Photo Credit: minnesotafirsttimehomebuyer.com
Down Payment
Are you and your spouse looking to buy a home? Dave Ramsey gives some great guidelines to follow to keep your overall debt low.
Ramsey says "If you can’t pay cash for your home, go for 20% or more down payment to avoid private mortgage insurance (PMI)"
He also states, in order to save tens of thousands of dollars or more "You want a 15-year fixed-rate mortgage that’s no more than 25% of your monthly take-home pay."
And that the 25% should include, principal, interest, property taxes, homeowner's insurance and HOA fees (if any). He provides a great mortgage calculator on his website as well so you can play around with the numbers. mortgage calculator
How long will it take you to save for a down payment? Well, it's kind of up to you. Check out this possible scenario he provides:
Cut your expenses | $15,000 |
Pause retirement contributions | $12,000 |
Earn extra income from side hustle | $12,400 |
Sell stuff / skip splurges | $4,000 |
Total savings | $43,400 |
You can master your money... and I can help!
Contact Michelle Serna by filling out the Contact Me form to the right of this post.
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