Step 2 of 5 — Save for a down payment
Calculate how long to save your home down payment and how to get there faster.
Email your detailed breakdown with amortization schedule
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First-Time Homebuyer
Next Step: Estimate monthly payment
Months to goal = log(1 + gap × monthly rate / savings) / log(1 + monthly rate). Interest earned = (savings × compound months) - gap. HYSA compounds monthly at stated APY/12.
Minimum: 3% (conventional), 3.5% (FHA), 0% (VA/USDA). Recommended: 20% to avoid PMI. On a $400K home, 20% = $80,000.
Saving $1,500/month with modest interest: ~30 months. At $2,000/month: ~23 months. Use a HYSA earning 4-5% to accelerate growth.
20% avoids PMI (~$100-200/month extra). But putting 10% down and investing the rest can beat PMI cost if returns exceed mortgage rate.
High-yield savings account (HYSA) or money market fund for 0-2 year timeline. Short-term CDs or Treasury bills. Avoid stock market for near-term goals.
First-time homebuyers can withdraw up to $10,000 from IRA penalty-free. Roth IRA contributions (not earnings) can be withdrawn anytime tax-free.
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.