QUICK WAYS TO SAVE MONEY FOR A DOWN PAYMENT
How much do you really need to make a down payment on a house? On average, 20% down is the average mortgage home buyers expect and contribute to get the most affordable rates on their mortgage loans. But not everyone who dreams of owning a home can afford to set aside one fifth of the home’s asking price and will usually choose to seek out low down payment loans instead. So whether you’re a novice home buyer looking to put down three percent or an investment pro ready to drop twenty percent towards your home, here are 3 great ways to save money for a down payment.
1.) Cut more, save more
Can you squeeze more savings out of your cellphone plan? What about getting a cheaper plan on your auto insurance? Anytime you can reduce the costs of your monthly expenses, take that little extra that you’re saving and bank it into your savings account. Got a raise or a bonus coming up? Pretend like it never happened and have the difference between your old and new paychecks automatically transferred into your down-payment savings in a virtually painless way.
2.) Establish an account: Build your down payment savings by setting up a designated account that pays the highest interest possible to get more bang for your buck. It’s important to set up an account solely for your down payment so as not to be tempted to take money out for other uses. It’s also recommended that you establish an automatic draw that automatically funnels money monthly, bi-monthly or weekly from your checking account.
3.) Get help: There are hundreds of down-payment-assistance programs that exist to help buyers come up with the costs associated with home buying. According to RealtyTrac, there are 2,290 available programs across the country. Sites like Down Payment Resource are designed to help connect people with hard to find financial resources and helps deliver a list of programs for which you may be eligible for and contact information for participating lenders in your area.
If you’d like more information about saving money on a down payment, or if you want to buy a home in Tucson AZ, please contact the Simply Property Management-Paielli Realty, Inc. team today. We can assist you in securing the best deal possible for your new home or investment property.