Saving for a home can take years. However, once you’ve set yourself a savings goal and are ready to buy, Credible’s online mortgage calculator can help you figure out your monthly payments and see how much you need to save before moving ((iStock)
Homes are expensive and it can take years to save money to buy. In fact, the average sales price of a new home was $ 346,400 in January 2021 US Department of Housing and Urban Development (HUD) and US Census Bureauand the average sales price was $ 408,800. For first-time home buyers, it can be daunting to commit to a purchase price in this area. However, mortgage rates are low so it is possible to buy real estate and receive monthly payments equal to or lower than what you pay as rent.
Once you’ve set a savings goal – including a down payment and closing costs – and are ready to buy, Use an online mortgage calculator to find out your monthly payments and understand how much more you need to save before taking a step.
Follow this guide to discover the seven ways to save Money for a house::
- Save additional money (e.g. through stimulus checks, tax returns or year-end bonuses).
- Take advantage of low to zero mortgages
- Consider a credit card for wire transfer
- Make use of your retirement plan
- Automate your high-yield savings account
- Find a roommate
- Reduce the unnecessary
And when you’re ready to get a mortgage go to Credible where you can Compare multiple lenders and interest rates in one place without affecting your creditworthiness.
1. Save additional money (e.g. through stimulus checks, tax returns or year-end bonuses).
The third round of stimulus testing President Biden’s $ 1.9 trillion coronavirus relief plan has given up to $ 1,400 for individuals to millions of Americans.
Your stimulus check, an overpayment on your 2020 tax return, or an unexpected year-end bonus from your employer are great options for saving on a down payment on your new home purchase.
2. Take advantage of low to zero mortgages
Save money for that Standard 20% deposit could be an uphill battle. Many first-time buyers go with one FHA loans because they only require a small down payment and have less stringent credit requirements.
Jason Gelios, Real Estate Agent at Community Choice Realty and Founder of the AskJasonGelios Real Estate Show, says, “Even with limited savings, first-time home buyers can benefit low to zero mortgagesand use cash to cover upfront expenses like home valuation and inspection. “
While it is generally true that the best mortgage rates and terms are reserved for applicants who have good credit history and history and can afford the 20% down payment, taking advantage of low or zero down payment mortgages can help you get a home purchase with no hassle of making cash in advance.
In the meantime, work on your creditworthiness to get the best interest rates and compare all of your mortgage options withVisit Credible to find the best rates and lenders.
3. Consider a balance transfer credit card
If you have large balances on high yield credit cards, consider transferring them to one Credit transfer credit card. These cards usually offer lower interest rates during a promotional period. You may also get better terms than your current credit cards, and you can consolidate your credit card debt to make your monthly payments easier.
Note that you may have to pay a transfer fee to begin with and may receive a higher interest rate after the promotional period ends. Your Credit score could be compromised due to the credit card approval process.
Don’t get stuck and pay more interest. Instead, Visit an online marketplace like Credible to view multiple 0% Intro APR Balance Transfer credit card options at the same time.
4. Make use of your retirement plan
Orlando Miner, CCIM and CEO of Miner Capital Funding, recommends using your Retirement 401 (k) as part of your overall plan. “Retirement plans are a great way to get money on your mortgage, and many plans offer a mortgage-only penalty-free option.” Note, however, that you can only borrow up to $ 50,000 or half of the vested balance (whichever is lower) on your 401 (k) account. You must repay the loan with interest, and some 410 (k) must be repaid within five years.
5. Automate your high yield savings account
A High yield savings account Usually pays higher interest than a traditional savings account. You can achieve your savings goal by setting up a high yield savings account and making sure that part of your paycheck is automatically deposited into that account so you are not tempted to spend it elsewhere. You might even consider opening (and automating) a separate savings account to save money on your new home.
Before opening an account, Visit Credible to make more money and find a high-yield savings option that best suits your goals.
6. Find a roommate
If you pay the rent on your own, you can look for a roommate. That way, you can split your monthly payments, utilities, and other recurring expenses in half and deposit the money you save into an interest-bearing account. Save $ 1,000 a month and at the end of the year you will have $ 12,000 in the bank plus interest.
You can also check out here Interest Rates and High Yield Savings Account Options that fits your situation in the credible market.
7. Reduce the essentials
One of the best ways to save on a mortgage is to cut down on daily expenses like gym memberships, magazine subscriptions, streaming services, or restaurants.
Justin Dwyer, co-founder of Cambio, a second chance digital banking app, says, “If you stop at a drive-through place every day, take a different route so you don’t see that storefront. You are less likely to have cravings if you don’t see what you crave the most. “
Because home buying is expensive and you can find out where to live, what type of home to buy, and in what price range, you can better determine what down payment you can afford and what your future mortgage payments will be.
Talk to your financial advisor while you prepare to save money on a home. Credible can also put you in touch with experienced loan officersTo answer all of your mortgage questions.
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