Online Tools To Help You Save For a Downpayment

A few years ago it was common for lenders to offer 100% financing for many scenarios. Today it is extremely tough to buy a home without coming up with a down payment. (Those who qualify for a VA loan or USDA loan may still be able to borrow 100% of a property's value through those programs.) The best pricing is generally available to those who can put 20% down, but FHA loans offer competitive rates with as little as 3.5% down.

Whatever amount you hope to put down, it can be tough to save the money. Few aspiring home buyers have a lot left over every month to put into the "new home fund". Check out some of these online tools that may help you reach your goals sooner.

Budgeting Tools -
Mint.com is a very popular site that directly (and securely) accesses your financial accounts giving you a picture of your spending and savings in one location. You can also set budgets for different categories and be alerted when you go over your alloted budget. I actually use this service myself and find it incredibly easy and helpful. I set up the account and then left it alone for a couple of months. This let me see what our typical spending was and set up budgets to try to trim down some of the categories. Set up a goal within Mint to save for your downpayment and watch your savings grow month after month.

Other sites similar to Mint you might want to check out include Wesabe and PearBudget.

Automatic Savings Programs or Savings Incentives From Banks -
Many banks offer programs that help you increase your savings. A few include:


Keep The Change® from Bank of America - Debit card purchases are rounded up with the "change" being deposited in your savings account. BofA will even match a portion of the savings. Learn more: http://www.bankofamerica.com/promos/jump/ktc_coinjar/index.cfm?&statecheck=DC

Savings Today And Rewards Tomorrow™ from U.S. Bank - They reward savings (through recurring transfers) with a $50 visa card when you save $1000, and another after keeping a balance of $1000 or more for a year. Learn more: http://www.usbank.com/en/personal/products_and_services/savings/start.cfm?redirect=start

Check local banks and credit unions to see if they have similar offers. Most institutions will also allow you to set up automatic transfers from your checking to savings account, eliminating any effort and the risk of forgetting.

Savings Support -
I considered including some of the "deal" sites that allow you to save a large % at a certain website or find a 2 for 1 offer, but the problem is that these sites are still encouraging you to spend money, not save it. It doesn't matter how great the deal is - if you don't need the item you'll save more by not buying it at all. Instead check out these financial experts who will encourage you to cut your spending and increase your savings - they want you to be financially secure.

Clark Howard - www.clarkhoward.com

Suze Orman - www.suzeorman.com

The programs listed above were described according to the institutions' websites at the time of this writing. The banks may make changes to these programs in the future.

Best of luck saving for your new home!