New York Community Bancorp, the parent of Flagstar Bank, said it’s still committed to the home loan business despite selling approximately $5 billion in warehouse mortgages to JPMorgan Chase Bank to improve its capital and liquidity position.
Following the transaction, Flagstar will exit the mortgage warehouse lending space. However, it will continue financing mortgage servicing rights (MSR). Inside Mortgage Finance (IMF) first reported on the topic and a Flagstar spokesperson confirmed.
On Tuesday, NYCB said it entered into a commitment letter with JPMorgan. The transaction is subject to due diligence, negotiation of definitive terms and other closing conditions. The sale is expected to close in the third quarter of 2024.
“The mortgage business remains an important business for the company and we will continue to provide our mortgage customers and partners the same great service that they have come to expect from Flagstar,” Joseph Otting, NYCB president and CEO, said in a statement.
JPMorgan was the leader in the mortgage warehouse space in the fourth quarter of 2023, with $20 billion in volume and a 20.8% market share, according to IMF estimates.
The bank was followed by Flagstar, with $11.8 billion in volume and a 12.3% market share, the IMF data shows. The top- five is rounded out by Merchants Bank ($6.7 billion; 7%), EverBank ($5.8 billion; 6%) and First Horizon ($5.5 billion; 5.7%).
Loans at mortgage warehouse lending, a source of liquidity to independent mortgage bankers (IMB), have good yields, short terms and are highly secured and collateralized.
But they are not immune to systemic industry shocks, including last year’s bank crisis. Following the tumult, warehouse lenders – such as Dallas-based Comerica Bank – have decided to exit the business.
NYCB, which acquired Flagstar Bank in December 2022, ended up rescuing Signature Bank in March 2023. However, it affected its capital and liquidity structures amid a challenging market condition.
In January 2024, the bank suffered a confidence crisis after reporting a net loss in the last quarter of 2023 due to a provision for loan losses of $552 million, mainly impacted by its exposure to commercial real estate loans.
Fitch and Moody’s downgraded NYCB’s debt ratings on March 1, as the company disclosed internal control deficiencies and a $2.4 billion goodwill impairment. On March 6, the company received $1 billion in equity investment, led by former U.S. Department of Treasury Secretary Steven Mnuchin’s private equity firm, Liberty Strategic Capital.
“Consistent with my guidance during our recent earnings call, we are moving forward quickly to implement our strategic plan, which focuses on improving our capital, liquidity and loan-to-deposit metrics,” Otting said in a statement.
NYCB expects the transaction with JPMorgan to add 65 basis points to its CET1 capital ratio to 10.8% as of March 31. As the proceeds will be reinvested in cash and securities, its share of total assets will improve to 24% from 20% at March 31. Loan-to-deposit ratio is expected to decline to 104% from 110% at the end of the first quarter.
Accrued interest represents the interest that accumulates in between payments on a financial product. Accrued interest can apply to both lending and investment products, ranging from home loans and credit cards to bonds or savings accounts.
Accrued interest is different from regular interest, and it’s an important concept to understand.
What Is Accrued Interest?
When you are investing and earning interest, you’ll probably encounter accrued interest. And in the opposite situation, if you borrow money and owe interest payments, you’ll also deal with accrued interest.
This type of interest accrues in between payments. For instance, if you have a credit card balance of $1,000, and you make a partial payment on the 30th of the month, the remaining balance and any new charges will begin to accrue interest. It will be due on the 30th of the following month.
Think of accrued interest as interest that is building up, bit by bit, until that payment is made. In the case of an investment like bonds, in which you’re essentially loaning money to an entity like the government or a company, the accrued interest is interest earned on the money you invested that is eventually paid to you. 💡 Quick Tip: Whether your check comes the first Wednesday of the month or every other Friday, if you sign up for direct deposit, you know when the money will hit your account. This is especially helpful for scheduling the payment of regular bills. No more guessing when you’ll have sufficient funds.
How Does Accrued Interest Work?
It’s possible to owe accrued interest on a variety of lending products, like credit cards and loans. It’s also possible to earn accrued interest on certain investing products and savings accounts.
Whenever an individual borrows money, they owe interest. They are paying to use that money. On the flip side, when they are investing and giving a financial institution, government agency, or company money to borrow for an investment, such as a bond, then the individual is owed interest.
Accrued Interest When Borrowing Money
When you borrow money, with an installment loan, for instance, interest typically accrues daily. At the end of the month, the accrued interest is added to the total monthly payment amount.
With credit cards, unless you pay your balance in full every month, the same daily accrual happens after the cardholder makes a charge with their card. The interest is building up as the month goes on. How much interest accrues depends on the balance and the interest rate.
Accrued Interest When Saving
Accounts that earn interest, such as certificates of deposits (CDs) and high-yield savings accounts, also often accrue interest daily. The amount of interest accrued is based on the account’s average daily balance. An exception to that is bonds, which generate a fixed interest payment on a quarterly, semiannual, or annual basis.
How to Calculate Accrued Interest
How interest accrues varies by the lender and product that’s generating the interest, which could be a loan, a line of credit, an investment product, or a bank account such as a savings account.
Example of Accrued Interest When Borrowing
To calculate how much interest will accrue daily with a credit card, for example, an individual needs to divide their APR (annual percentage rate) by 365 (for the number of days in a year). Then, they would multiply their current credit card balance by their daily rate. So if a credit card has an APR of 24.37% with a balance of $500, the calculation for how much interest accrues daily looks like this:
24.37 / 365 = 0.067%
$500 x 0.00067 = $0.34 interest that accrues daily
To calculate the monthly interest charge, multiply the daily rate by the number of days in the credit card billing cycle. So if there are 30 days in the billing cycle the calculation would look like this:
$0.34 x 30 = $10.20 in interest
Although credit card interest accrues daily, the total amount accrued is typically not added to your balance until the end of the billing cycle. So if you pay your balance in full by the due date, you can avoid paying accrued interest.
Example of Accrued Interest When Saving
To calculate accrued interest on a savings account, for example, take your yearly interest rate, which banks generally list as an APY, or the percentage of total interest you can earn on your account per year. To find the monthly interest rate, divide the APY by 12 (for the number of months in the year). So, if the APY is 5%, the calculation would look like this:
5 / 12 = 0.416% monthly interest rate
Next, to calculate how much interest you will actually earn on your money, you need to know if the interest is simple interest vs. compound interest. Most savings accounts use compound interest, and it is calculated depending on how often it compounds, such as monthly.
To determine how much annual interest you’ll earn on a balance of $1,000 in your savings account, the formula is:
P(1 + R / N)˄NT
P is the principal amount (the $1,000), R is your APY (calculated in decimal form), N is the frequency of compounding, which is monthly, and T is the amount of time, which in this case is 1 for one year. It would look like this:
1,000(1+ 0.05 / 12)˄12 x 1 = $1,250 💡 Quick Tip: If your checking account doesn’t offer decent rates, why not apply for an online checking account with SoFi to earn 0.50% APY. That’s 7x the national checking account average.
Accrued Interest vs Regular Interest
Accrued interest is different from regular interest. Accrued interest typically indicates interest charges that have accumulated but not yet been paid. Perhaps you have heard the term in this context with student loans: The interest may start accruing (adding up) when the loan is disbursed, but it could only become due at your studies’ completion. You may not be paying the interest just yet, but you can know the interest will be assessed.
Regular interest refers to the interest earned on, say, a home loan. Your payment plus interest is due on a certain date and is not accruing day after day or varying. The “regular interest” involves a known principal and interest rate, as well as a constant monthly payment that is due every month.
Why Is Accrued Interest Important?
Accrued interest shows how interest that an individual owes or is owed adds up. For example, with bonds, it may help you understand the interest that’s accruing so you can make sure you are earning the right amount. Or, if you have borrowed money, you can look at how the accruing interest could add to the amount you owe, which might, in turn, help you manage your money.
In the case of a credit card, if an individual sees how long it will take to pay off a credit card balance over a year or two, they could crunch the numbers on how much interest they will accrue during that time. They may find that paying the debt sooner could save them a lot of money, and then work to create a budget to help them pay down what they owe.
Understanding how that interest builds up is a valuable tool. By better comprehending how much you owe or are owed, you can manage your money and work to enhance your financial health.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.
FAQ
Is accrued interest good or bad?
Accrued interest isn’t necessarily a bad or good thing. If someone borrows money, they may not enjoy paying accrued interest, but it is a part of their lending agreement. On the other hand, if someone earns accrued interest on investments or savings, they’ll probably consider it a good thing.
Why do I have to pay accrued interest?
Paying accrued interest is more often than not necessary when someone borrows money. Those payments are required by lenders in exchange for lending money to consumers.
What is the difference between interest and accrued interest?
Regular interest represents the payment made in exchange for borrowing money or as a form of income earned from an investment. Accrued interest represents the amount of interest that builds up in between payments.
How do you avoid accrued interest?
