Mortgage loans from the United States Department of Agriculture (USDA) and Federal Housing Administration (FHA) are generally easier to qualify for than a conventional mortgage. This makes them good options for first-time homebuyers and low- to moderate-income borrowers.

While both of these loans are backed by government agencies, there are several key differences between the two that you’ll need to consider before applying for one. For instance, USDA loans require you to live in a rural setting and meet your area’s income limit.

Here’s a closer look at each loan program so you can decide which one best fits your needs:

USDA vs. FHA eligibilityUSDA vs. FHA vs. conventionalUSDA pros and consFHA pros and cons

USDA vs. FHA eligibility

The USDA and FHA both offer home loans for single-family residences.

For an FHA loan, you’ll apply for a 203(b) basic home mortgage loan to purchase your primary residence.

However, there are two USDA home loan programs to choose from and the eligibility standards are slightly different:

USDA Guaranteed Loan: For low- to moderate-income households that a private lender issues but the USDA backs. You won’t have a borrowing limit or property restrictions for this loan.USDA Direct Loan: For low- and very-low-income borrowers that need additional underwriting. The USDA funds the loan and it has stricter income and property qualifications. Also, the borrowing limit is $285,000 in most counties.

Here are the basic requirements you’ll need to meet for each loan:

USDA loansFHA loansMin. down payment0%3.5% (with a credit score of 580 or above)
10% (with a credit score between 500 and 579)Min. credit score640500Income limitsUp to 115% of median household incomeNoneDebt-to-income ratio (DTI)Up to 29% of monthly housing costs
Up to 41% of monthly debt paymentsUp to 31% of monthly housing costs
Up to 43% of monthly debt paymentsLoan limitsNone for Guaranteed Loans
Up to $285,000 for most Direct Loans$356,362 for single-family residences in most areasLocation requirementsUSDA-eligible rural areas onlyNoneQualifying property typesSingle-family primary residences onlyPrimary residences between 1 and 4 unitsMortgage repayment terms30-year fixed30-year fixed, 15-year fixed, and adjustable-rateUpfront fee1% guarantee fee1.75% upfront mortgage insurance premiumAnnual fee0.35% annual feeUp to 0.85% annual mortgage insurance premium

Also See: Conventional Loan Requirements

USDA home loans have stricter income limits than FHA loans and also require you to live in an eligible rural area. Your home address and annual household income determine your borrower eligibility for USDA loans.

FHA borrower requirements, on the other hand, are more lenient as you can have a lower credit score. Multi-unit properties are also eligible. However, you’ll need to make a down payment with an FHA loan.

USDA vs. FHA vs. conventional

Many homebuyers will use a USDA, FHA, or conventional mortgage to purchase their home. Here’s a closer look at how these three loan types differ.

USDA loans

These loans are only available to rural homebuyers with low or moderate incomes. The income limits vary by region but are relatively strict. USDA loans don’t require a down payment but you’ll need a minimum credit score of 640 and have to pay an upfront 1% guarantee fee plus an annual fee equal to 0.35% of your loan amount.

FHA loans

Of the government mortgage programs, you may have the easiest time qualifying for an FHA loan. You’ll only need a 3.5% down payment when your credit score is at least 580.

With that said, you’ll most likely pay mortgage insurance for the life of the loan unless you can put down at least 10%. Doing this allows you to waive your remaining payments after 11 years.

Conventional loans

Conventional mortgages have the strictest credit requirements but they also offer competitive rates and can end up being cheaper in the long run. For example, you can avoid private mortgage insurance with a minimum 20% down payment.

Credible doesn’t offer FHA or USDA loans, but we can help you find a great rate on a conventional loan. Simply enter some basic financial information, and you’ll see several prequalified rates in minutes. After that, you can explore your loan options and find one that best fits your budget.

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USDA pros and cons

USDA loans offer several advantages for borrowers, but you’ll need to consider some of the drawbacks as well.

USDA pros

Here are some of the best reasons to consider a USDA loan:

No minimum down payment: Conventional loans and FHA loans both demand some form of down payment, but USDA loans have no such requirement.May not need cash reserves: Lenders may not require cash reserves to secure financing. However, including your qualifying balances might make it easier to qualify.No set maximum purchase price: USDA loans don’t have a borrowing limit. Instead, your maximum loan amount depends on your repayment ability.Lower mortgage insurance fees: Your upfront USDA guarantee fee is 1% of the loan amount and the annual fee is 0.35%. Both rates are lower than the FHA mortgage insurance premiums. Seller can pay closing costs: The seller can contribute up to 6% of the sales prices. You can also receive unlimited gift funds to reduce your loan amount.

USDA cons

These are the main disadvantages of this loan program:

Good credit required: You’ll need a minimum 640 credit score to be eligible for this loan, similar to conventional lenders. FHA lenders may only require a score of 580 or less.Geographic restrictions: You must live in a rural area to qualify for USDA financing. Thankfully, the definition is flexible and many suburban and bedroom communities can be eligible if the population is below a certain amount.Maximum income limits: For a USDA Guaranteed Loan, your household income cannot exceed 115% of your county’s median household income (MHI). Households with an income 80% below the MHI will need to apply for a USDA Direct Loan. Direct Loans can have stricter property and application requirements but, like Guaranteed Loans, they don’t require a down payment.Lifetime guarantee fee: All USDA loans require an upfront and annual guarantee fee for the life of the loan. Unlike FHA and conventional loans, making a qualifying down payment won’t have any effect on whether or not you’ll pay mortgage insurance.Single-family homes only: Single-family homes are the only eligible property type. This includes townhouses and condos, as long as you use the unit for your primary residence. Investment properties are ineligible.

FHA pros and cons

FHA loans are a good option, especially if you have low credit or a lot of debt. But they come with their own set of drawbacks too.

