When considering a mortgage, one of the most important decisions you’ll make is how to handle the down payment. The higher your down payment is, the lower your loan and monthly payment will be. So, what can you do to save?
- Transfer a fixed amount into a savings account every month.
- Even if it’s a small amount, set up an automatic direct deposit and commit to never use these savings for any purpose other than your down payment! Be strong! Don’t be tempted to use that money. Focus on your end goal – your dream home!
- Get a second job
- Consider temporary jobs, such as car ride services or working from home jobs. Then save those earnings by placing them in a savings account.
- Borrow from your repayment plan
- Many 401(k) or profit-sharing plans allow employees to borrow against their savings to purchase a home. Ask your employer how your plan works.
- Reduce your high interest rate debt.
- Consider Paying off your high interest rate credit cards first and when you’ve paid the entire balance, proceed to pay off the next card. But don’t close the zero balance accounts. That may affect your credit score!
- Lower your expenses
- Write down all your monthly expenses and see what you can cut back on. Maybe you don’t need that daily latte or that monthly subscription box. Take that money that you will spend otherwise and put it in your savings account. The money will add up quickly.
Finally, always remember your end goal! You too can be a homeowner and YHN Mortgage can help you. Call us, and we can offer you more tips on how to save for a downpayment.