You have to save $439.50 each month to reach your goal if you cover closing costs and the down payment.
What is the down payment?
A down payment is a sum of money that a buyer pays in the early stages of purchasing an expensive good or service.
You want to buy a house in 9 years.
The estimated cost is $175,800.00. You want to make a 20% down payment and closing costs are 7%.
The amount for the down payment:
175,800 x 20% = 35,160
The closing cost of house is;
175,800 x 7% = 12,306
Amount to save: 35,160 + 12,306 = 47,466
The monthly savings is;
9 years x 12 months = 108 months
47,466 / 108 = 439.50 savings per month.
Hence, you have to save $439.50 each month to reach your goal if you cover closing costs and the down payment.
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