What do I do with down payment savings Reddit?

Just keep it in a high interest savings account. It’s boring but it works. I would recommend against investing the money. If you do invest the money I would recommend being much more conservative and going 80 % bonds, 20 % equity.

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Also, where should I save my down payment?

When it comes time to save your house down payment, where you put your money will depend on how long you’re saving and the price of house you can afford. For short-term savings, a simple high-yield savings account is your best bet. If you’re saving for years before, an investment or CDs are great alternatives.

Keeping this in consideration, how much should I save for a downpayment on a house Reddit? The exact amount you put down depends on your specific situation; try for 20% if you can do it, since it will give you better financing options. You will also pay less monthly with a larger down payment. You probably won’t get a better interest rate with a bigger down payment > 20%, so that’s not something to plan for.

In this manner, should I invest my house down payment?

Mortgage Rates Will Likely Stay Low

A drop in mortgage rates has made real estate more affordable for many. However, a rise in home prices while you wait to find the ideal home makes buying less affordable. Therefore, it’s really up to you to invest your down payment wisely.

How much is a house down payment Reddit?

You should get 20% down so you can avoid PMI and get a conventional mortgage. Closing costs vary, but between 2% and 5% is the suggested range. Then most would suggest having a fairly robust emergency fund on top of all this. Owning a house brings a lot more risk than renting so you need to be able to cover that.

How can I save for a down payment fast?

Top 10 Ways to Save for a Down Payment

  1. Transfer a fixed amount into a special savings account every month. This is the most popular—and convenient—way to save. …
  2. Skip vacations for a year. …
  3. Lower your expenses. …
  4. Reduce your high interest rate debt. …
  5. Borrow from a relative. …
  6. Borrow from your retirement plan. …
  7. Sell some of your investments. …
  8. Get a second job.

What is the 30 day rule?

With the 30 day savings rule, you defer all non-essential purchases and impulse buys for 30 days. Instead of spending your money on something you might not need, you’re going to take 30 days to think about it. At the end of this 30 day period, if you still want to make that purchase, feel free to go for it.

How much money should you save before buying a house?

Most real-estate experts will tell you to have at least 5% of the cost of a house on hand in savings to account for the down payment. But that’s only a minimum, and expectations can differ by community. In a city like New York, for example, minimum down payments are almost always 20%, no less.

How much of your savings should you spend on a down payment?

When determining how much to save for a down payment, setting aside as close to 20% of the home’s purchase price as possible is ideal. This way you‘ll pay less in interest and fees and start out with more equity in your home. But many homebuyers, especially first-time buyers, make down payments of less than 20%.

Should I wait until I have 20 down payment?

In terms of the benefits of a higher down payment, you’ll be getting a better rate because it means less risk for the lender. If you have 20% down on a conventional loan, you can avoid paying mortgage insurance at all, which cuts down on your monthly payment.

Is a 20 down payment worth it Reddit?

paying down principle to 20% will work, as will the value of the house increasing enough for the owner to have at least 20% equity as well. You’d just need an appraisal to prove it’s worth that much more before PMI can be dropped. … Of the payment will be higher by more than PMI maybe you buy sooner.

How much money should I have before buying a house Reddit?

Ideally you should have 10% down payment, plus enough for closing costs (figure roughly $5000) plus an emergency fund of at least $5000 (ideally 2-6 months salary, but lets be realistic here). It may be possible to purchase a house with a 5% down payment.

Where can I get the most house for my money?

Top 10 states to make the most money from investing in real estate

  1. Indiana. Indiana has many things going for it as a place to invest in real estate: the cheapest average property prices, good local purchasing power and home value appreciation. …
  2. Mississippi. …
  3. Idaho. …
  4. Alabama. …
  5. Missouri. …
  6. Tennessee. …
  7. Arkansas. …
  8. Ohio.

Can I use my stocks to buy a house?

The stock market can help you grow your savings to reach your investment goals, including saving up to buy a home. However, the IRS doesn’t allow you to exclude any stock income just because you used the proceeds to buy a home, even if it’s your first one.

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