FHA pros

Some of the best reasons to apply for an FHA home loan include:

Lenient credit requirements: You can generally qualify for maximum FHA financing with a credit score of 580 versus a 640 score for a USDA loan. You might also be eligible with a credit score between 500 and 579 if you can make a 10% down payment.Higher debt-to-income ratios: Your back-end DTI — that is, your total monthly debt obligations — can be as high as 45% for FHA loans, but only 41% for USDA loans.Potentially lower interest rates: FHA interest rates can be lower than rates for USDA loans because you have the option to choose shorter repayment terms, including a 15-year fixed interest rate. The USDA only offers 30-year fixed loans, which naturally have higher rates.Multi-family units can qualify: Properties with up to four units can qualify for financing with an FHA loan when one unit is your primary residence. For example, purchasing a duplex with an FHA loan is allowed as long as you live in one half of the property. Like USDA loans, however, second homes and investment properties are ineligible.

FHA cons

Higher down payment requirements: Depending on your credit score, you’ll need to make a 3.5% or 10% down payment. USDA loans require no down payment.Higher mortgage insurance premiums: Your upfront and annual mortgage insurance premiums are higher than the USDA guarantee fee and annual fee.Difficult to cancel mortgage insurance: You’ll pay an annual mortgage insurance premium for the life of the loan unless your down payment is at least 10% — in which case, you’ll only pay mortgage insurance for the first 11 years.Mortgage limits: The maximum loan amount in 2021 is $356,362 for most counties. You can qualify for a higher limit if you live in a high-cost area.

Keep Reading: FHA vs. Conventional Loans: Which One’s Right for You?

The post USDA vs FHA Loans: Which Loan is Better? appeared first on Credible.

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In addition to the sorrow of losing a loved one, inheriting a house with a mortgage can be a stressful time, especially when there are several heirs. If you want to claim full possession of the house, you’ll need to buy out the other heirs. One way to do this is by refinancing the inherited property.

Here’s a closer look at how to refinance an inherited property to buy out heirs:

Refinancing an inherited property explainedHow to refinance an inherited property to buy out heirsOther optionsTips on refinancing inherited property

Refinancing an inherited property explained

The inheritance rules can be more flexible for surviving spouses and children. Mortgage loans have what’s called a “due-on-sale” clause that requires the loan to be paid in full if it transfers to a new owner. However, lenders are prohibited by federal law from enforcing this clause in the event of a borrower’s death.

When inheriting a property with a mortgage, there are two possible scenarios you’ll have to plan for:

Inheriting the estate as the lone heir: This is the most straightforward scenario. You can simply transfer the mortgage to your name and assume payments. Inheriting the estate with multiple heirs: You and the co-heirs will need to work with the executor of the estate and mortgage lender to decide what will happen to the property. If you want to own the property but don’t have the funds on hand to buy out each heir, you can opt for a cash-out refinance and use the proceeds from that to buy out the heirs.Tip: It’s essential to determine the estate value for each heir early during the refinancing process so you can estimate the total buyout cost. You and the heirs will also need to pay off any outstanding balance on the mortgage before you can receive the home.

Read: What Happens to Your Mortgage When You Die?

How to refinance an inherited property to buy out heirs

You can follow these steps to refinance your loved one’s property:

Review the estate plan: The deceased’s will should list the heirs entitled to a share of the property. The heirs and the estate executor can estimate how much each heir receives from the estate.Communicate with co-heirs: It’s important to discuss your mortgage transfer and refinance options with the other inheritors to avoid disputes. Determine the property value, expenses, and buyout amounts to estimate your borrowing needs.Transfer the mortgage deed: You’ll need to continue making mortgage payments during the transition to prevent foreclosure. However, it’s possible to add your name to the deed and assume the current payment terms. Contact the mortgage servicer for more info.Review due-on-sale clauses: Most mortgages have a due-on-sale clause requiring the remaining loan balance to be paid in full on transferred mortgages. The Garn-St. Germain Act of 1982 prohibits lenders from enforcing this clause when a borrower dies and a family member inherits the property.Calculate your refinancing terms: Prequalifying for a mortgage refinance will provide you with an estimate of your new monthly payment and payment schedule. If mortgage rates are lower than the current rate, refinancing can help you save money on interest.Complete the refinancing process: After finding the best lender, it’s time to apply for a refinance and secure a new rate and term. The lender will require a home appraisal to determine the value of the home (and, in turn, the available equity). Other closing costs will also apply.Pay each heir: If you get a cash-out refinance, you’ll receive a lump sum payment which you can use to pay the remaining heirs. As the refinanced mortgage is in your name, you’ll be responsible for making all mortgage payments going forward.

If you’re considering a cash-out refinance, be sure to look at as many lenders as possible. Credible makes finding a great deal easy — you can compare options from our partner lenders and see prequalified rates in as little as three minutes.

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Other options

Refinancing may not be the best option if you cannot find favorable terms or raise enough funds to buy out your co-heirs.

1. Rent or sell the property

Renting or selling the property can be the best option when your family cannot agree on a settlement amount or the court requires the estate to sell the home.

You may also have to sell the inherited property if it has a reverse mortgage as there may be insufficient equity to refinance or buy out the heirs.

Tip: If you cannot afford to refinance right now, turning the house into a rental property can help you continue to pay the mortgage and build equity. You can always decide to refinance or sell later when your circumstances improve.

2. Assume the mortgage

You might be able to assume the current mortgage payments by meeting the lender’s minimum standards. This can be the smarter option if the current loan terms are better than your refinancing options.

If you’re a co-borrower or cosigner, assuming the mortgage requires minimal effort as you are already on the mortgage and responsible for payments. The guidelines, however, can be different for conventional and government-backed mortgages.

3. Request loan modification

After adding your name to an inherited home loan, you’re considered a “successor in interest,” which essentially means you have an ownership stake in the property but you aren’t required to repay the loan. If the current loan terms are difficult to afford, you can request a loan modification.

A loan modification allows you to permanently change the terms of your mortgage. Your mortgage modification might involve:

Extending the repayment termReducing the interest rateSwitching to a fixed interest rate

Federal guidelines don’t require the lender or servicer to determine your ability to repay the mortgage before you can take it over and modify the terms. As a result, a loan modification can be easier to qualify for than a mortgage refinance.

4. Use a home equity line of credit (HELOC)

If the remaining mortgage balance on the inherited property is small — and assuming you own a home with equity — you can use a home equity line of credit to pay off the mortgage and other heirs.