When an individual enters a borrowing agreement, they need to pay any interest they accrue. That said, there are ways to avoid paying accrued interest altogether or to minimize accrued interest payments. For instance, pay your credit cards in full. When you pay the balance in full, you won’t have to pay any accrued interest.
Also, to minimize how much accrued interest you owe on a loan, you can make additional payments. Paying down the principal faster will lower how much interest accrues on a monthly basis. You may even be able to pay off the loan early, which also helps avoid more interest accruing.
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4.60% APY SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
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Certificates of deposit work as a short-term savings vehicle for goals such as upcoming home or car purchases. If you’re near or in retirement, you might wonder if CDs fit there too.
For risk-averse folks, CDs can be appealing. Safety is central to them: CDs offer predictable returns, federal deposit insurance and no volatility in value such as in the stock market.
Marcus by Goldman Sachs High-Yield CD
Term
6 months
EverBank CD
Term
9 months
Marcus by Goldman Sachs High-Yield CD
Term
1 year
Discover® CD
Term
1 year
“CDs are like that big, comfortable hug in the investing world,” says Noah Damsky, chartered financial analyst and founder of Marina Wealth Advisors in Los Angeles.
But CDs aren’t the most flexible among low-risk savings options. Here are some quick tips for what to do and not do when using CDs for retirement.
Do: Focus on short-term excess funds for CDs
Whether you’re near retirement or not, an emergency fund is a primary goal for short-term savings. Having three to six months’ worth of living expenses, or more, in a regular savings account tends to be a common recommendation.
CDs aren’t best for emergency cash because they require locking up a fixed sum for a period, typically ranging from three months to five years. But preserving extra cash reserves, beyond savings for emergencies, in CDs can make sense, especially since their yields are traditionally higher than in other bank accounts.
“CDs play an important role as an emergency fund supplement in retirement,” says Daniel Masuda Lehrman, certified financial planner and founder of Masuda Lehrman Wealth in Honolulu.
Do: Consider a CD ladder
Having a CD’s fixed rate during a high-rate environment can mean steady, solid returns for years. But in exchange, you lose access to funds for the term.
One workaround to preserve some access is a CD ladder. Instead of one CD, you divide an investment into equal amounts and put them into CDs of staggered term lengths, such as one year, two years and three years. Shorter terms work, too: three months, six months and nine months. The idea is that you can access some cash each time a CD matures, while letting the rest of an investment grow.
Do: Compare rates at banks or a brokerage
Your bank’s CDs might be convenient but not always the best deal. Online banks and credit unions tend to have some of the best CD rates, and their opening minimum deposits are often low, such as $1,000 or less. Current high-yield rates remain near or above 5% annual percentage yield for six-month and one-year terms, while longer-term rates such as for three and five years are closer to 4%, according to NerdWallet analysis in April.
You can also find competitive yields with brokered CDs, which are issued by banks and available at a brokerage. You need a brokerage account and some understanding of how these CDs work, though.
“A brokered CD is going to be most valuable to somebody who has a substantial amount of assets,” says David John, senior strategic policy advisor at the AARP Public Policy Institute. John cites a brokerage’s ability to spread funds across multiple financial institutions to ensure customers don’t hit the $250,000 cap for federal deposit insurance, which protects your money if a bank fails.
Don’t: Withdraw early
You generally can’t redeem CDs early without hassle or cost. At banks, CDs’ early withdrawals often come with a penalty, such as months to years’ worth of interest earned. A bank may let you withdraw interest early from a CD, but you’d lose out on the full amount a CD can earn from compounding interest.
At brokerages, you can leave a CD early by selling, but you risk losing some of the original value if current rates are higher than your CD’s rate.
Once a CD ends, there’s a grace period, typically seven to 10 days long, when you can withdraw the full amount without a penalty. Alternatively, you can consider a no-penalty CD, though rates tend to be lower than high-yield CDs at the same bank.
Don’t: Forget to pay taxes on interest
For most of the last decade or so, CD rates were at rock-bottom lows and the tax burden for CD interest was minimal. But that’s changed with higher rates in recent years.
“Sometimes folks forget that you can have a meaningful tax impact having this money in a CD,” Damsky says.
CD interest gets taxed at the same rate as regular income for the year you earned that interest. Having $10,000 in a one-year CD at 5% APY, for example, means you’re taxed on that $500 in interest. However, you can reduce your tax burden with IRA CDs, which are tax-advantaged accounts invested in CDs.
Don’t: Put too much money in CDs
One of the biggest mistakes Damsky sees for retirees is getting too averse to risk when investing, especially by overusing CDs. Sometimes the pitfalls with CDs, such as the lack of flexibility and access to funds compared with other low-risk alternatives, can outweigh the pros, he says.
Low-risk investment alternatives to CDs, such as money market funds, can have comparable returns with easier access to cash for brokerage customers. And within an investment portfolio, stocks and bonds play bigger roles than cash investments such as CDs do over time. Stocks historically have provided the greatest likelihood for strong returns while bonds balance out stocks’ volatility with more stability. As John points out, CDs often can’t completely protect against inflation the way other investments can.
Don’t rule out CDs for retirement savings — just know when to use them.
Do you want to find ways to get free Walmart gift cards? Yes, you can get free Walmart gift cards and make some extra money for this popular store. Walmart gift cards are a convenient way to handle your shopping budget, give gifts, or treat yourself. You might be surprised to learn that there are…
Do you want to find ways to get free Walmart gift cards?
Yes, you can get free Walmart gift cards and make some extra money for this popular store.
Walmart gift cards are a convenient way to handle your shopping budget, give gifts, or treat yourself. You might be surprised to learn that there are ways to get these gift cards without paying for them. By joining rewards programs, taking surveys, or using trade-in services, you can earn points that can be redeemed for free gift cards to Walmart.
Before you think this isn’t real, let me tell you – I’ve earned over 110 free gift cards myself. It feels great to use a free gift card to get something I want.
How To Get Free Walmart Gift Cards
Here is a quick list of places to get free Walmart gift cards to get started with:
Below is more information on each method to get free Walmart gift cards.
1. Swagbucks
Swagbucks is a great website to start with if you want to earn free gift cards to places like Walmart.
On Swagbucks, you can earn points (called “SB”) by doing tasks like answering surveys, playing games (like Candy Crush!), downloading apps, searching something on their search engine, and watching videos. Just sign up, fill out your profile, and start earning points to redeem for a free Walmart eGift Card code.
I’ve been using Swagbucks for years, and during that time, I’ve earned over 110 free gift cards myself. Earning points is easy, and the website is very user-friendly.
You can redeem your points for anywhere from a free $5 Walmart gift card to $500 at a time on Swagbucks.
Sign up for Swagbucks here and receive a $10 bonus.
2. Fetch Rewards
Fetch Rewards is an app for your phone (which I personally use at least once a week!) where you earn points by scanning receipts from grocery stores (any grocery store!). You can use these points to redeem Walmart gift cards.
You get points for every receipt no matter what, but you can earn more points if you buy specific items that they feature in their app. These include points for General Mills products (such as cereal), points for Tostitos chips, points for dog treats, and more.
Personally, I don’t really keep track of what I can earn extra points with – I just shop like I normally do and scan each and every receipt.
Fetch Rewards is one of my favorite ways to earn free gift cards as I don’t have to do much to get points. I just shop how I normally do, scan my receipt with my phone (I am literally just taking a picture of my receipt), and then I get points. You get points for every single grocery receipt too.
Sign up for Fetch Rewards here.
3. Sign up for the Walmart Rewards program
Walmart Cash is a rewards program for Walmart customers. You earn Walmart Cash by claiming offers on Walmart.com or in the Walmart app. Then, you can use your Walmart Cash for future purchases in-store or online.
Here’s an example of how it works:
If you want to use Walmart Cash in store:
Step 1 – Open your Walmart app and log in.
Step 2 – At the register, use the app to scan the QR code displayed there.
Step 3 – Choose “Use Walmart Cash” to turn your balance into a Walmart eGift Card and use it to reduce your bill.
It’s easy to use, but surprisingly, many people do not know about this rewards program.
4. Upside
Upside is an app that will help you get cash back for your fuel purchases (yes, from when you go to the gas station!). With Upside, you can get around $150 per year in estimated cash back.
Plus, the first time you use the app, you can get a higher amount of cash back in order to get you used to the platform. For my first time using this app, I was able to get $0.74 back per gallon. I bought 12.62 gallons, which means I saved $9.33 all by just using this app for the first time.
Not all gas stations are included in the Upside app, but you can earn rewards by choosing from the listed stations within the app. There are several gas stations that qualify near me, so I’m sure there are some that you go to as well.
This app does require you to select the gas station in the Upside app before you actually pump the fuel into your car, so this is an important step.
Then, you earn rewards that can be redeemed for free Walmart gift cards.
You can sign up for Upside here.
