Saving up the down payment for a home is a substantial hurdle, especially since most mortgage lenders want at least 20%. However, the bigger the down payment, the more affordable your interest rate will be. The tips below will help you get the money together for the down payment and make your dreams of homeownership come true.

Buying a Home? These Tips Will Help with Your Down Payment

1. Set Up Automatic Deposits

With the financial pressures of daily life, it’s easy to forget to transfer money into a separate account every paycheck. To ensure your down payment keeps growing, schedule automatic transfers to a savings account dedicated solely to your down payment.

2. Pay Off High-Interest Debts

If you’re paying 20% or more on your credit cards, paying these debts down first will help your down payment grow faster. With those accounts paid off, all the money you spend on interest now could go into savings. Your credit score might also go up, which may help you get a lower interest rate on your mortgage.

3. Track Your Spending

Tracking your spending for a couple of months will give you a detailed understanding of where your money goes and help identify where you can cut back. Do you have gym memberships or streaming subscriptions you don’t use? Do you eat out more than once a week? Diverting those funds into your savings instead can add hundreds of dollars to your down payment every month.

If you’re saving up for a down payment or looking for the right mortgage lender, Spirit of America Federal Credit Union offers competitive rates and friendly service. Since 1932, Serving the Lincoln, NE, area, they’ve earned a reputation for reliability and flexibility. Visit their website for more on their savings and mortgage loan services, get more financial tips on Twitter, or call (402) 467-1102 with any questions.