Down Payment Savings Planner
"Someday" isn't a savings plan. Pick a target home price and down payment percentage, tell us what you've saved and what you can set aside monthly — we'll show you the month you'll be ready.
Your savings timeline
How it works
The math is simple but motivating: your balance grows each month by contributions plus interest on everything already saved. At a 4% APY, $800/month becomes roughly $53,000 in five years — about $4,600 of that is interest you didn't have to earn.
Two things matter more than the interest rate, though. First, don't forget closing costs: budget another 2–5% of the home price on top of the down payment, or you'll hit your "goal" and still be short at the closing table. Second, keep your emergency fund separate — lenders like reserves, and houses love surprise repairs.
If the timeline feels long, remember the levers: a smaller down payment (FHA's 3.5%, or 5–10% conventional), down payment assistance programs in your state, or a slightly lower target price. Run the affordability calculator to sanity-check the price you're saving toward.
Frequently asked questions
How much should I save for a down payment?
20% avoids PMI on conventional loans, but FHA allows 3.5% and VA allows 0%. Many buyers succeed with 5–10%. Also budget 2–5% of the price for closing costs on top of the down payment.
Where should I keep my down payment savings?
A high-yield savings account or money market account: safe, liquid, and currently paying around 4%. Avoid stocks for money you'll need within a few years — market dips don't wait for your closing date.
Do I really need 20% down?
No. It's the threshold that avoids PMI, not a requirement. Waiting years to hit 20% while prices rise can cost more than the PMI you'd pay by buying sooner.
What are down payment assistance programs?
State and local programs offer grants or low-interest second loans for down payments, often aimed at first-time buyers under income limits. Search your state's housing finance agency to see what's available.
Should I count my emergency fund toward the down payment?
No. Keep 3–6 months of expenses separate. Lenders also like to see cash reserves after closing, and raiding your safety net for a house is how surprise repairs become debt.
How does compound interest help my savings plan?
Even modest interest adds up: at 4% annual return, $500/month grows to about $33,000 in 5 years instead of $30,000 — the interest covers a meaningful chunk of closing costs.
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