5. American Consumer Opinion
American Consumer Opinion is a company that pays people to share their opinions through surveys.
It’s free to join American Consumer Opinion, and surveys usually pay around $1 to $5 each. Once you reach a certain amount, you can redeem your earnings for free Walmart gift cards (or other rewards like PayPal cash).
Click here to join American Consumer Opinion.
6. Survey Junkie
Survey Junkie is a popular website where you can earn free Walmart gift cards by taking surveys online in your spare time. Answering three surveys a day on Survey Junkie can get you about $40 worth of Walmart gift cards each month.
Please click here to sign up for Survey Junkie.
7. Branded Surveys
Branded Surveys lets you earn points by answering questions in surveys. You can use these points to get free Walmart gift cards. Surveys take 5 to 15 minutes and pay between $0.50 and $5.00 each.
Click here to join Branded Surveys.
8. PrizeRebel
PrizeRebel is a website where you earn points by doing tasks like surveys and watching videos. You can use these points to get free Walmart gift cards.
I logged in last week and I had enough points for around $150 in free gift cards. I redeemed them all at once, and it is definitely some nice extra spending money!
Click here to sign up for PrizeRebel.
9. PayPal Honey
PayPal Honey is a free browser extension that automatically finds and applies coupon codes and promo codes when you shop online. By using it, you earn points that can be redeemed for extra money.
Here’s how it works:
Shop online as you normally would.
At checkout, Honey will find and apply the best coupon codes for you.
Sign up for PayPal Honey by clicking here.
10. Ibotta
Ibotta is an app that gives you cash back for shopping, such as at grocery stores. After you shop, simply upload your receipts to earn cash back that you can use for free Walmart gift cards.
Here’s a quick summary of how you use Ibotta:
Download the Ibotta app.
Check to see what the available offers are before you go to the grocery store (such as Honey Nut Cheerios or oranges).
Take a picture of your grocery receipt using your phone with the Ibotta app.
Some of the offers I see when in the app, so that you can get a better idea, include:
$1.00 cash back for buying General Mills cereal (such as Honey Nut Cheerios)
$0.50 cash back for buying mandarin oranges
$1.00 cash back for buying Starbucks Cold Brew
$5.00 cash back for buying Colgate toothbrushes
And so much more.
You need at least $20 in earnings for a free Walmart gift card. You can also redeem your points for many other gift cards, as well as PayPal cash or even a deposit straight to your bank account.
You may be wondering how Fetch Rewards and Ibotta differ. They are very similar and I use both. For me, I use Fetch Rewards and Ibotta at the same time for the same receipts. It’s a way to get even more points for doing something very similar.
You can join Ibotta here.
11. Rakuten
Rakuten lets you earn cash back on purchases from over 3,500 stores, such as Walmart, Target, Best Buy, Sephora, Old Navy, Chewy, Nike, and more.
When you buy something, you get a percentage of your purchase back in cash. You can receive your earnings through check or PayPal once a quarter.
While Rakuten doesn’t directly provide free Walmart gift cards, you can use the cash you earn from Rakuten for shopping at other stores like Walmart.
You can sign up for Rakuten for free here.
12. Find Walmart gift card giveaways
If you’re looking to get free Walmart gift cards, entering sweepstakes and giveaways can be a fun way to give it a shot.
To earn free Walmart gift cards through giveaways, you can:
Follow brands on social media like Instagram. Many companies host giveaways where you can win gift cards. Keep an eye out for their posts or stories announcing these giveaways.
Search hashtags like #freewalmart, #giveaway, #giveawayalert, #contest, and #freebie on Twitter, Facebook, and Instagram to find Walmart gift card giveaways.
Subscribe to online sweepstakes websites that list current giveaways to find opportunities to win Walmart gift cards.
Now, of course, entering giveaways isn’t a guaranteed way to get free Walmart gift card codes, but it doesn’t take a lot of time. I have personally entered giveaways through all of these methods (I used to spend probably an hour a week entering giveaways, haha!), and I have actually won quite a few things from free gift cards to cash, household goods, and more.
13. Prime Opinion
Prime Opinion is a survey website where you can earn money by sharing your opinions from home. They have many, many available surveys to complete, so there is a good chance that you can earn enough for regular free Walmart gift cards.
You need $5 in your account to redeem your points for Walmart gift codes on Prime Opinion.
Please click here to join Prime Opinion and get up to a $5 free bonus.
14. InboxDollars
InboxDollars is a rewards site where you earn points by answering online surveys, playing games, signing up for their shopping offers, and more. Then, you can use your points to get free Walmart gift cards.
You can join InboxDollars and get a free $5 sign-up bonus.
15. Walmart’s trade-in program
Walmart’s trade-in program is for you if you have electronics that you no longer need. You simply go to the Walmart trade-in website and select the type of device you have from options like phones, tablets, game consoles, and more.
Then, just answer some questions about your item’s condition and specifications.
After that, you will see an offer for your item. If you agree with the offer, then you’ll get a Walmart eGift Card.
Frequently Asked Questions
Below are answers to common questions about how to get free Walmart gift cards.
How can I get a Walmart gift card without paying?
You can get free Walmart gift cards without paying by answering surveys, trading in your old electronics, joining the Walmart rewards program, and getting cash back at places like the gas station.
How do I know if a Walmart gift card promotion is real?
To verify if a Walmart gift card promotion is legitimate, you can always check the official Walmart website, contact their customer service directly, or search on the FTC’s website to see if anything pops up.
If it’s an app that you are wanting to sign up for, you can look for their reviews, such as on Trustpilot to see what real people like you and me think about the app. There are scams out there, so you will want to stay safe and prevent fraud from happening to you. If something sounds too good to be true, then it may be best to just skip it!
Can you really get a Walmart gift card worth $100 or more for free?
Yes, there are ways to get a free $100 Walmart gift card. Many of the sites and apps above can allow you to earn enough points to get free Walmart gift card codes. For me, I actually just redeemed $150 in free digital gift card codes at once, so I know that it is a real thing. I like to save my points up so that I have a large amount in gift cards to redeem at once, and then I can put it toward a larger purchase.
Can I use Walmart gift cards at Sam’s Club?
Yes, Walmart eGift Cards can be used at Walmart.com and in Walmart stores. Sam’s Club members can also use them in-store or at Samsclub.com.
Best Ways To Get Free Walmart Gift Cards
I hope you enjoyed this article on how to get free Walmart gift cards.
There are many ways to earn free Walmart gift cards, as discussed above. From answering online surveys to uploading photos of your grocery receipts and using cash back sites, you can save money at Walmart by earning and using Walmart gift cards.
Plus, the gift cards can be used at both local Walmart stores and online, so you can get what you need and when you need it.
Walmart has low prices, but now you can save even more money.
Today’s average mortgage rates on May. 15, 2024, compared with one week ago. We use rate data collected by Bankrate as reported by lenders across the US.
Mortgage refinance rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders.
About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.
Current refinance rate trends
A vast majority of US homeowners already have mortgages with a rate below 6%. Because mortgage refinance rates have been averaging above 6.5% over the past several months, households are choosing to hold on to their existing mortgages instead of swapping them out with a new home loan.
If rates fell to 6%, at least a third of borrowers who took out mortgages in 2023 could reduce their rate by a full percentage point through a refinance, according to BlackKnight.
Refinancing in today’s market could make sense if you have a rate above 8%, said Logan Mohtashami, lead analyst at HousingWire. “However, with all refinancing options, it’s a personal financial choice because of the cost that goes with the loan process,” he said.
Where will refinance rates end up in 2024?
Mortgage rates have been sky-high over the last two years, largely as a result of the Federal Reserve’s aggressive attempt to tame inflation by spiking interest rates. Experts say that decelerating inflation and the Fed’s projected interest rate cuts should help stabilize mortgage interest rates by the end of 2024. But the timing of Fed cuts will depend on incoming economic data and the response of the market.
For homeowners looking to refinance, remember that you can’t time the economy: Interest rates fluctuate on an hourly, daily and weekly basis, and are influenced by an array of factors. Your best move is to keep an eye on day-to-day rate changes and have a game plan on how to capitalize on a big enough percentage drop, said Matt Graham of Mortgage News Daily.
What to know about refinancing
When you refinance your mortgage, you take out another home loan that pays off your initial mortgage. With a traditional refinance, your new home loan will have a different term and/or interest rate. With a cash-out refinance, you’ll tap into your equity with a new loan that’s bigger than your existing mortgage balance, allowing you to pocket the difference in cash.
Refinancing can be a great financial move if you score a low rate or can pay off your home loan in less time, but consider whether it’s the right choice for you. Reducing your interest rate by 1% or more is an incentive to refinance, allowing you to cut your monthly payment significantly.
Choosing the right refinance type and term
The rates advertised online often require specific conditions for eligibility. Your personal interest rate will be influenced by market conditions as well as your specific credit history, financial profile and application. Having a high credit score, a low credit utilization ratio and a history of consistent and on-time payments will generally help you get the best interest rates.
