Saving for a down payment sounds like a big deal, right? And it is.  But it doesn’t have to be an overwhelming process or decision.  If making a plan to save for a down payment sounds like jumping in the deep end, don’t worry – here’s a few reasons WHY to stick to your goal, and HOW to break it into manageable steps to get you there.


Lower Monthly Payment:

The more you can put down on the house that first day, the less your monthly payment will be.  This is because of Private Mortgage Insurance, or PMI.  You no longer have to pay insurance once you’ve paid off 20% of your home’s value, so if you can put 20% down, you won’t even have to pay monthly insurance.  But even if you can’t put down 20%, the more you can put down, the less you have to pay monthly.

Afford a Better House:

When you have more saved for your down payment, it can actually allow you to have more options when you search for a new home. You can often afford the monthly payment for a more expensive house by lowering or eliminating your PMI.  If you have a smaller down payment, you have to factor in interest and insurance for the remainder.  With a better down payment, it eliminates some of that from your monthly payment, and can free up more options to look at a bigger house, or a better area.


Make a Goal Timeline:

When are you looking to buy a house? 2 years, 5 years, more?  Decide on a timeline. Then decide on about what you’re looking to save for your down payment.  Take that number and divide it by the months in your timeline in order to set a goal to save each month.

Check Your Spending:

Down payments are big sums of money, and we all get that.  But the best way to reach a big goal is through small steps.  Look through what you spend regularly and see if there’s anything you’re willing to cut, or could spend less on.  See if you can get a better cell phone rate, or switch companies.  End a subscription you don’t really need. Look for creative ways to move funds to your savings.  It might be easier than you think.


Hopefully these tips help you tackle saving for your down payment!  And if you have any questions, feel free to give us a call.  We’d love to help.




The Christian Mortgage Mom