Saving for a Down Payment
Saving for a down payment is often the biggest hurdle to homeownership. Setting a clear goal and timeline is the first step.
Use our savings goal calculator to determine exactly how much you need to set aside each month to hit your target down payment on your desired timeline.
Essential Calculators
Use these tools to run the numbers for this scenario.
Action Plan Checklist
- Determine the target price of the home you want to buy.
- Decide on a down payment percentage (e.g., 5%, 10%, or 20%).
- Use the savings goal calculator to find your required monthly contribution.
- Set up automatic transfers to a dedicated savings account.
Required Reading
Deep dive into the strategies behind this use case.
Key Terminology
Understand the financial and mathematical terms involved.
Frequently Asked Questions
Should I put 20% down?
Putting 20% down avoids PMI, but many buyers opt for a smaller down payment to keep cash on hand for emergencies and repairs.