Save Money For A House In 6 Months

Before tackling mortgage interest rates know how to save money for a house in 6 months, home maintenance costs and utilities, every home buyer must first gather the funds for a mortgage loan down payment. The typical mortgage lifespan lasts 15 to 30 years, but for most house hunters looking to secure a home loan, those terms sound more like the amount of time it takes to save for a down payment. The research supports this.

Quentin Fottrell, columnist at MarketWatch, stated that it takes on average 12.5 years to save for a 20% down payment. This is despite the current personal savings rate being 5.6 percent. He cited statistics from RealtyTrac. Fottrell claims that it may take longer to save for the elusive 20% down because future increases in home prices are not considered.

It doesn't take long to save enough money for a down payment on a house. Two homeowners spoke with us about how they managed to overcome financial obstacles and make their own mortgage down payment in less than one year.

$30,000 Down Payment on a Mortgage in 9 Months

Chris Crook used four frugal strategies to save money for his first home purchase.

Understanding the challenges of saving for a mortgage while renting, Crook cut down on his day-to-day expenses, like subscribing to Netflix instead of paying a monthly cable bill. Crook said that he split his rent with a roommate in order to funnel more money into his mortgage savings. Crook also used the college money to purchase a used vehicle instead of buying a new one. Crook also saved money by choosing a hybrid fuel-efficient model. Instead of paying for a new car, he paid his mortgage down. Saving is important check out there how to save money each month.

He said that his expenses were extremely low. "Everything I did, I paid directly into the bank."

Crook was able to save money by being a salesman. He said that one of the best things about his job was the ability to travel and cut down on my expenses. He was reimbursed for his gas, meals, and lodging. His utility bills were often cheaper because he was away from home for long periods.

Crook kept up the same routine for nine months and managed to save $30,000 which he used to pay a 10% mortgage down payment on a $300,000.00 condominium with a 5-year adjustable-rate mortgage. Crook was able to achieve financial independence by starting his own website, InvestingIsland.com. Crook uses the same savings techniques to invest in three rental properties.

$5 Months of $30,000 Mortgage Down Payment

Louis Altman's strategy for lowering his mortgage payment is an excellent example of hard work paying off. Altman and his wife were able to save $30,000 on a $48,000 property by working overtime for just five months.

Altman was a telephone representative for a mutual funds at the time. During the tax season, "there were some weeks when my income was almost double what it normally would be," he said. Altman earned $10,000 more in pay than the $48,000 required to purchase a foreclosure. It was gutted to the studs and rebuilt. Then, Altman sold it for three times what he paid.