30-year fixed-rate refinance
The average 30-year fixed refinance rate right now is 7.22%, a decrease of 9 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance, but it will take you longer to pay off and typically cost you more in interest over the long term.
15-year fixed-rate refinance
The average 15-year fixed refinance rate right now is 6.80%, a decrease of 3 basis points from what we saw the previous week. Though a 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan, you’ll save more money over time because you’re paying off your loan quicker. Also, 15-year refinance rates are typically lower than 30-year refinance rates, which will help you save more in the long run.
10-year fixed-rate refinance
The average 10-year fixed refinance rate right now is 6.80%, a decrease of 7 basis points compared to one week ago. A 10-year refinance typically has the lowest interest rate but the highest monthly payment of all refinance terms. A 10-year refinance can help you pay off your house much quicker and save on interest, but make sure you can afford the steeper monthly payment.
To get the best refinance rates, make your application as strong as possible by getting your finances in order, using credit responsibly and monitoring your credit regularly. And don’t forget to speak with multiple lenders and shop around.
Reasons you might refinance your home
Homeowners usually refinance to save money, but there are other reasons to do so. Here are the most common reasons homeowners refinance:
To get a lower interest rate: If you can secure a rate that’s at least 1% lower than the one on your current mortgage, it could make sense to refinance.
To switch the type of mortgage: If you have an adjustable-rate mortgage and want greater security, you could refinance to a fixed-rate mortgage.
To eliminate mortgage insurance: If you have an FHA loan that requires mortgage insurance, you can refinance to a conventional loan once you have 20% equity.
To change the length of a loan term: Refinancing to a longer loan term could lower your monthly payment. Refinancing to a shorter term will save you interest in the long run.
To tap into your equity through a cash-out refinance: If you replace your mortgage with a larger loan, you can receive the difference in cash to cover a large expense.
To take someone off the mortgage: In case of divorce, you can apply for a new home loan in just your name and use the funds to pay off your existing mortgage.
Steve Resch, vice president of retirement strategies at leading reverse mortgage industry lender Finance of America, knows a lot about the intersection between the interests of financial planning professionals and reverse mortgage industry members.
Financial planners have been, and remain, one of the most sought-after referral partnerships for reverse mortgage professionals to establish ties with. That has certainly not diminished in the current business environment.
To get a better understanding of the kinds of concerns and interests financial planners have at the moment, RMD sat down with Resch to discuss some of what he is seeing right now.
Chris Clow/RMD: The reverse mortgage business in general is going through a time of reduced volume. But it seems like things are starting to pick back up. Conversations I’ve had with a lot of front-line originators have been more optimistic over the past few months. And I’m curious how this combines with what you do for Finance of America.
Steve Resch: In my position, I work directly with financial advisers. We have not really seen much change in our business recently, because a lot of what we do with the advisers involves using home equity for strategic planning purposes, and that doesn’t really go away in high interest rate environments.
We have still had numerous conversations and activity with the advisers. However, we’re finding — and I’ve seen this for a while, and it’s becoming more and more prevalent — that the most receptive part of our conversations is the use of home equity for long-term care management.
Clow: That’s interesting. Why is that?
Resch: This is something the advisers are very open to. I just came back from an investment conference last week, where I spoke on this topic, and they were very receptive, very open to it, because the advisers all need to figure out how to manage long-term care expenses for our clients. The clients are very hesitant to pay for an insurance solution, which can be very expensive — we could be talking $10,000 to $15,000 per year for an insurance solution.
So, if we can manage that risk by using home equity to manage the risk, and our only costs involved there are setting up, for example, a line of credit, then we’ve had limited costs. We’ve got cash-flow savings for the next 20 years that we would have been spending on an insurance solution. And yet, we’ve still managed the risk because we have a portion of home equity reserved for long-term care planning.
And that, of course, grows and compounds over time. It has an inflation factor built in just like an insurance policy does, because it’s tied to interest rates, which, of course, are tied to inflation. So, the advising community is very open and very excited about this because again, it’s managing the risk at low cost.
Clow: One of the predominant things I’ve heard from people in the business is that HECM for Purchase (H4P) is a sleeping giant just waiting for the right opportunity. How, if at all, has H4P entered the conversation with the financial planner partners you know?
Resch: It is definitely becoming more prevalent as well. Circling back to the conference I attended, I had two female advisers come up to me after the presentation. They told me they both used H4P in their divorce settlements. I think this is a phenomenal opportunity.
In fact, we’re working on a presentation about using H4P for divorce settlements, but aside from that, it’s a phenomenal opportunity. Your investment assets are what provide income; you don’t live off of home equity. Home equity is where you live and stay. So, using the reverse for purchase, they were able to get into homes they wanted to be in and not drain down any invested assets, which provide revenue for that. It’s a great opportunity.
Clow: Is it a “sleeping giant” in the business, or is that potentially overblown?
Resch: I do believe it’s a sleeping giant. I think it probably would have been more prevalent even a few years ago, if we hadn’t had the massive explosion in home appreciation brought on by COVID. I think that pushed a lot of people to the sidelines because it was really a cash purchase market. You didn’t have time to really go through financing — at least that’s the way it was in my area. everything was being purchased for cash and then you finance later.
So, I think the real estate markets in general, while still strong, have settled down. And you have opportunities to negotiate; you have opportunities to do financing. And I think this is an ideal time for the reverse for purchase to really start moving to the forefront.
Clow: I’m curious about the evolutions that you’ve observed in the conversation since the pandemic. There was a huge refinance volume that dropped off, and then you’ve also had industry consolidation, and home prices have not ticked down significantly at a national level. What, to you, is the most identifiable evolution of your conversations since the pandemic?
Resch: Our goal, or our objective, is always to teach, educate and present the opportunity of using home equity as a strategic component in a financial plan. So, prior to COVID, through COVID, that has still been our messaging: Let’s use home equity. We’re not paying attention to interest rates or changes in PLFs; we’re looking at the concept of using home equity to safeguard and enhance the retirement plan.
To that end, I would say that, over the past several years, that education is getting out there, and I do believe we are starting to turn that learning curve where advisers are much more open to it. Circling back to the conference I was at, we had numerous advisers who came up and what they said was, “Thank you for being here, it’s really great to be able to talk to someone in the industry in person.”
A lot of the issues that they had were that if they wanted to find out information about a reverse mortgage, and they would start Googling it, everything that popped up was from a lender. But we had an opportunity to have a one-on-one conversation without the pressure of a sale.
Clow: Is that important?
Resch: Yes, this is what these people need. They still need to be educated; you can read about it, you can run through scenarios, but they still need that conversation, that education. And I think we are still evolving toward that, where they’re much more open to talking, much more open to listening and asking questions, because they see the reality as well that we have the demographics that demand that we look at home equity as far as retirement planning goes.
So, again, our evolution, I don’t think I can tie it to anything that’s really happened as far as COVID or anything else. It’s all a learning curve, and I think we are really starting to move up that S-curve.
The average homeowner with a mortgage ended 2023 with $299,000 in home equity, according to ICE Mortgage Monitor, which also estimates that the average funds homeowners could tap by borrowing against their home equity is $193,000.
Obviously, that number varies for each individual and depends on factors such as the original down payment, local property values, and the amount of time in the home. But if you have more than 20% equity in your home, using a home equity line of credit (HELOC) to build wealth is a strategy to consider.
Ways to Build Wealth With a HELOC
A home equity line of credit lets you borrow funds as needed (up to a prearranged limit) through a credit draw. This is different from a home equity loan, in which you would borrow a one-time sum of cash. Drawing on your home equity for certain expenses could help grow your wealth over time, if it financially makes sense. Here are some options to consider.
1. Home Improvements
A HELOC works well for larger home improvement projects and renovations because you can draw funds to pay for materials and contractors as needed. You accrue interest only on the outstanding balance, so it could be cheaper to opt for a HELOC vs. a home equity loan. And if you itemize your taxes, you could deduct HELOC interest payments when the money is used to improve the home.
Plus, a renovation project could build wealth by increasing the value of your home. Home improvement experts estimate that a kitchen refresh could deliver a 377% return on investment and refinishing hardwood floors could have a 348% ROI.
2. Debt Consolidation
You can’t deduct HELOC interest when you use the funds to consolidate debt, but you could still build your wealth. Paying off debt with a lower interest rate could save you a lot of money over the long run. Let’s look at an example.
Say you qualify for a HELOC with an 8% APR but you have a $10,000 credit card balance with a 22% APR. In order to pay off that card in five years, you’d pay $276.19 per month and pay $6,571.35 in interest.
With the HELOC, on the other hand, let’s say you made interest-only payments for one year, then spread out the principal and remaining interest over four years, for a total of five years. During the interest-only period, your payment would be $66.67, followed by $244.13 for the remaining four years. On top of that, you’d only pay a total of $2,518.19 in interest for the entire five years. That’s a potential savings of $4,053.16 in interest payments by consolidating to a lower rate!
