How to Save For a House Down Payment

Thanks to the subprime mortgage mess, no downincluding:
payment homes are a thing of the past. Actually this is- Save Your Change: Small change can add up to big
great news for potential homebuyers as it shows thatsavings. Stuffing your piggy banks daily with loss
lenders are taking a bit more responsibility by offeringpocket change or stashing away ever $5 bill you
less risky mortgages. Despite that silver lining, thosereceive in change can add up to big bucks in very little
interested in buying a house and taking advantage oftime.
the historically low interest rates need to have a lump- Borrow from Uncle Sam: Although they are not
of cash to begin the house buying process.advertised, both state and local governments may
Those thinking about taking the plunge should starthave programs to assist those in need to secure the
working towards building the down payment nest eggmoney needed for a down payment.
now. Banks favor consumers who invest their own- Bank of Mom: Parents wanting the best for their
money into buying a home as it the act helps provechildren may be more then willing to loan junior the
that buyers have vested interest in the purchase.required funds for a down payment. Taking advantage
There are additional perks to making a large downof their generosity is not cool, so make sure you pay
payment on a home. Lenders may offer you betthem back or it may be the last time they throw you a
interest rates (that can save thousands of dollars overfinancial bone.
the life of the loan), mortgage insurance cost will be- Bank Your Tax Refunds: The average 2010 tax
lower (as you will have a smaller debt to cover) andrefund was over $3,000. Saving those for a couple of
you will already have some much-needed equity inyears while earning compounding interest may be just
your home.the thing you need to finance your purchase.
Coming up with the large chunk of change is not anSaving for a down payment is only one essential step
easy task. However there are some creative waysin the home buying process.
you can get the money you need to buy your castle