A HELOC generally has lower closing costs than a cash-out refinance (and some lenders may even waive these costs), making it a good choice if you’re limited on cash. HELOCs are also more flexible than cash-out refinances in that you can borrow any amount (up to your limit) at any time — and you’re not charged interest for any unused funds.

Downsides of a HELOC to consider: Some drawbacks to this option are that HELOCs tend to come with an adjustable interest rate and a shorter repayment period. You’ll also be responsible for two loans instead of just one.

5. Inherit a house free and clear

Depending on the estate plan instructions, you might be able to inherit the property free and clear — that is, without any debts or liens attached to the home. In this situation, the estate uses liquid assets — like investments or cash — to pay off the mortgage.

If any balance remains, you have the ability to pursue refinancing or make a lump sum payment from your savings.

6. Consider hard money loans

Hard money loans from private lenders can be easier to qualify for than traditional mortgage refinancing and often have a quicker closing process. But, unfortunately, these loans typically have short repayment terms and come with much higher interest rates.

If you need to pay the heirs fast and can’t qualify for a home equity loan or cash-out refinance, you might consider this loan. Many hard money loans can close in just a few business days.

Important: Hard money loan interest rates can range from 7% to 15%, and maybe even higher depending on the lender. While they are a viable option if you’re in a pinch, make sure to consider other, less-riskier options first.

7. Pursue foreclosure

Foreclosure might be the least desirable option. With foreclosure, you’ll lose possession of the house and cannot tap the home equity.

Current laws don’t require survivors to continue making mortgage payments unless they are a co-borrower or cosigner on the mortgage.

If neither you or another heir wants to take over the mortgage payments, the mortgage servicer can pursue foreclosure without damaging your finances.

Good to know: A court may also order foreclosure if the estate plan doesn’t detail how to pass on the property or the heirs cannot reach a distribution agreement.

Tips on refinancing inherited property

These suggestions can make the estate settlement and refinance process go more smoothly:

Identify co-borrowers and cosigners: Co-borrowers and cosigners are automatically responsible for making payments. It can be easier to inherit the property if you already have one of these designations when the estate plan instructions are unclear about how to liquidate a property.Determine who pays the refinancing costs: Unfortunately, closing costs can reduce the available equity or require out-of-pocket payment. You must decide if you’ll pay all the costs or split them between the other heirs.Try to reduce the mortgage balance: Look for ways to reduce the mortgage principal so you won’t have to refinance as much. One option is to sell off the estate’s liquid assets.Compare lenders: Getting quotes from several mortgage refinance lenders can help you find favorable loan terms and also minimize your closing costs.Determine how to use the home equity: Calculate the percentage each heir will receive from the cash-out refinance payment in advance.Estimate inheritance taxes: Federal and state inheritance taxes may apply for any inheritance you receive. There can be exemptions for surviving spouses and children. A tax professional can provide additional guidance. Hire an estate lawyer: It can be difficult to probate an estate with outstanding debt. An estate lawyer can help you settle disputes between heirs, advise you on taxes, and navigate you through the refinancing process.

The post How to Refinance an Inherited Property to Buy Out Heirs appeared first on Credible.

Buying a fixer-upper home instead of a turnkey property can help you save money — as long as you have the time and budget to complete the necessary repairs. However, depending on the property condition, you might struggle to qualify for a traditional home loan.

Thankfully, you can apply for an FHA 203(k) loan. This type of mortgage rehabilitation loan is easier to qualify for than a conventional home loan and can potentially help you transform your distressed property into one of the best lots in the neighborhood.

Here’s what you need to know about FHA 203(k) loans:

What is a 203(k) loan?How does a 203(k) loan work?203(k) loan types203(k) loan uses203(k) loan requirements203(k) loan process203(k) loan pros and cons

What is a 203(k) loan?

There are several FHA home loan programs available to you. Most single-family homes requiring minimal repairs are eligible for 203(b) loans — the most common FHA loan.

But when a house needs extensive work for health, safety, and/or security reasons, you may need to apply for a 203(k) mortgage instead. Also known as a Section 203(k) loan, this rehab loan lets you buy the property as-is and use funds from the loan to complete the necessary repairs. You can also refinance your existing mortgage to perform structural and cosmetic repairs to your current home.

While Credible doesn’t offer 203(k) loans, our streamlined process makes comparing rates for conventional loans easy. It only takes a few minutes to see prequalified rates and generate a streamlined pre-approval letter using our free online tools.

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How does a 203(k) loan work?

You can purchase or refinance a home that’s at least a year old with an FHA 203(k) rehab loan. Primary residences requiring structural repairs and minor improvements are eligible for financing with a fixed or adjustable interest rate.

A Section 203(k) loan can be an excellent option as you only need to apply for one loan to secure the property and finance repairs with lenient borrower requirements.

While 203(k) loan requirements are typically more lenient than other home loans, the application process can be more tedious. For example, the lender requires a list of specific repairs, a cost estimate, and hiring a licensed contractor before you can close and make an initial draw.

Good to know: Only repairs or renovations that add value to the property will qualify. Certain luxury items like swimming pools and barbecue pits aren’t allowed. And while you may not have to occupy the home immediately, you’ll only have six months to complete the proposed projects.

203(k) loan types

There are two different 203(k) renovation loan options. Your estimated repair costs and the types of repairs determine which loan to apply for.

Limited 203(k) loan

A limited 203(k) loan — formerly known as a streamline 203(k) — allows you to borrow up to $35,000 for repairs or improvements. These loans are often better suited for cosmetic or non-structural repairs like a kitchen remodel or new flooring. Essentially, you’re performing the repairs that the seller didn’t do, allowing you to buy the house at a potential discount.

Here are some of the features of this loan type:

Cosmetic repairs only: Most minor remodels and non-structural repairs are eligible but an approved contractor must finish the work within six months. Contingency reserve: While you can borrow up to $35,000 for repairs, the lender may require a 20% contingency reserve — essentially, funds that are set aside to cover any cost overruns. For example, you might borrow $35,000 for repairs but the lender might withhold up to 20% (in this case, $7,000) in a reserve. They’re recommended, but not required, for limited 203(k) loans.Homebuyers and homeowners can apply: This loan is available to buyers and existing homeowners. However, you cannot refinance an active 203(k) loan.Self-made work plan: You may not have to work with a 203(k) consultant to draft a work plan for any repairs and improvements. However, your mortgage lender must approve the plan and the contractors you hire.

