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Can You Really Save For A Down Payment With Just 10 Bucks A Day
Here's How Long It Will Take To Have A Down Payment By Saving $10 A Day
1. The high-yield savings accountThe first is a high-yield savings account like the one offered by Ally (you can find it through Bankrate), with an interest rate of .87%, compounding daily.With this account, it would take you between 11 and 12 years to save a down payment. At 11 years, you'd have $42,137; after 12, you'd have $46,170.
2. The investment accountNow, here's a twist: If you're putting the money you plan to spend on a home in an investment account rather than a savings account, your money could potentially grow much faster. Although, since it is invested, it's not a sure thing. If you were to invest your money in a portfolio with a conservative 4% annual return, it would take you about 10 years to save a down payment. At the 10-year mark, you'd have $44,756.(For the record, if you were to have a more impressive 6% return on your investments, it would take a little over nine years to save a down payment. At nine years, you'd have $43,278; after 10 years, you'd have $49,650.)
Yes it is possible to save up for a down payment using this method. However, with so many different options for loan programs you most likely will not have to save up 20% for a down payment. With good credit you will also qualify for more favorable rates on your loan, with a low down payment as well.
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As a Full Time real estate agent for the past 23 years, Sheryll has helped hundreds of home owners in Colorado buy and sell their homes. Sheryll's easy going, no pressure style and her in depth knowl....
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