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Buying a Home? Best Ways to Save Your Down Payment

If you're ready to buy a home, you'll need enough down payment money to qualify for a mortgage. Find out how much you need, six tips to save faster, and the best places to stash cash for your new home. 

By
Laura Adams, MBA
7-minute read
Episode #455

Instead, tuck your down payment savings in a high-yield, FDIC-insured savings account. That insures your money will be completely safe, give you flexibility, and earn some interest to boot.

Online banks typically offer the highest interest rates because they don’t have as much overhead as institutions with local branches. However, local credit unions can be competitive—if you qualify for membership.

Also see: Bank or Credit Union—Which Is Better?

Online banks typically offer the highest interest rates because they don’t have as much overhead as institutions with local branches. 

Interest rates for online savings accounts change frequently, but here are some good options I recommend Satta check out that have no minimum balance requirements and pay close to 1%:

Making sacrifices to become a homeowner can bring many benefits—especially if you live in an area where owning is less expensive than renting. If you have a fixed-rate mortgage, every mortgage payment you make builds equity in your home, which is a terrific way to build your net worth and wealth.

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Mortgage Concept image courtesy of Shutterstock

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About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura's previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.