Standard 203(k) loan

If your home requires major structural repairs to get it into live-in condition, the standard 203(k) loan is a better option. This loan can also be a great alternative to construction loans when you retain the original foundation but need to rebuild or modify the existing structure.

The main features of this loan include:

Minimum $5,000 in improvements: You’ll only need to complete at least $5,000 in eligible improvements to qualify for a standard 203(k) loan.Contingency reserve: Lenders require a contingency reserve of up to 20% of the amount you borrow on all standard 203(k) loans.Complete major repairs: You can use this loan for significant repairs or remodeling as long as the original foundation exists. For example, you could rebuild the original structure or convert a single-family home into a multi-family property.Work with a 203(k) consultant: An FHA-approved 203(k) consultant must create your work plan and cost estimates. Qualified borrowers that perform their own work may be able to waive this requirement but cannot receive payment for the labor.More eligible repairs and improvements: Some repairs and improvements that aren’t eligible for funding with a limited 203(k) loan are eligible with a standard 203(k) loan. These include landscaping, structural rehabilitation, and installing storm shelter additions.

203(k) loan uses

You can use a 203(k) loan for many non-luxury repairs and improvements. Here are some ways to boost the value of your property using either 203(k) loan:

Heat and air conditioning systemsPlumbingWell or septic systemRoofingEnergy conservation improvementsSmoke detectorsExterior decks, patios, and porchesFencesWalkways and drivewaysKeep in mind: Your lender may only authorize repairs that increase the as-is property value by the same amount as the amount you spend.

203(k) loan requirements

Here are some of the FHA requirements you’ll need to meet:

Credit score: You’ll need a credit score of at least 500 to apply. However, 203(k) loan lenders may require a score above 600.Down payment: Your down payment is 10% with a credit score between 500 and 579. But you’ll only need to make a 3.5% down payment with a score of 580 or higher. Mortgage insurance premiums: You’ll pay an upfront mortgage insurance premium of 1.75% on the purchase price and repair funds. This loan also has an annual premium for the life of the loan. You can cancel the premium after 11 years if your initial down payment is 10% or higher. Employment history: You may need to provide proof of employment for the last two years. Your two most recent tax returns may also qualify. Traditional W-2 or self-employment income can qualify with a consistent work history.Debt-to-income ratio (DTI): Your maximum debt-to-income ratio is 43% in most instances. The DTI can be as high as 50% when you have qualifying income and cash reserves.Loan limits: You can borrow up to the nationwide mortgage limit or 110% of the estimated property value after improvements, whichever is less. In 2021, the mortgage limit is $356,362 in most counties for a single-family home and $822,375 in higher-cost areas.Primary residences only: 203(k) loans are only for primary residences. You must intend to live in the house for at least one year after the closing date.Must be an existing property: Your home must be at least a year old. The home can be a single-family home with one to four units, a condominium, or a manufactured house if the original foundation remains undisturbed.Closing costs: You’ll have to pay several fees including origination, appraisal, 203(k) consultant, and contractor charges.

203(k) loan process

Here is a look at how to apply for a 203(k) loan:

Apply with a 203(k) lender: Compare pre-approval rates from several mortgage lenders offering 203(k) loans. The lender can help you determine if a standard or limited 203(k) loan is better. Gather your documents: After identifying a property, apply for financing by submitting your personal, employment, and property details.Home appraisal: Your lender may require an initial inspection to determine the current property value and amount you may borrow for repairs. A 203(k) consultant can identify the necessary work items and total cost estimate.Hire a contractor: Unless you’re a professional contractor, you’ll need to hire a licensed general or specialized contractor before the loan closing date to complete the repairs. Using a contractor with previous 203(k) experience can prevent delays.Close on the loan: After hiring a qualified contractor, you can close on the loan to purchase the property and draw the initial repair funds. You’ll need to pay the closing costs, down payment, and upfront mortgage insurance premium.Complete the repairs: You have six months to complete the necessary repairs with a 203(k) loan. The work must start within 30 days of the closing date and the lender requires routine progress updates.Borrower’s letter of completion: You’ll provide the lender with a signed letter of completion stating all necessary repairs are complete to your satisfaction. Any unused funds from your contingency reserve will be applied to your loan principal.Occupy the house: You might be unable to occupy the dwelling until the necessary repairs are complete. After gaining a certificate of occupancy, you can move into your home to finalize the loan process.

203(k) loan pros and cons

These are the advantages and disadvantages of an FHA 203(k) rehab loan:

Pros

Most repairs qualify: Many minor and major repairs and improvements are eligible and can increase your property value quickly. Flexible borrower requirements: This loan type typically requires a lower credit score and down payment than conventional mortgages and construction loans. You can also apply for a 203(k) purchase or 203(k) refinance loan.Flexible borrowing limits: You can borrow up to your area’s borrowing limit or 110% of the after-repair property value.Lenient property requirements: While you must make repairs, 203(k) loans accept properties that may not pass the appraisal process for a conventional mortgage. Buying a fixer-upper at a low price can give you a tidy sum to spend on repairs and may end up being cheaper than purchasing a turnkey property.

Cons

Short repair window: You only have six months to complete the required repairs. Lenders may grant an extension for extreme circumstances. Houses with excessive damage may not qualify despite selling at a bargain price.Must hire a contractor: You’ll need to use a professional contractor to complete the work. Standard 203(k) loans also require hiring a consultant during the application process to develop a work plan. This oversight can complicate the purchase process. No investment properties: This program is strictly for primary residences that you plan on living in for at least one year. Rental homes and fix-and-flips don’t qualify.Mortgage insurance premiums: Like other FHA loans, you’ll have to pay mortgage insurance, possibly for the life of the loan. A 1.75% upfront mortgage insurance premium (UFMIP) is due at closing and an annual mortgage insurance premium (MIP) not exceeding 0.85% also applies.

