Simply put, it’s just common sense that the larger your down payment, the less your mortgage payment will be and the less interest you will have to pay over the 10 to 30 year term of your mortgage period. The objective here is to give you valuable tips to get you in a home sooner through making some informed choices of how you save money.
Why Wait for the Right Time or Conditions?
When saving for a house down payment there are many sources and ideas to get your down payment started, including:
Finding Alternatives
Cancel your gym membership and workout from home, Cancel your home phone line and use voice over internet phone services to reduce your utilities bills and save that money towards your down payment. Look at Internet based tv as a way to reduce your tv fees like Netflix, Apple TV, Amazon Fire, etc. Look, you’re spending that money already. Just redirect it to savings for a home.
Part Time Jobs
Perhaps find a part time job in your community to augment your savings just until you reach your goal
Being Competitive
Consider coupon clubs, Costco instead of shopping once a week at the expensive local grocery. Buy your meat in bulk and freeze it, find local produce in farmers markets. Make it a competition in the family to see how creative you can be at raising money.
Increasing Your Savings
Consider having a high yield savings account that only allow you to deposit funds and not take them out without meeting a specific term of time like 6 months or 12 months or certificate of deposits each time you raise a $1000 lock it in so you are not tempted to spend it on something you don’t need, try to target your month that you want to buy a home as your goal for withdrawal.
Giving Yourself Rewards
When you obtain a micro goal, of say a $1,000, to celebrate with a special supper or treat yourself to a movie night but don’t go too overboard like going away to an expensive spa for the weekend.
Personal Savings
Review your checking and savings accounts. Can you set aside any extra money from each paycheck?
Gifts from Family
Are there any family members willing to give you a non-interest loan for the deposit or just an outright gift?
Assets
Do you have anything you can live without that has value and you can sell towards saving for a house, empty out the garage and buy yourself an extra freezer for meat or freezing so you can only do your main grocery items once a month rather than weekly now that you’ve emptied the garage you have no more excuses left- You will even have space for working out?
Keep the Taxes
Instead of going on a shopping spree with your tax refund put aside some of that money towards your down payment.
Purchase Affordability Calculator
Some Down Payment Options to Consider
Depending on the loan program you may have no down payment or all you might need is 3.5% to 5% of the purchase price of your home. For a home that costs $300,000, that’s only $10,500 – $15,000.
Check with your Mortgage Advisor for the many flexible down payment options to fit your unique situation.