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How to Save Enough Money for A Home Down Payment

Photo Source: NAR Newsline - National Association of Realtors

Want to buy your first house? Here is how to set aside your money.

According to CNN Money, your mortgage amount can run anywhere between 20% and 28% of your pre-tax monthly income depending upon the industry in which you work.

Though it can't account for every aspect, a homebuying calculator can assist you with determining what you can afford. You may also plan to save with a savings calculator.

Instead of limiting yourself to your bank's local options, consider putting about 25% of your savings into the stock market.Let's say that you are planning several years ahead. This action would allow your money to work faster towards your goal. You will want to minimize the risk of a downturn by protecting most of your savings account. That way your money is kept easily accessible and safe. Online savings accounts usually provide higher annual percentage yield (APY).

Seek out professional investment help from a certified financial planner and licensed real estate agent to figure out what stock options are best to use for your situation. 


Photo Source: NAR Newsline - National Association of Realtors

How to save enough money for a down payment on a home [CNN]