How Long Does It Really Take to Save For a Down Payment?
Are you willing to wait seven years to save for a down payment? According to Zillow, that’s what it will take for buyers today, making it the longest to save for a down payment since the height of the housing crisis in 2008.
We know buyers are up against rising interest rates and home values outpacing income growth. But, is seven years really the new normal?
20 percent down not required
When we take a closer look, Zillow’s study (and many others like it) are assuming a 20 percent down payment. Yet, the average first-time homebuyer puts down only about six percent today. Furthermore, there are many loans that offer very low down payments to buyers. In fact, the wealth and diversity of low down payment options available today may be the most important reason that first-time buyers still account for nearly one-third of home sales despite higher home prices. So, don’t let that seven year savings plan scare you.
The real answer to how long it takes to save for a down payment? It depends. Empowering yourself with information about your home financing options can give you an edge and get you in a home much sooner than the headlines tell you. keep reading
The post How Long Does It Really Take to Save For a Down Payment? appeared first on Down Payment Resource.