If you are buying a home on Long Island, you already know about those infamous two words…DOWN PAYMENT! Knowing that you are in savings mode, Charles Rutenberg Realty is here to help!
You may be saying to yourself, “I can afford the monthly payment, but the down payment, I’m not able to come up with.” Stop right there. Don’t let the down payment stop you. Everything in life takes some discipline, effort and work! Here’s a few simple ways you can speed up savings process:
- Don’t Buy What You Don’t Need! Ask yourself out loud, ‘Do I need this or want this?” Think of all the luxuries can you live without as you beef up your savings. For essential items, wait for sales. Shop at less expensive grocery stores andcompare prices per ounce. Be flexible.
- A Second Income. Working a second job for a year or two can quickly boost your down payment savings. Once you’ve covered your down payment, you can probably lose the extra gig.
- Don’t Rely Entirely on Yourself. Automatically deduct a set amount from each paycheck and add it to your savings account. Or ask your bank to routinely transfer money from checking into savings on a certain date each month.
- Cut up your cards. If you have more than one or two credit cards, consolidate. Use the cards with the lowest APR, and give the boot to your “spares.” You’ll be less tempted to charge!
- Cut Back on Student Loan Payments. If you’re drowning in student loan debt, you may be able to scale back on your student loan payments. Talk to your lender(s) about repayment options. Adjusting a repayment plan could lower your monthly student loan payments, giving you more room to save for a down payment.
- Monitor Your Spending. Don’t wonder where your earnings have gone at the end of every month. Start now by tracking your finances so you know EXACTLY where your money is going and how much you are saving.
- Ask about lease options. Some homeowners will let you lease toward future purchase, which can benefit them financially.
- Dip Into Your IRA. First-time home buyers can remove $10,000 from an IRA without penalty. While you still pay state and federal income tax (unless you have a Roth IRA), under some conditions this is a viable option for attaining down payment goal.
- Mom, Dad? Will your folks consider a financial gift toward your down payment? Each individual is allowed to give a gift of $10,000 per year to someone without the recipient paying gift tax. Or your parents might be willing to co-sign for a loan?
Be sure to consult with a financial adviser as you start your super-saving efforts. If you need a recommendation, contact us and we can help point you in the right direction.
Charles Rutenberg Realty Long Island
Latest posts by Joe Moshe (see all)
- Vote for Charles Rutenberg Realty, Inc. - November 15, 2017
- Tax Plan Should Also Include Local and State Tax Deduction to Benefit Homeowners - November 12, 2017
- Pam & Joe Honored as Heroes at CHI 25th Anniversary - November 9, 2017