The post FHA 203(k) Loan: What It Is, How it Works, and More appeared first on Credible.

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While the average student loan debt for college students is $39,351, some students might end up leaving school with $70,000 or more in student loans.

Paying off this amount in student loans can feel overwhelming. For example, if you had $70,000 in federal student loans and made payments under the standard 10-year repayment plan with a 6.22% interest rate, you’d end up with a monthly payment of $785 and a total repayment cost of $94,188.

Thankfully, there are several strategies that could help you more easily manage $70,000 in student loans.

Here’s how to pay off $70,000 in student loans:

Refinance your student loansConsider using a cosigner when refinancingExplore income-driven repayment plansPursue loan forgiveness for federal student loansAdopt the debt avalanche or debt snowball method

1. Refinance your student loans

Student loan refinancing is the process of paying off your old loans with a new loan. Depending on your credit, you might get a lower interest rate through refinancing, which could save you money on interest and even potentially help you pay off your loans faster.

Or you could opt to extend your repayment term to reduce your monthly payments and lessen the strain on your budget — though keep in mind that this means you’ll pay more in interest over time.

Keep in mind: You can refinance both federal and private loans. However, refinancing your federal student loans will cost you access to federal benefits and protections — such as income-driven repayment plans and student loan forgiveness programs.

If you decide to refinance your student loans, be sure to consider as many lenders as possible so you can find the right loan for your situation. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in just two minutes.

LenderFixed rates from (APR)Variable rates from (APR)Loan terms (years)Loan amounts

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Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

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4.54%+N/A10, 15, 20$7,500 up to up to $200,000
(larger balances require special approval)Fixed APR:
4.54%+Variable APR:
N/AMin. credit score:
Does not discloseLoan amount:
$7,500 up to $500,000Loan terms (years):
10, 15, 20Max. undergraduate loan balance:
$250,000 – $500,000Time to fund:
4 monthsRepayment options:
Immediate repayment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Must be a resident of KentuckyCustomer service:
PhoneSoft credit check:
NoCosigner release:
After 36 monthsLoan servicer:
Kentucky Higher Education Student Loan CorporationMax. graduate loan balance:
$250,000 – $500,000Credible Review:
Advantage Education Loan reviewOffers Parent PLUS Refinancing :
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

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2.15%+
1.87%+5, 7, 10, 15, 20$10,000 up to $250,000
(depending on degree)Fixed APR:
2.15%+Variable APR:
N/AMin. credit score:
Does not discloseLoan amount:
$10,000 to $400,000Loan terms (years):
5, 7, 10, 15, 20Repayment options:
Military deferment, forbearanceFees:
Late feeDiscounts:
AutopayEligibility:
Must have a credit score of at least 720, a minimum income of $60,000, and must be a resident of TexasCustomer service:
Email, phoneSoft credit check:
Does not discloseCosigner release:
NoLoan servicer:
Firstmark ServicesMax. Undergraduate Loan Balance:
$100,000 – $149,000Max. Graduate Loan Balance:
$200,000 – $400,000Offers Parent PLUS Refinancing:
Does not disclose

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Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.44%+1
2.24%+15, 7, 10, 15, 20$10,000 to $500,000
(depending on degree and loan type)Fixed APR:
2.44%+1Variable APR:
2.24%+1Min. credit score:
Does not discloseLoan amount:
$10,000 to $750,000Loan terms (years):
5, 7, 10, 15, 20Repayment options:
Immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
Autopay, loyaltyEligibility:
Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 24 to 36 monthsLoan servicer:
Firstmark ServicesMax. Undergraduate Loan Balance:
$100,000 to $149,000Max. Graduate Loan Balance:
Less than $150,000Offers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

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2.99%+2
2.94%+25, 7, 10, 12, 15, 20$5,000 to $300,000
(depending on degree type)Fixed APR:
2.99%+2Variable APR:
2.94%+2Min. credit score:
Does not discloseLoan amount:
$5,000 to $300,000Loan terms (years):
5, 7, 10, 12, 15, 20Repayment options:
Military deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
All states except for MECustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 24 to 36 monthsLoan servicer:
College Ave Servicing LLCMax. Undergraduate Loan Balance:
$100,000 to $149,000Max. Graduate Loan Balance:
Less than $300,000Offers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.16%+
2.11%+5, 7, 10, 15, 20$5,000 to $500,000Fixed rate:
2.44%+1Variable rate:
2.24%+1Min. credit score:
680Loan amount:
$5,000 to $500,000Cosigner release:
YesLoan terms (years):
5, 7, 10, 15, 20Repayment options:
Academic deferment, forbearance, loans discharged upon death or disabilityFees:
Late feeDiscounts:
AutopayEligibility:
Available in all states, except MS and NVCustomer service:
Email, phone, chatSoft credit check:
YesLoan servicer:
FirstMarkMax. undergraduate loan balance:
$500,000Max. graduate loan balance:
$500,000Offers Parent PLUS refinancing:
YesMin. income:
$65,000 (for 15- and 20-year products)

