollars over the life of the loan.
The loan process is done online and takes a few minutes. Like student loans, you enter your basic information and you’ll be presented with a few options to…
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