3. Real Estate Investments
Using a HELOC to finance an investment property can help you start climbing the real estate ladder. Homeowners could use the funds to make a down payment, cover closing costs, and/or make some upgrades before renting out the property.
You’ll still need to qualify for the new property’s monthly mortgage loan payments, particularly if there isn’t a current rental income history for the lender to review. Assuming you’re eligible for the loan, the goal is to use the rental income to pay off the HELOC and make a profit. On top of that, the property itself could increase in value over time, building your overall wealth.
4. Education and Skills Development
Investing your home equity in your education or skills development could increase your earning power and, consequently, your wealth. Research shows that people with advanced degrees tend to earn more than those without them.
For instance, a study published in Demography revealed that women with bachelor’s degrees earn $630,000 more in a lifetime than those with a high school degree. For men, the increase in lifetime earnings is $900,000. The numbers are even more dramatic with graduate degrees. Women’s lifetime earnings are $1.1 million higher than their high school graduate counterparts, whereas men earn $1.5 million more. Clearly, investing in your professional skills can translate into greater wealth.
5. Start or Expand a Business
The majority of small business owners invest their personal funds in the growth of their companies. Research also shows that upfront funding correlates with greater revenue. So while there’s no way to know that home equity financing you use for your business will guarantee success, it could improve your odds to scale more quickly.
6. Investment Portfolio Growth
Growing a diversified investment portfolio is another option for using a HELOC to build wealth. Obviously, there is risk involved when funding investments. Focusing on long-term investments could help reduce the risk of short-term market volatility. Remember, though, that for investments made with money from a HELOC to truly pay off, you would have to earn more on the investment than you pay in interest for the HELOC.
7. Emergency Fund or Cash Reserve
Most financial experts recommend having three to six month’s worth of savings on hand in cash in case you lose a job or the ability to earn an income. However, the economic volatility that came during the pandemic has people rethinking that number and even recommending up to a year of expenses in savings. Using a type of home equity loan like a HELOC could give you the peace of mind of having a financial cushion to fall back on, while allowing you to carefully invest that six months of savings instead of keeping it in cash.
Turn your home equity into cash with a HELOC brokered by SoFi.
Access up to 95% or $500k of your home’s equity to finance almost anything.
What to Consider Before Getting a HELOC
There are several factors to consider before you decide on a HELOC instead of some other type of financing, such as a cash-out refinance or unsecured personal line of credit.
• Your home is used as collateral: In other words, if you default on your HELOC payments, you could lose your house.
• You must maintain 10% to 20% equity in your home: You can’t tap into your entire equity amount; lenders require you to keep some, which means you may not be able to borrow as much as you originally thought.
• Rates are usually variable: Your interest won’t stay the same and could increase if rates rise. That could mean a bigger balance and bigger payments down the road.
• HELOCs have two stages: The first is the draw period, in which you only have to make interest payments. After the draw period, you’ll make payments on both principal and interest.
Pros and Cons of Taking Equity Out of Your Home
It’s certainly possible to build wealth using a HELOC, but there are advantages and disadvantages to think about.
Pros:
• Low interest rate compared to other financing
• Interest accrues only on the balance, not available credit
• Borrow again when you replenish the credit line
• No restrictions on how you use the money you borrow
Cons:
• Home is used as collateral, putting it at risk
• Payment amount increases after draw period is over
• May come with closing costs and maintenance fees
The Takeaway
Tapping into your home equity using a HELOC is one way to potentially build wealth, especially because rates tend to be low when compared to other forms of borrowing. It’s always worth weighing the pros and cons, since defaulting on payments could result in losing your house. But if you have the financial confidence to move forward, there are several ways that your home equity could help you build wealth.
SoFi now offers flexible HELOCs. Our HELOC options allow you to access up to 95% of your home’s value, or $500,000, at competitively low rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit brokered by SoFi.
FAQ
Is it smart to use a HELOC for investment property?
Using a HELOC for an investment property could help you fund the transaction sooner than if you used other types of financing. You may be able to make a bigger down payment or even make an all-cash offer. Just be sure that you feel confident in your real estate market research and your ability to make payments even if a worst-case scenario occurs.
What should you not use a HELOC for?
A HELOC should not be used for depreciating assets, especially when your goal is to build wealth. Things like vacations and car purchases aren’t usually recommended since they don’t hold their financial value.
What are the pitfalls of a HELOC?
The biggest pitfall is that your home is used as collateral to secure a HELOC and can go into foreclosure if you miss payments. On top of that, variable interest rates result in the potential for larger-than-expected payments if rates increase over time.
Photo credit: iStock/nortonrsx
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 for more information.
*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.
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.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
²
To obtain a home equity loan, SoFi Bank (NMLS #696891) may assist you obtaining a loan from Spring EQ (NMLS #1464945).
All loan terms, fees, and rates may vary based upon individual financial and personal circumstances and state.
You may discuss with your loan officer whether a SoFi Mortgage or a home equity loan from Spring EQ is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit brokered through SoFi. Terms and conditions will apply. Before you apply for a SoFi Mortgage, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and loan amount. Minimum loan amount is $75,000. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria.
SoFi Mortgages originated through SoFi Bank, N.A., NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org). Equal Housing Lender. SoFi Bank, N.A. is currently NOT able to accept applications for refinance loans in NY.
In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
When you take out a mortgage, you can deduct the amount of money you pay on mortgage interest from your taxable income. But is home equity line of credit (HELOC) interest tax deductible, too? Put simply, it depends on when you took out the HELOC and how much mortgage debt you have.
Here’s what you need to know about HELOC tax deductions, including the requirements and limitations on HELOC tax-deductible expenses, plus how to calculate your deduction.
What Is a HELOC?
Whether to cover renovation costs or consolidate debt, homeowners can borrow against the value of their home to secure the necessary funding. There are two main types of home equity loans: a conventional home equity loan and a home equity line of credit, also known as a HELOC. A HELOC functions as a revolving line of credit that uses home equity — the home’s value minus the amount you still owe on the primary mortgage — as collateral.
How much you can borrow typically ranges from 75% to 85% of your home equity. Generally, lenders require a minimum of 15% to 20% equity in your home to be eligible for a HELOC.
When comparing a HELOC vs a home equity loan, a key difference is that a HELOC allows you to draw funds as you need them, up to a maximum limit, over a draw period (often 10 years). By contrast, home equity loans disburse funds all at once.
With HELOC loans, you pay interest only on the amount you withdraw. Once the draw period ends, any remaining borrowed funds and interest are repaid over a repayment period, which can vary but typically spans 10 years.
Dive deeper: What Is a Home Equity Line of Credit?
How Does a HELOC Affect Your Taxes?
The interest paid on a HELOC could qualify as a tax deduction to lower your taxable income. If you own a home and are planning to claim a HELOC tax deduction, there are some requirements and limitations to keep in mind.
Turn your home equity into cash with a HELOC brokered by SoFi.
Access up to 95% or $500k of your home’s equity to finance almost anything.
Requirements for the HELOC Interest Tax Deduction
To answer “is interest on a HELOC tax deductible,” it’s essential to check that you meet certain requirements set by the Internal Revenue Service (IRS).
Since the Tax Cuts and Jobs Act of 2017, there are stricter requirements for how funds are spent to be eligible for a HELOC tax deduction. Specifically, funds from a HELOC must be used to buy, build, or improve a qualifying home — either a primary or second home. Eligible expenses can range from rewiring a house to replacing a roof or remodeling a kitchen. Note that funds must be spent on the same property used to secure the HELOC.
It’s also required that you have positive equity in the home used to secure the HELOC. If you have an underwater mortgage, meaning you owe more on the home than its value, you are not eligible for a HELOC tax deduction.
These requirements are in place for tax years 2018 through 2025. Prior to the rule change, a HELOC tax deduction could be made for interest paid on debt used for any type of personal expenses, not just home improvements.
Recommended: Cash Refinance vs. Home Equity
HELOC Tax Deduction Purchase Limits
HELOC tax deductions are not unlimited. So, up to what amount are HELOC loans tax deductible?
The IRS allows you to deduct interest on a maximum of $750,000 in residential loan debt (or $375,000 if married filing separately), including the primary mortgage and a HELOC. For instance, if you had $700,000 left on a home mortgage loan and $150,000 in HELOC debt, you could only deduct interest on the first $750,000 of debt.
If your primary mortgage or HELOC was approved before the 2018 tax year, you may be eligible to claim interest up to the previous limit of $1 million (or $500,000 if married filing separately). Borrowers who took out a HELOC in 2017 or earlier should note that the rule change did away with the $100,000 limit (or $50,000 if married filing separately) on home equity debt for tax deductions.
