How to Save for a Down Payment
The down payment is often the biggest hurdle between renting and owning. With a clear target and a steady plan, it's more achievable than it feels. Here's how to approach it.
How much do you really need?
The classic figure is 20% of the home price, which lets you avoid private mortgage insurance and lowers your monthly payment. But many buyers put down less — some loan programs allow far smaller down payments. More down means lower monthly costs and less interest; less down means buying sooner. There's no single right answer, only the trade-off that fits your situation.
Turn it into a monthly number
A big lump sum is intimidating; a monthly savings target is not. Decide your goal and your timeline, then work backward to the amount you need to set aside each month. A concrete monthly number is far easier to stick to than a vague "save more."
Where to keep it
Money you'll need within a few years shouldn't be in the stock market, where a downturn could hit right when you want to buy. A high-yield savings account or short-term CD keeps it safe, accessible, and still earning some interest.
Build your plan
Use the savings goal calculator to turn your down-payment target and timeline into a monthly amount, and the home affordability calculator to see how a bigger down payment changes the home price you can reach. Seeing both together makes the goal feel real.
Educational information only — not financial, tax, or investment advice.