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
1.8%+5
1.8%+55, 10, 15, 20$1,000 to $250,000Fixed APR:
1.8%+5Variable APR:
1.8%+5Min. credit score:
700Loan amount:
$7,500 to $200,000Loan terms (years):
5, 10, 15, 20Repayment options:
Immediate repayment, academic deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Must be a U.S. citizen or permanent resident and submit two personal referencesCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
After 36 monthsLoan servicer:
Granite State Management & Resources (GSM&R)Max. Undergraduate Loan Balance:
$150,000 to $249,000Max. Graduate Loan Balance:
$150,000 to $199,000Offers Parent PLUS Refinancing :
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.47%+3
2.39%+35, 7, 10, 12, 15, 20Minimum of $15,000Fixed APR:
2.47%+3Variable APR:
2.39%+3Min. credit score:
680Loan amount:
No maximumLoan terms (years):
5, 7, 10, 12, 15, 20Repayment options:
ForbearanceFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen or permanent resident, have at least $15,000 in student loan debt, and have a bachelor’s degree or higher from an approved schoolCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
NoLoan servicer:
MohelaMax. Undergraduate Loan Balance:
No maximumMax. Graduate Loan Balance:
No maximumOffers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
3.47%+4
2.44%+45, 10, 15, 20$5,000 – $250,000Fixed APR:
3.47%+4Variable APR:
2.44%+4Min. credit score:
670Loan amount:
$5,000 to $250,000Loan terms (years):
5, 10, 15, 20Repayment options:
Academic deferment, military deferment, forbearanceFees:
Late feeDiscounts:
AutopayEligibility:
Must be U.S. citizen or permanent residentCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
YesMax undergraduate loan balance:
$250,000Max graduate loan balance:
$250,000Offers Parent PLUS refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.24%+7N/A5, 7, 10, 12, 15, 20Up to $300,000Fixed APR:
2.24%+7Variable APR:
N/AMin. credit score:
670Loan amount:
Up to $300,000Loan terms (years):
5, 7, 10, 15, 20Time to fund:
Usually one business dayRepayment options:
Academic deferral, military deferral, forbearance, death/disability dischargeFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 statesCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
After 24 monthsMax. undergraduate loan balance:
$300,000Max. graduate balance:
$300,000Offers Parent PLUS loans:
YesMin. income:
None

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
3.05%+
3.05%+7, 10, 15$10,000 up to the total amount of qualified education debtFixed APR:
3.05%+Variable APR:
3.05%+Min. credit score:
670Loan amount:
$10,000 up to the total amountLoan terms (years):
7, 10, 15Repayment options:
Military deferment, loans discharged upon death or disabilityFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen or permanent resident and have at least $10,000 in student loansCustomer service:
Email, phoneSoft credit check:
YesCosigner release:
NoLoan servicer:
AESMax. Undergraduate Loan Balance:
No maximumMax. Gradaute Loan Balance:
No maximumOffers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.89%+N/A5, 8, 12, 15$7,500 to $300,000Fixed APR:
2.89%+Variable APR:
N/AMin. credit score:
670Loan amount:
$7,500 to $300,000Loan terms (years):
5, 8, 12, 15Repayment options:
Does not discloseFees:
NoneDiscounts:
NoneEligibility:
Must be a U.S. citizen and have and at least $7,500 in student loansCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
After 12 monthsLoan servicer:
PenFedMax. Undergraduate Loan Balance:
$300,000Max. Graduate Loan Balance:
$300,000Offers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.69%+N/A5, 10, 15$7,500 up to $250,000
(depending on highest degree earned)Fixed APR:
2.69%+Variable APR:
N/AMin. credit score:
680Loan amount:
$7,500 to $250,000Loan terms (years):
5, 10, 15Repayment options:
Academic deferment, military deferment, forbearance, loans discharged upon death or disabilityFees:
NoneDiscounts:
AutopayEligibility:
Available in all 50 states; must also have at least $7,500 in student loans and a minimum income of $40,000Customer service:
Email, phoneSoft credit check:
Does not discloseCosigner release:
NoLoan servicer:
Rhode Island Student Loan AuthorityMax. Undergraduate Loan Balance:
$150,000 – $249,000Max. Graduate Loan Balance:
$200,000 – $249,000Offers Parent PLUS Refinancing:
Yes

Credible Rating>


Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details>
2.49%+6
1.99%+65, 7, 10, 15, 20$5,000 up to the full balance of your qualified education loansFixed APR:
2.49%+6Variable APR:
1.99%+6Min. credit score:
Does not discloseLoan amount:
$5,000 up to the full balanceLoan terms (years):
5, 7, 10, 15, 20Repayment options:
Academic deferment, military defermentFees:
NoneDiscounts:
Autopay, loyaltyEligibility:
Available in all 50 statesCustomer service:
Email, phone, chatSoft credit check:
YesCosigner release:
NoMax undergraduate loan balance:
No maximumMax graduate loan balance:
No maximumOffers Parent PLUS refinancing:
YesCompare personalized rates from multiple lenders without affecting your credit score. 100% free!

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2. Consider using a cosigner when refinancing

You’ll typically need good to excellent credit to get approved for refinancing — a good credit score is usually considered to be 700 or higher. There are also several lenders that offer refinancing for bad credit, but these loans tend to come with higher rates compared to good credit loans.

If you have poor or fair credit and are struggling to get approved, consider applying with a cosigner. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.

Tip: A cosigner can be anyone with good credit — such as a parent, another relative, or a trusted friend — who is willing to share responsibility for the loan. Just keep in mind that this means they’ll be on the hook if you can’t make your payments.

Learn More: Best Student Refinance Companies: Reviewed and Rated

3. Explore income-driven repayment plans

If you have federal student loans, signing up for an income-driven repayment (IDR) plan could be a good idea. On an IDR plan, your payments are based on your income — typically 10% to 20% of your discretionary income.

Additionally, you could have any remaining balance after 20 to 25 years, depending on the plan.

Tip: Signing up for an IDR plan might significantly reduce your monthly payments. However, keep in mind that by extending your repayment term, you could end up paying much more in interest over time.

Here’s how the four main IDR plans compare to a few other federal repayment plan options:

Repayment planWho’s eligible?Monthly paymentRepayment termsEligible for loan forgiveness?Standard repayment planAny borrower with Direct or FFEL LoansAmount when payments are spread equally over 10 years (usually $50 minimum) 10 yearsNoGraduated repayment planAny borrower with Direct or FFEL LoansDepends on loan amount
(payments start low and increase every 2 years)10 yearsNoExtended repayment planAny borrower with more than $30,000 in Direct or FFEL LoansFixed: Spread evenly over up to 25 years

Graduated: Depends on loan amount (start low and increase every 2 years)Up to 25 yearsNoIncome-Based Repayment (IBR)Borrowers with partial financial hardship

(no Parent PLUS Loans)For borrowers who took out loans after July 1, 2014: 10% of discretionary income
(never more than 10-year plan)

For borrowers who took out loans before July 1, 2014: 15% of discretionary income
(never more than 10-year plan)For borrowers who took out loans after July 1, 2014: 20 years

For borrowers who took out loans before July 1, 2014: 25 yearsYesPay As You Earn (PAYE)Must have partial financial hardshipMust have borrowed on or after Oct. 1, 200710% of discretionary income
(never more than 10-year plan)20 yearsYesRevised Pay As You Earn (REPAYE)Any borrower
(no Parent PLUS Loans)10% of discretionary income
(no cap)20 years
(25 years if repaying grad school debt)YesIncome Contingent Repayment (ICR)Any borrower
(Parent PLUS Loans must be consolidated)20% of discretionary income
(or income-adjusted payment on 12-year plan)25 yearsYes

Check Out: PAYE vs. REPAYE: Which Repayment Plan Is Right for You?

