Here are three ways you can save money to make a down payment.
Are you wondering how you can get a down payment together without selling your house? Here are three options for how you can make that happen:
1. Set a savings goal. If you aren’t going to buy a house for 2 to 3 years, take 5% of your desired budget for your next new house, divided by 36 months. Start saving little by little, and it will add up in no time.
2. Get a home equity line of credit. It’s like taking out a credit card that taps into the equity of your home. This is another great low-cost option, although it takes 60 to 75 days to put in place.
3. A cash-out refinance. This is a good option if you have solid equity in your home. It allows you to refinance your existing mortgage and pull out a chunk of money that can be used towards your down payment. Ideally, you want to use this strategy when rates are equal to or lower than the rate you have on your existing mortgage.
If you have any questions about these strategies, don’t hesitate to reach out to me by phone or email.