Money & Finance
First Home Buyer Planner
Enter the home price, loan type, closing costs, moving and furniture, and a cash reserve, and the page works out the total cash you need before closing, the monthly mortgage payment, and how many months of saving stand between you and the keys.
How it works
Behind the numbers
The down payment follows the loan type: conventional 3 percent, FHA 3.5 percent, VA and USDA 0 percent. Closing costs default to 3 percent of the price, inside the usual 2 to 5 percent range, and both are editable. Moving and furniture are flat amounts you set. The reserve is a number of months of the mortgage payment, so it grows with the house instead of staying a fixed dollar figure.
The monthly payment is principal and interest on a 30-year fixed loan at the rate you enter. It leaves out taxes, insurance, PMI and HOA dues, and the page says so, because those vary by state and lender. The default house, 450,000 dollars at 6.5 percent with 3 percent down, pays about 2,759 dollars a month in principal and interest, so a three-month reserve is about 8,277 dollars.
The plan is simple arithmetic once the total is set. Total cash is down payment plus closing plus moving plus furniture plus reserve. The gap is that total minus what you have saved, floored at zero. Months to save is the gap divided by your monthly saving, rounded up, and the target month is today plus that many months. At the default numbers the total is about 42,777 dollars, the gap from 20,000 saved is about 22,777, and 1,500 a month closes it in 16 months.
FAQ
Questions, answered
How much cash do I need to buy a house?
More than the down payment. A 450,000 dollar house with a conventional 3 percent down loan takes 13,500 dollars down, 13,500 in closing costs at 3 percent, 2,500 to move, 5,000 for furniture and about 8,277 for a three-month reserve, or about 42,777 dollars in total. Enter your own price, loan type and costs and the page totals them for you.
How much is the down payment on a first home?
It depends on the loan. A conventional loan can go as low as 3 percent down, FHA is 3.5 percent, and VA and USDA loans allow 0 percent down for eligible buyers. On a 450,000 dollar house that is 13,500, 15,750 or 0 dollars. A smaller down payment means a larger loan and a higher monthly payment, and conventional loans under 20 percent down usually add PMI.
What are closing costs on a house?
Closing costs usually run 2 to 5 percent of the price and cover the lender fee, appraisal, title insurance, recording fees and prepaid items. State transfer taxes and recording fees vary widely, so the page uses a national generic percentage and tells you to confirm the real number against your loan estimate. On a 450,000 dollar house, 3 percent is 13,500 dollars.
How much should I save before buying my first home?
Save the down payment plus closing costs plus moving and furniture, then keep a cash reserve of a few months of mortgage payments untouched until after closing. The default plan here totals about 42,777 dollars for a 450,000 dollar house. The page compares that total with what you have saved and turns the gap into a monthly plan.
How long does it take to save for a first home?
Divide the gap by what you can save each month. With 20,000 dollars saved toward a 42,777 dollar total, the gap is about 22,777 dollars, and 1,500 dollars a month closes it in 16 months. Raise the monthly amount or lower the price target and the page recalculates the month you would be ready.