Many people save for a down payment for several years. After all, the more you put down, the less your monthly payment will be. Here are some ways to save so your wallet is ready when you are!
- Transfer a fixed amount into a special savings account each month. By setting up an automatic direct deposit into a separate account and committing to never dip in to these funds is the most popular and convenient way to start saving for a home.
- Skip vacations for a year. Doesn’t sound like much fun but can mean significant savings toward a down payment.
- Lower your expenses. Review expenses and reduce and/or eliminate. Put the savings into your special savings account.
- Reduce your high interest debt. Pay off credit cards one at a time beginning with the ones with the highest interest rates. Once the balance is paid, close the card and move on to the next one. Also, consider transferring balances to the card with the lowest rate.
- Get a second job. Even a temporary second job can help make substantial contributions.
- Look into down payment assistance. There are organizations out there that might help you with your down payment. Do some research and find out if you qualify.
- Sell some of your investments. Think of this as a way to move some of your current investments into another one – a new home!
- Borrow from your retirement plan. Look for penalty-free withdrawals for home buyers; many 401K plans allow employees to borrow for this purpose.
By following these tips to save, you will have enough for a down payment in no time!