4. Pursue loan forgiveness for federal student loans

There are several student loan forgiveness programs available to federal student loan borrowers. Most of these require that you work in a certain field and make qualifying payments for a specific amount of time.

For example: If you are employed by a nonprofit or government agency and make qualifying payments for 10 years, you might qualify for Public Service Loan Forgiveness (PSLF).

Or if you’re a teacher who works at a low-income school, you could be eligible for the Teacher Loan Forgiveness Program.

Some other occupations that might qualify for a forgiveness program include:

DentistsDoctorsLawyers NursesPharmacistsTeachersKeep in mind: Unfortunately, private student loan forgiveness doesn’t exist. However, there are other options that could help you more easily pay off private loans, such as refinancing.

Learn More: How Often Can You Refinance Student Loans?

5. Adopt the debt avalanche or debt snowball method

If you have multiple student loans and aren’t eligible for refinancing or forgiveness, you might just need to concentrate on paying off your loans as quickly as possible. Here are two strategies that could help:

Debt avalanche method

With the debt avalanche method, you’ll focus on paying off your loan with the highest interest rate first while continuing to make the minimum payments on your other loans.

You’ll then move on to the loan with the next-highest interest rate — continuing until all of your loans are paid off.

Tip: The debt avalanche method can save you money on interest charges — but it can take a while to see any results. If you’re more motivated by small wins, the debt snowball method might be a better fit for you.

Debt snowball method

With the debt snowball method, you’ll focus on paying off your smallest loan first while making the minimum payments on your other loans.

After you repay this loan, you’ll move on to the next-smallest loan — continuing until all of your loans have been paid off.

Tip: The debt snowball method can be particularly motivating since it typically offers quick results. But if you would rather save money on interest and don’t mind waiting to see your savings, the debt avalanche method could be a better choice.

Check Out: Private Student Loan Consolidation

Frequently asked questions

Here are the answers to a few commonly asked questions about paying off $70,000 in student loans:

How long does it take to pay off $70k student loans?

This will depend on the type of student loans you have and what repayment plan you choose.

Federal student loans: You could have 10 to 25 years to repay federal loans, depending on the repayment plan you choose. You could also opt to consolidate your loans into a Direct Consolidation Loan and extend your repayment term up to 30 years.Private student loans: Terms on private loans typically range from five to 20 years, depending on the lender.

Can I file for bankruptcy to eliminate my student loan debt?

Yes, you can file bankruptcy for student loan debt. However, it can be difficult to actually have your loans discharged. If you file for Chapter 7 or Chapter 13 bankruptcy, you’ll have to prove to the court that paying them would cause an undue hardship for you and your dependents, which generally means that you wouldn’t be able to afford basic needs if you continue to repay the debt.

If the court decides in your favor, your loans could be:

Fully dischargedPartially discharged with you responsible for the remainder of the balanceAdjusted with different terms to make repayment easier (such as a lower interest rate)Tip: Filing for bankruptcy will severely damage your credit and should be treated as a last resort. If you’re thinking about filing for bankruptcy, it’s a good idea to consult with an attorney to make sure it’s the best choice for your financial situation.

re student loans forgiven after 20 years?

This depends on the type of student loans you have.

If you have federal student loans, you could be eligible for forgiveness after 20 to 25 years on an IDR plan. There are also other forgiveness programs that offer forgiveness sooner — for example, you could have your loans forgiven after 10 years if you qualify for PSLF.If you have private student loans, you aren’t eligible for forgiveness. In this case, you might consider refinancing your loans for a lower interest rate to potentially reduce your repayment time.

Do children inherit student debt?

Generally no. Here’s what you can typically expect:

Federal student loans are discharged upon the death of the borrower. If you have a Parent PLUS Loan, it will be discharged if you or the student who benefitted from it passes away.Private student loans are often discharged similarly to federal loans. However, keep in mind that this is at the discretion of the lender. If the lender doesn’t offer a death discharge option, then your private loans will be considered part of your estate and will be paid off by your assets.

The post How to Pay Off $70,000 in Student Loans appeared first on Credible.

A fresh coat of paint can increase your curb appeal, make your home look newer, and potentially lead to higher offers when you sell. But you’ll need to estimate the cost and make sure it fits into your budget. Several factors, like square footage and the cost of supplies and labor, will impact the final total.

Here’s how much you can expect a freshly painted house to cost:

How much does it cost to paint a house?How to calculate the cost to paint a houseCost to paint house exteriorsFactors that affect the cost to paint a house

How much does it cost to paint a house?

Homeowners spend $1,901 on average painting a home’s interior and $3,045 on the exterior, according to HomeAdvisor. But several factors — including the quality of the paint, whether you hire professionals, and the home’s square footage — affect that estimate.