Tax Deduction Limits on Primary Mortgages
The tax deduction limits on primary mortgages are based on when the mortgage loan was taken out. If you took out a mortgage before October 13th, 1987, there is no cap on mortgage interest tax deductions. Homebuyers who got a mortgage between October 13, 1987 and December 16, 2017, can deduct interest on up to $1 million in total mortgage debt for married couples filing jointly and single filers. The limit is $500,000 for married couples filing separately.
If you took your mortgage out after December 16, 2017, you can deduct up to $750,000 (or $375,000 if married filing separately).
These limits applied to all combined mortgage debt, including first homes, second homes, and HELOC loans.
Is Home Equity Loan Interest Tax Deductible?
The tax deduction rules for home equity loan interest is the same as a home equity line of credit. As long as you’re using funds to buy, build, or improve a home, you can claim a tax deduction on mortgage debt up to $750,000.
Recommended: What Is a Home Equity Loan?
How to Calculate a HELOC Interest Tax Deduction
Prior to filing taxes, you should receive IRS Form 1098 from your HELOC and mortgage lenders. This form indicates the interest you paid on your HELOC, primary mortgage, or home equity loan in the previous year.
If you used any HELOC funding for ineligible uses, such as personal expenses or debt consolidation, you’ll need to subtract that portion to get the deductible interest.
Besides the interest you paid on your primary mortgage and HELOC loan, total up other deductions like property taxes, mortgage points, and student loan interest. Since you can only deduct mortgage and HELOC interest payments with an itemized deduction, it’s important to check that the total of your deductions exceeds the standard deduction amount.
Here are the standard deduction amounts for tax year 2024:
• Single or Married Filing Separately: $14,600.
• Married Filing Jointly or Qualifying Surviving Spouse: $29,200.
• Head of Household: $21,900.
If the mortgage and HELOC interest, plus other tax deductions you’re eligible for, exceed the above amounts, then it’s worth considering itemizing.
Recommended: Personal Line of Credit vs. HELOC
How to Deduct Home Equity Loan Interest
To deduct home equity loan interest, you’ll need to gather any receipts or invoices documenting how the money was spent. Be sure to keep records of transactions for eligible home renovations and improvements to verify your deductions in case you are audited by the IRS.
Once you’ve compiled all the necessary documentation, you’ll itemize your deductions using Schedule A of IRS Form 1040.
Does a HELOC Affect Property Taxes?
While the amount you take out through a HELOC won’t affect your property taxes, the improvements you make to your home could potentially increase the value of your home. If your renovation is substantial and involves a permit, it could be more likely to change the appraised value and potentially increase your property taxes.
The Takeaway
You can deduct the interest paid on your HELOC if the funds are used to buy, build, or improve your home. HELOC tax deductions must be itemized, and they are only allowable for the first $750,000 in mortgage debt on qualifying primary and secondary residences.
SoFi now offers flexible HELOCs. Our HELOC options allow you to access up to 95% of your home’s value, or $500,000, at competitively low rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit brokered by SoFi.
FAQ
Do you report a HELOC on your taxes?
You report your HELOC interest on your taxes if you’re claiming an itemized deduction and you used your HELOC to build or improve your home.
Will a HELOC appraisal raise my taxes?
No, a HELOC appraisal will not raise your taxes. Property taxes are based on the appraised value of your home by your local government.
Does HELOC affect capital gains tax?
No, a HELOC does not affect capital gains tax on a home sale.
Photo credit: iStock/damircudic
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 for more information.
*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.
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.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
²
To obtain a home equity loan, SoFi Bank (NMLS #696891) may assist you obtaining a loan from Spring EQ (NMLS #1464945).
All loan terms, fees, and rates may vary based upon individual financial and personal circumstances and state.
You may discuss with your loan officer whether a SoFi Mortgage or a home equity loan from Spring EQ is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit brokered through SoFi. Terms and conditions will apply. Before you apply for a SoFi Mortgage, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and loan amount. Minimum loan amount is $75,000. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria.
SoFi Mortgages originated through SoFi Bank, N.A., NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org). Equal Housing Lender. SoFi Bank, N.A. is currently NOT able to accept applications for refinance loans in NY.
In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Demand for second-home mortgages fell twice as fast as mortgage demand for primary homes, as housing costs rose to new heights.
An early look at this year’s data shows that demand for vacation homes hasn’t picked up in 2024; interest in second-home mortgages has been sitting near an 8-year low all year.
Many of the people who did take out mortgages for second homes last year were high earners, white and/or Gen Xers.
Austin and the Bay Area saw the biggest declines in mortgages for second homes in 2023.
U.S. homebuyers took out 90,772 mortgages for second homes in 2023, down 40% from a year earlier and down 65% from the height of the pandemic housing boom in 2021.
For the sake of comparison, mortgages for primaryhomes fell at half that rate; they were down 20% year over year in 2023 and down 35% from 2021.
This is according to a Redfin analysis of Home Mortgage Disclosure Act (HMDA) data covering purchases of second homes, primary homes and investment properties from 2018 to 2023. The term “vacation home” is used interchangeably with “second home” in this report.
Home purchases fell across the board last year due to low inventory, high mortgage rates, and high home prices; 2023 was the least affordable year on record. Affordability hasn’t improved in 2024; monthly housing costs are at an all-time high. Mortgages for second homes dropped more than mortgages for primary homes for several reasons:
It’s more expensive to buy a second home. The typical second home was worth $475,000 in 2023, versus $375,000 for primary homes. Additionally, the federal government increased loan fees for second homes in 2022, upping the total cost of buying one.
Vacation homes aren’t a necessity the way primary homes are, so when housing costs skyrocket, many prospective second-home buyers back off.
Purchasing a second home for your own use is a less attractive proposition than it was a few years ago because many companies are now requiring their employees to return to the office, meaning there’s less time to spend in vacation homes.
Purchasing a second home to rent it out is also a less attractive proposition than it once was because the rental market has cooled from its pandemic peak, and owners of short-term rentals on sites like Airbnb are generally earning less revenue.
“Soaring prices pushed down demand for vacation homes last year, both for cash buyers and those getting a mortgage–but the latter pulled back even more because high rates exacerbated high prices,” said Phoenix Redfin Premier agent Heather Mahmood-Corley. “There has been a small uptick in interest in second homes this year, mostly from cash buyers who plan to eventually move in full time. People who would need a mortgage are still sitting on the sidelines, waiting for rates to come down–especially because rates are typically even higher for second homes than primary homes.”
Just 3% of all mortgages went to second-home buyers in 2023, down from 5% in 2020
The share of total mortgages that went to second-home buyers also dropped last year: 2.8% of all mortgage originations in 2023 were for second homes, down from 3.6% in 2022 and 5.1% in 2021.
The vast majority of mortgages go to buyers of primary homes: They took out nearly nine in 10 (88.6%) mortgages in 2023, 87.2% in 2022 and 89.2% in 2020. The remainder go to those buying investment properties, with 8.6% of all mortgages taken out in 2023 used for investment properties, compared with 9.2% in 2022 and 5.9% in 2020.
Vacation-home demand hasn’t picked up in 2024
An early look at this year’s data shows that demand for second homes hasn’t picked up in 2024. Mortgage-rate locks for second homes have been sitting near their eight-year low since the beginning of this year, according to a separate Redfin analysis of data from Optimal Blue. They declined 7.3% from a year earlier in April. By comparison, mortgage-rate locks for primary homes declined 1.6%.
Please note that Optimal Blue data is different from the HMDA data used in the rest of this report. Optimal Blue data is a leading indicator because it measures mortgage-rate locks (an agreement between a buyer and a lender that locks in a rate for a period of time; roughly 80% result in home purchases) as opposed to mortgage originations, and it includes a sample of U.S. mortgages rather than all U.S. mortgages.
The people who are buying vacation homes: Affluent, white, Gen X
So, who did buy vacation homes in 2023? We broke the data down by income level, race and age:
High earners: The vast majority of people who took out mortgages for vacation homes in 2023 were–unsurprisingly–high earners. Nearly nine in 10 (86%) second-home mortgages issued last year went to high-income buyers. Just under 3% went to low-income buyers. (The nationwide median household income of home purchasers in the HMDA data is $178,000 for high-income buyers and $65,000 for low-income buyers.)
White people: Nearly four in five (79%) vacation-home mortgages went to white homebuyers in 2023. Asian and Hispanic homebuyers come next, with 6.4% and 6.2% of new vacation-home mortgages, respectively. Buyers who identify as more than one race took out 5.4% of second-home mortgages, and Black buyers took out 2.7%.
Gen Xers: 29.5% of vacation-home mortgages went to 55-64 year olds in 2023, and another 28.6% went to 45-54 year olds (Gen Xers were 43-58 in 2023). Next come 35-44 year olds (21%), 65-74 year olds (11.4%) and people under 35 (6.9%).
