Posted on 05/05/2021 11:54:01 AM PDT by jroehl
I want to save up $20,000 in the next 4 years to buy a house. If my bank offers me a savings plan with an APR of 2.5% when I make monthly payments, how much will I need to save each month?
On the order of a bit more than $400/month, ignoring interest.
In my head.
$813.54
Be careful that in the 4 years it takes you to save $20,000 housing prices will have gone up over $40,000 in your area
Interest rates for savings are so low that compound interest is a little factor.
So 20,000 divided by 48 months is about 420 a month. If you cannot save more than $100 a week for 4 years you may not be able to afford a house.
Start looking for fixer-uppers and repos now - and build up with sweat equity.
How old are you and what do you do for a living?
Oh, sorry, I thought you said two years. For four years, it’s $396.61.
You should answer your OWN homework assignments for the introductory Accounting class you are taking at community college, instead of going to a random website....
This is not a financial site of which there a plenty.
I suggest you find one, and fast as you are obviously a prime target for scammers.
Aw, why’d ya have to give it away?
See #7
Depends. When is that interest applied to your account? Some accrue at x-percent per year, but will monthly, quarterly, semi-annually, annually. Of course, at 2.5%, interest would be piddling anyway. Just figure 5k/year or $417/month.
Haha, I was gonna tell him he better save more because in four years that house may be worth double.
Nothing. Live for today.
Where can you buy a house for $20,000?...................
Just consider any measly interest the bank will give you as a bit of pocket money and save $420.00 a month ($20,000.00 divided by 48 months). I don’t know about where you are, and I don’t mean to sound discouraging, but are you sure you’re going to be able to buy a home with $20,000.00 down....especially in four years? OTOH, maybe things will have corrected by then and these crazy prizes will be history.
If your intended downpayment on a house is $20,000, make sure then you are getting a house for $100,000 or less. Otherwise, you will be subject to PMI. Unfortunately, you might be looking at a condo or mobile home for your first house. But that's a start.
Hopefully you are putting aside money for your retirement years as well.
Considering the dollar will become nearly worthless soon, due to pResident Dementia’s inflation bonanza, a LOT per month. Follow a Brink’s truck around and hope one of the back doors flies open and bags of cash tumble out.
Thanks for the website I could not find!
Thank you!
I hope you’re young enough to enjoy it, when you do get it. Never owned a home. Now in my 70’s, and it’s a blessing I don’t. One less thing my two sons will have to deal with when I’m dead.
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