Here’s a breakdown of what the painting costs might look like for a 2,300-square-foot home, the median size of a new house sold in 2020:

InteriorExteriorAverage cost to paint$1,901$3,045Average range for a 2,300-square-foot home$1,900 to $7,800$1,100 to $7,700Average price per square foot$2 to $6$0.50 to $3.5Sources: HomeAdvisor’s Paint a Home Interior guide and Paint a Home Exterior guide

Don’t Miss: 16 Fast Weekend Projects to Boost Your Home’s Curb Appeal

How to calculate the cost to paint a house

You can always get a quote from a professional, or you can take the following steps to figure out how much it costs to paint a house yourself:

Find the finished area. For interior jobs, measure the height of each room you want to paint and multiply by the width. Do the same for exterior walls if you’re painting the outside, as they measure differently. You might be able to find the exterior perimeter on your mortgage closing papers.Find the paintable area. Measure the total square footage of the windows and doors, and subtract that area from the total finished area. A standard door measures 21 square feet, while a standard window measures 12 square feet.Find the coverage area of the paint. A gallon of paint covers about 400 square feet on average, though you may need more for rough exterior siding. Exteriors usually need two coats of paint, and interiors may need two or three coats if you’re making a dramatic color change. Choose your paint. The cost of a gallon of paint depends on the brand, color, sheen, regional pricing, and whether you’re using interior or exterior paint. Do the math. Divide the paintable area by the coverage of a gallon of paint to find out how many gallons of paint you need. Then, multiply the number of gallons by the price of the gallon to complete your estimate. Use this formula. To find the number of gallons you need, use this formula: square feet of paintable area / square feet of paint coverage area = gallons of paint x 2 = total gallons of paint needed (rounded up to the nearest gallon)

Example calculation

Let’s say you’re painting three rooms — two bedrooms and a living room:

The main bedroom is 200 square feetThe second bedroom is 150 square feetThe living room is 300 square feet

This comes out to a total finished area of 650 square feet. There are also three doors and five windows within those three rooms, for a total area of 123 square feet, giving you a paintable area of 527 square feet. You decide to use paint that costs $50 per gallon.

Here’s how the calculations would break down:

The paintable area: 650 square feet – 123 square feet = 527 square feetThe number of gallons you need: 527 square feet / 400 square feet (the average area a gallon of paint covers) = 1.31 gallons of paint x 2 = 2.62 total gallons of paint neededThe cost of the paint: 3 gallons x $50 = $150

If you’re going the DIY route, then you’ll also need to calculate the cost of basic supplies. For an interior paint job, this might include paint rollers, paint trays, painter’s tape, a paint bucket, sandpaper, caulk, drop cloths, and a ladder.

Related: 15 Home Improvement Projects to Complete Before You List Your Home

Cost to paint house exteriors

The material of your home’s exterior will affect the type and amount of paint you use. You’ll also need to adjust the estimate if your exterior is made of more than one material, such as vinyl and brick.

On a home that measures 1,500 to 2,000 square feet, here’s how much it might cost to paint the exterior, based on what it’s made of:

MaterialAverage cost to paint the exteriorBrick$3,500 to $10,500Vinyl$600 to $3,500Stucco$1,400 to $6,500Concrete$500 to $2,000Metal/aluminum$400 to $3,500Wood$700 to $3,000Trim$1 to $3 per linear footSource: HomeAdvisor’s Paint a Home Exterior guide

Factors that affect the cost to paint a house

Every paint job is different, depending on factors like labor costs, materials and supplies, square footage, and the condition and location of your home.

Labor

When you’re painting a house, labor might represent as much as 75% to 85% of the entire bill, and many charge by area instead of hourly. Professionals that do charge hourly charge about $25 to $75 per hour to paint the exterior and $20 to $50 per hour for the interior.

Painters spend a lot of time preparing the surface, so this might be an area where you can negotiate with the painter to save money. First consider whether you have the time and energy to clean, sand, patch, and caulk the walls.

You also might need to agree to the painter’s terms. For instance, some professionals won’t guarantee the finished product if they’re not doing the prep work. When you’re gathering quotes, make sure the final estimate reflects the arrangement you’ve negotiated.

Tip: Depending on the price of labor and your experience level, you might even decide to skip hiring professionals altogether. Homeowners typically need about two to three weeks to paint an entire home, plus the cost of materials and supplies.

Paint

Paint is the next-biggest cost, at anywhere from $20 to $80 or more per gallon. Professionals often get a contractor discount that they may pass on to you. The cost of the paint depends on the brand, color, sheen, and regional pricing.

Good to know: Interior and exterior paints are not interchangeable, so make sure you don’t mix the two. Exterior paint is made to handle mildew and fading, while interior paint is stain-resistant and allows for cleaning.

While you might want to cut corners here, it’s a good idea to use the highest-quality paint that your budget allows. Using good paint could save you money by offering long-term durability and better coverage, which translates to fewer coats and fewer work hours.

With the exterior, you’ll also need to consider the texture of the siding. Some rough textures, like stucco and wood, require more paint because there’s more surface to cover compared to smooth siding. So stucco and brick might cost $1 to $2 more per square foot compared to wood and vinyl.

Materials

Professionals will often include supplies in their quote, but you’ll need to budget for them if you plan to DIY. Final costs will depend on the brand, quality, quantity, and whether you rent or buy the item.

SuppliesAverage costBrushes$5 to $90Caulk$2 to $8 per tubeDrop cloths$10 to $30 eachLadder$100 to $300Paint pans and buckets $2 to $10Painter’s tape$2 to $5 per rollPower washerVariesRollers and roller handles$15 to $30Sandpaper$3 to $15Scraper$5 to $30Sprayer and power rollers$100 to $2,000Source: HomeAdvisor’s Paint a Home Exterior guide

Location and climate

When you’re painting the exterior, the weather and climate affect the materials you can use, how often you’ll need to paint, and when you can paint.

Homes in areas that experience harsh winters will need paint that’s made to withstand the elements. On the flip side, homes in year-round sunny climates may need paint more regularly because direct sunlight causes paint to fade quicker.

Additionally, high humidity and extremely high or low temperatures can affect how the paint dries and may lead to cracking and peeling.

Check Out: The Cost to Refinance a Mortgage (and How to Pay Less)

Prep work

You or a professional will need to assess your home’s condition before preparing an estimate:

For the exterior: You may need to repair the siding materials, fill cracks and holes, and power wash the sides. You might also need to trim the landscaping and remove vines to prepare the space. For the interior: Walls will need to be cleaned, patched, and sanded. A professional can guarantee this is done quickly and correctly, but you can save costs by doing some of it yourself.

A cash-out refinance can help you fund your next major home improvement project. With Credible, you can compare loan options from all of our partner lenders and get prequalified refinance rates in just a few minutes.

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The post How Much Does It Cost to Paint a House? appeared first on Credible.