Second-home mortgages dropped most in Austin and the Bay Area
Mortgage originations for second homes fell in all major U.S. metros last year. They fell most in Austin, TX, with a 62.5% year-over-year drop in 2023. Austin’s housing market slowed substantially across the board last year as the pandemic migration boom waned and housing costs climbed too high for many locals. The next-biggest declines for second-home mortgages were mostly in expensive coastal cities: San Francisco (-57.6%), New York (-53.9%), Seattle (-53%) and Nashville, TN (-51.3%).
The smallest declines in second-home mortgages were in relatively affordable metros in the middle of the country and on the East Coast: St. Louis (-25.2% year over year), Kansas City, MO (-31.1%), Providence, RI (-31.1%), Montgomery County, PA (-32.1%) and Warren, MI (-32.1%).
Second homes are most common in Florida
Second-home mortgages made up the largest share of all mortgage originations in West Palm Beach, FL, a popular destination for snowbirds and vacationers, in 2023. Just under 7% of all mortgage originations in the West Palm Beach metro last year were for second homes. Next come Orlando, FL (4.1%), Riverside, CA (4%), New Brunswick, NJ (3.9%) and Tampa, FL (3.6%). Even though the share of second-home mortgages was largest in those places of all the major U.S. metros, they were still down at least 37% year over year.
On the other end of the spectrum, second-home mortgages made up a miniscule share (about 0.5%) of total mortgages in Detroit, Montgomery County, PA, Oakland, CA, Cleveland and Dallas.
Metro-level summary: Mortgages for second homes, 2023
50 most populous U.S. metros
U.S. metro area
Second-home mortgage originations
Second-home mortgage originations, YoY change
Share of total mortgage originations that were for second homes
Median value of second homes
Anaheim, CA
444
-36.7%
2.9%
$1,335,000
Atlanta, GA
734
-45.2%
1.0%
$435,000
Austin, TX
388
-62.5%
1.1%
$495,000
Baltimore, MD
222
-45.6%
0.8%
$515,000
Boston, MA
428
-43.9%
1.2%
$805,000
Charlotte, NC
454
-42.5%
1.2%
$445,000
Chicago, IL
448
-48.4%
0.7%
$365,000
Cincinnati, OH
181
-41.8%
0.7%
$325,000
Cleveland, OH
119
-39.3%
0.6%
$225,000
Columbus, OH
212
-41.3%
0.9%
$420,000
Dallas, TX
447
-45.9%
0.6%
$485,000
Denver, CO
514
-36.2%
1.3%
$675,000
Detroit, MI
73
-32.4%
0.5%
$245,000
Fort Lauderdale, FL
679
-47.0%
3.5%
$445,000
Fort Worth, TX
215
-45.6%
0.7%
$435,000
Houston, TX
1114
-47.5%
1.4%
$405,000
Indianapolis, IN
254
-32.4%
0.9%
$325,000
Jacksonville, FL
680
-43.7%
2.7%
$475,000
Kansas City, MO
206
-31.1%
0.8%
$335,000
Las Vegas, NV
877
-49.6%
3.1%
$455,000
Los Angeles, CA
512
-51.1%
1.3%
$1,305,000
Miami, FL
602
-46.2%
3.1%
$715,000
Milwaukee, WI
145
-45.7%
1.0%
$355,000
Minneapolis, MN
393
-38.1%
0.9%
$420,000
Montgomery County, PA
91
-32.1%
0.5%
$510,000
Nashville, TN
394
-51.3%
1.4%
$510,000
Nassau County, NY
600
-43.6%
2.8%
$1,725,000
New Brunswick, NJ
858
-45.4%
3.9%
$885,000
New York, NY
865
-53.9%
1.8%
$985,000
Newark, NJ
280
-37.5%
1.6%
$375,000
Oakland, CA
99
-50.5%
0.5%
$995,000
Orlando, FL
1483
-36.9%
4.1%
$445,000
Philadelphia, PA
124
-50.2%
0.7%
$355,000
Phoenix, AZ
2001
-46.5%
3.2%
$535,000
Pittsburgh, PA
181
-38.2%
0.9%
$285,000
Portland, OR
258
-50.0%
1.1%
$605,000
Providence, RI
363
-31.1%
2.7%
$775,000
Riverside, CA
1566
-47.1%
4.0%
$655,000
Sacramento, CA
455
-48.8%
2.1%
$805,000
San Antonio, TX
438
-51.1%
1.3%
$335,000
San Diego, CA
411
-45.4%
2.1%
$1,115,000
San Francisco, CA
112
-57.6%
1.6%
$1,355,000
San Jose, CA
69
-35.5%
0.7%
$1,300,000
Seattle, WA
239
-53.0%
0.8%
$795,000
St. Louis, MO
303
-25.2%
0.9%
$315,000
Tampa, FL
1618
-41.5%
3.6%
$425,000
Virginia Beach, VA
415
-47.5%
1.8%
$525,000
Warren, MI
281
-32.1%
1.0%
$325,000
Washington, DC
436
-46.1%
0.9%
$655,000
West Palm Beach, FL
1081
-37.0%
6.6%
$635,000
Methodology
The 2023 data in this report is from a Redfin analysis of Home Mortgage Disclosure Act (HMDA) data covering purchases of second homes, primary homes and investment properties from 2018-2023. The term “vacation home” is used interchangeably with “second home” in this report. For this report, the median “worth” or “value” of second homes is the median property value from HMDA data itself, which is reported by the mortgage loan originator as either the home’s appraised value or sale price.
The 2024 data in this report is from a Redfin analysis of mortgage-rate lock data from real estate analytics firm Optimal Blue. Redfin created a seasonally adjusted index of Optimal Blue’s data to adjust for typical seasonal patterns and allow for simple comparisons of second-home demand before, during and after the pandemic. We define “pre-pandemic” as January and February 2020 and set the index for that period to 100. This data is subject to revision. A mortgage-rate lock is an agreement between a homebuyer and a lender that allows the homebuyer to lock in an interest rate on a mortgage for a certain period of time, offering protection against future interest-rate hikes. Homebuyers must specify whether they are applying to secure a mortgage rate for a primary home, a second home or an investment property. Roughly 80% of mortgage-rate locks result in actual home purchases.
Do you want to learn how to get free PayPal money? Yes, there are actually many ways to get cash straight in your own PayPal account. Receiving PayPal cash for the extra income you make is great because PayPal cash can be used for almost all online shopping. If you want to increase your budget…
Do you want to learn how to get free PayPal money?
Yes, there are actually many ways to get cash straight in your own PayPal account.
Receiving PayPal cash for the extra income you make is great because PayPal cash can be used for almost all online shopping.
If you want to increase your budget without working extra hours, earning free PayPal money could be the solution. Many legitimate platforms offer tasks like surveys, watching videos, or trying new apps in exchange for cash directly deposited into your PayPal account.
I have personally used many of the apps below on a regular basis and have earned a lot of free PayPal money over the years.
Recommended reading: How To Get $20 PayPal Now
How To Get Free PayPal Money
Here are some places where you can start earning free PayPal money:
Below is more detailed information about each method for getting free PayPal cash in your PayPal account.
1. Swagbucks
Swagbucks is a well-known rewards website that gives you PayPal cash as a reward. It has been downloaded over 5 million times and has paid out over $500 million in rewards.
On Swagbucks, you can earn points called “SB” by answering surveys, getting cash back when you shop through their platform, and watching short videos.
With the points you earn on Swagbucks, you can put money directly into your PayPal account. You can redeem your points starting at $5 (this is 500 points) all the way up to $250 (25,000 points).
I began using Swagbucks about 10 years ago, and since then, I’ve earned over 110 free gift cards for myself, including a lot of PayPal cash. I don’t spend a lot of time on it – just every now and then.
Sign up for Swagbucks here and get up to a free $10 bonus.
2. User Interviews
User Interviews is a company that pays for online studies. These are more in depth than paid online surveys, and you can earn around $50 to $100 per hour or more for sharing your opinions and feedback.
They launch over 2,000 studies monthly, and they have paid over 85,000 people in the last year.
These are typically completed over the phone or in a video call where an interviewer is asking you questions.
The average study pays over $60. When you participate in User Interviews, you can receive payments in various forms such as cash, a check, PayPal, Amazon gift cards, Visa gift cards, and more.
You can click here to sign up for User Interviews.
Recommended reading: User Interviews Review – Make $50 To $100 An Hour Sharing Your Opinion
3. KashKick
KashKick is a rewards platform where you can get rewards for doing things like answering questions and playing games online. You can then turn these rewards into free PayPal money.
They have games like Monopoly GO, Yahtzee, Bingo Blitz, Scrabble Go, and others where you can earn $100 or more per game.
You need just $10 to cash out.
Sign up for KashKick here.
4. Ibotta
Ibotta is an app that gives you money back when you buy groceries. Just upload your receipts after you shop to earn cash that you can use as free PayPal cash.
Here’s how Ibotta works:
Browse offers – Check the Ibotta app to see what cash back offers are available before you go shopping (like for granola bars or toothpaste).
