Saving for a Down Payment

Dated: 03/15/2013

Views: 648

Are you itching to buy a home? Well here’s some fantastic insight from Trulia about how long it takes to save enough money for a down payment. The calculations assume saving 10% of your median weekly salary for the area and putting 20% down on a 2,000 sq ft home. According to Trulia with a median weekly salary of $783 and a price per sq ft of $108 it will take 9.9 years to save enough for a 20% down payment.

 

There are obviously many unique situations, but this data from Trulia really gives you a great overview of what it might take to save enough for a down payment if you sit in the generalized situation for the Charleston area.

 

Does 9.9 years sound too long? Here are some ideas to save enough money for a down payment faster.

  • Save your tax refund
  • Save more than 10% of your income
  • Get a mortgage requiring less than 20% down
  • Take on a temporary/seasonal second job or work overtime (this is a quick way to save money if you have the flexibility in your schedule)
  • Put part of your house fund in an IRA (Retirement accounts generally earn more interest than savings accounts and if you are a first time home buyer you can withdraw up to $10,000 for a down payment)

http://trends.truliablog.com/2012/08/how-long-will-you-need-to-save-to-buy-a-home-in-your-city/

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Hank Johnson

Hank Johnson, a graduate of The Citadel, has a proven track record as a CFO, businessman, Entrepreneur and real estate investor. Hank has been active and successful in the Charleston community for ove....

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