Worksheet: Save for a home

Use this worksheet to figure out how much you need to save for a home and see how long it will take

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Figure out how much you’ll need to save

First, work out how much home you can comfortably afford. Online calculators (Link: https://loans.bankofamerica.com/en/tools/affordability-snapshot.html?standalone=y) can help you figure this out.

Estimated home price

1. Estimate the down payment. If you have 20% of the home price, you won’t need to pay for private mortgage insurance. Multiply the home price by .2 to figure this amount.

Down payment

2. Closing costs are usually 2–5% of the home price, so multiply by .05. You can also use Bank of America’s Closing Costs Calculator (Link: https://www.bankofamerica.com/home-loans/mortgage/closing-costs-calculator.go) to help you estimate.

Closing costs

3. Estimate your monthly mortgage payment. Bank of America’s monthly mortgage payment calculator (Link: https://www.bankofamerica.com/home-loans/mortgage/mortgage-payment-calculator.go) can help.

Monthly payment

4. Estimate your property taxes and homeowners insurance. You may be able to use the seller’s current bill as a guide.

Taxes and insurance

5. Think about any extra costs such as new appliances, furniture or maintenance work. Include your expected moving costs.

Moving costs

Add the numbers from steps 1–5 to figure out what you need to save.

My home savings goal*

*Input this number in the time frame equation below.

Start budgeting to reach your goal

Look at your budget to see how much you save each month. From there, figure out how long it will take you to reach your goal.

Monthly budget

Note your monthly net income, then log your expenses and how much you save.

Monthly net income

Mortgage/Rent

Personal debt

Food

Transportation

Health care

Long-term savings

Insurance

Utilities

Clothing

Pet care

Dependents

Travel and entertainment

Personal care

Miscellaneous

Monthly savings*

*Input this number in the time frame equation below.

Time frame

(Your home savings goal – Any current savings) ÷ Monthly savings = Months until savings goal

If you want to reach your goal sooner, look at your monthly budget to figure out where you can cut back spending (Link: https://bettermoneyhabits.bankofamerica.com/en/saving-budgeting/easy-ways-to-save-money) in order to save more.

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The material provided on this website is for informational use only and is not intended for financial or investment advice. Bank of America and/or its affiliates, and Khan Academy, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment options.

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