Shop in store – Go to the store and make your purchases.
Upload your receipt – Take a picture of your grocery receipt using the Ibotta app on your phone to earn cash back.
Some examples of the cash back you might be able to earn include: $0.50 cash back for buying body wash, $3.00 cash back for buying laundry detergent, and $1.00 cash back for buying cereal.
You need $20.00 to cash out to PayPal in the Ibotta app.
You can join Ibotta here.
5. Upside
Upside is an app that gives you cash back when you buy gas at certain gas stations. You can earn about $150 per year in cash back. Not all gas stations nearby are part of the app, but many are, so you’ll likely find some that qualify near you.
When you use the app for the first time, you can get a higher cash back amount to help you get familiar with it. In my first experience with the app, I received $0.74 back per gallon. I bought 12.62 gallons of gas and saved $9.33 just by using the app for the first time. It’s super easy and was a no-brainer to use.
Getting cash back on your gas is nice, especially with how expensive gas is these days!
To complete a PayPal cash-out on Upside, you need just $1.00 in your account.
You can sign up for Upside here.
6. Sell your old phones on Decluttr
Decluttr is a website where you can sell your old phones, CDs, DVDs, books, video game consoles, and more. It’s one of the most popular places to buy and sell electronics and tech items because they pay well and quickly.
Here’s how Decluttr works:
Open the Decluttr app and get a free valuation for the items you want to sell. It takes just a few moments to see what your item is worth.
Tell them the make, model, and condition of what you are selling. If you’re selling DVDs, CDs, or games, then you just enter your barcode or take a picture of the barcode with the Decluttr cell phone app.
If you’re satisfied with the offer for your item from Decluttr, just find a box that will keep it safe during shipping. Pack the item in the box, and Decluttr will provide a free shipping label. Simply print out the label and tape it to your box to send it off.
Finally, once Decluttr receives and checks your item, you’ll get paid the next day through direct deposit to your bank account or PayPal.
You can check out Decluttr here.
7. American Consumer Opinion
American Consumer Opinion is a site where you can take online surveys and earn points.
Their surveys pay around $1 to $5 each and once you earn enough points, you can redeem them for free PayPal money.
You need at least 1,000 points before you can withdraw and get free PayPal cash.
Click here to join American Consumer Opinion.
8. Survey Junkie
Survey Junkie is a paid online survey site where you can earn free PayPal cash for answering paid online surveys.
You can earn around $40 in free PayPal cash each month by completing around three short surveys each day.
You can redeem your points for free PayPal money starting at just $5 or 500 points.
Please click here to sign up for Survey Junkie.
9. Branded Surveys
Branded Surveys rewards you with points for answering survey questions. Surveys typically take 5 to 15 minutes and pay between $0.50 and $5.00 each. You can redeem these points for free PayPal cash.
You might have noticed there are several survey sites listed here. Companies pay you to answer questions because they want to improve their products and advertising. By understanding more about you, they can make better decisions. The best part is that these surveys are simple to answer, and you can join as many survey sites as you like.
You can click here to join Branded Surveys for free.
10. PrizeRebel
PrizeRebel is a website where you earn points by taking surveys, watching videos, and referring new members. You can redeem these points for free PayPal cash.
Just a few days ago I logged in to PrizeRebel, and I realized that I had enough points for around $150 in free PayPal cash. I redeemed them all at once, and now I have some nice extra spending money!
On PrizeRebel, you can get free $5 PayPal cash for 500 points. You can also choose any custom amount to redeem as well in PayPal cash.
Click here to sign up for PrizeRebel.
11. PayPal Honey
PayPal Honey is a free browser extension that automatically finds and applies coupon codes for you when you shop online. By using it, you earn points that you can redeem for extra money.
You can redeem your points for cash, gift cards, or free PayPal shopping credits.
Sign up for PayPal Honey by clicking here.
12. Rakuten
Rakuten lets you earn cash back on your everyday purchases from over 3,500 stores like Target, Walmart, Lululemon, Macy’s, Lowe’s, and Best Buy. When you make a purchase, you get a percentage of your spending back in cash.
When you shop through Rakuten, you get cash back as a percentage of what you spend. For example, if a store offers 5% cash back and you spend $200 there, you’d earn $10.00 in rewards in your Rakuten account.
You can receive your earnings via a check or PayPal once every quarter.
I have received over $1,000 in PayPal cash from Rakuten over the years. It’s a no-brainer if you want to easily save money when shopping online.
You can sign up for a free account on Rakuten here.
13. Find free PayPal money giveaways
If you’re looking to earn free PayPal money, entering sweepstakes and giveaways can be a fun way to try your luck. Companies host giveaways to attract new followers and keep existing followers and customers excited about their brand.
You can find free PayPal money giveaways by searching and/or following related hashtags on social media, such as #freepaypalmoney, #giveaway, #giveawayalert, and #freebie.
You can also follow online sweepstakes websites that list current giveaways.
Entering giveaways doesn’t guarantee free PayPal cash since they’re contests, but it’s quick and easy. I used to spend about an hour a week entering giveaways and have won gift cards and cash prizes.
14. Honeygain
The Honeygain app pays you up to $30 a month to share your internet connection with companies that use it as a tower.
You’re paid based on the amount of traffic that goes through your connection, earning $1 for every 10 GB of traffic.
Please click here to sign up for the Honeygain app.
15. Prime Opinion
If you want to learn how to get free money on PayPal, then Prime Opinion makes that possible with easy minimum threshold payout amounts to reach. You can get free PayPal cash starting at just 500 points, which is $5.
Prime Opinion is a survey website where you can earn money by sharing your opinions from home. They have lots of surveys available, and when I logged in recently, I had almost 50 surveys that I could take right away.
Please click here to join Prime Opinion and get up to a $5 free bonus.
16. Five Surveys
Five Surveys is a market research company that pays you to complete surveys. You just need to complete five surveys and then you can earn $5.
I signed up for Five Surveys myself to test it out for you. One thing I really like about Five Surveys is the number of available surveys. On the first day, there were 42 surveys I could start with, and more are being added all the time.
To withdraw from your Five Surveys account, just choose your preferred method. Options include PayPal cash, bank transfer, Venmo, and gift cards.
Please click here to sign up for Five Surveys.
17. Dosh
Dosh is a quick and simple app that automatically gives you cash back when you shop at certain stores like Costco, Sam’s Club, AT&T, American Eagle, and over 10,000 other companies.
Just link your debit or credit card (or even your Venmo or bank account) to the app, and everything else is handled for you. When you shop and pay with your linked card, you’ll automatically receive cash back into your Dosh account, which you can then transfer to your bank or PayPal account.
Once you accumulate $15 in your Dosh account (this is the minimum payout threshold), you can transfer it to your bank, PayPal, or Venmo. Alternatively, you can choose to donate your cash back to charity.
Recommended reading: 14 Best Apps To Scan Receipts for Money
Frequently Asked Questions
Below are answers to common questions about how to get free PayPal money.
How do I get money from PayPal for free?
You can earn free money on PayPal by completing online surveys, watching videos, selling your old stuff, and getting cash back when shopping online.
How do gamers receive PayPal funds by playing online games?
Apps like KashKick will pay you in points to play their online games. The points that you earn can then be redeemed for free PayPal funds straight in your personal PayPal account. YouTubers can also get paid to play online games and stream what they are doing.
What methods are available to secure a quick $10 on PayPal?
You can quickly earn $10 on PayPal by completing tasks such as taking surveys, reading emails, or shopping online through websites like Rakuten. These sites allow you to cash out once you reach a minimum amount. You can also become a freelancer on Fiverr and get paid in PayPal cash for hard or simple tasks. This wouldn’t be free money because you would have to work for it, but it is another option.
How do I check my PayPal balance?
To check your PayPal balance, you will have to log in to your PayPal account. Right after you log in, your PayPal balance will be listed for you to easily see.
Can you get PayPal money right away?
Some platforms may pay instant payouts to your PayPal account, while others may have a processing time or a minimum threshold before you can cash out. Always check the payout terms of the website or app you’re using to understand how and when you can access your earnings. Sometimes, it may take a couple of days before it lands in your personal PayPal account.
If you really need money right away, then another option may be to ask someone that you know for help or to ask for donations.
Best Ways To Get Free PayPal Money
I hope you enjoyed this article on how to get free money on PayPal.
Getting free PayPal money is great because it is just like extra cash. You can pay for your online purchases with it at almost all stores, and PayPal also has the PayPal Debit Card (so, this is kind of like getting a free PayPal gift card), so that you can buy things in-store too. Or you can also transfer it to your bank account and withdraw it just like cash.
Now, there are PayPal cash scams out there, so I do recommend that you be careful. If you are ever suspicious, do as much research as you can.
I have personally used many of the sites above and have earned well over $1,000 in free PayPal money over the years for doing things just in my spare time.