FinEd/FinLists/Saving for a Down Payment
Checklist #09 · Savings

Saving for a Down Payment

Break down your down payment goal into a monthly savings system with clear targets, timelines, and strategies to accelerate accumulation.

22 action items~15 min to complete4 sections
0%
0/19
completed
Overall progress0 of 19 items
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Set Your Target

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Research median home prices in your target areaAction
Decide on your target down payment percentageKey
Add closing costs to your target (2–5% of home price)
Add a 3-month post-purchase reserve to your total targetWatch out
Set a target date and calculate required monthly savingsKey
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Choose the Right Account

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Open a dedicated high-yield savings account just for the down paymentAction
Verify FDIC insurance and check the current APY
Avoid investing down payment funds in the stock marketWatch out
Consider I-bonds for funds not needed for 12+ months
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Accelerate Contributions

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Automate monthly transfer to your down payment account on paydayKey
Route 100% of tax refunds to the account
Apply bonuses and irregular income directly
Audit subscriptions and redirect savings monthly
Research and apply for state/local first-time buyer assistance programsAction
Ask about employer homebuying assistance benefits
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$3,100
Average U.S. tax refund — 3 years of refunds can fund many down payments
4.8%
Average HYSA APY available in 2024 — put your savings to work
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Protect Your Progress

0/4 completed

Define this account as off-limits for non-housing purposes
Track progress monthly and recalculate timeline if contributions change
Monitor target market prices quarterly and adjust target if needed
Keep down payment funds liquid (accessible within 3 business days)Watch out