What should your monthly savings be in order to pay cash to build the desired type of home within your budget range?
Asking, “How much does it cost to have a house built?” is paramount when it’s the house of your dreams. You need to know because it’s important to start saving up money as soon as possible. The amount you need to put away each month will depend on how much your desired home costs, how much your down payment is, and how long it will take you to save up the rest of the money you need.
For example, if you want to finance and build a $150,000 home, you’ll need to have about $7,500 for a conventional down payment (which is around 5%). There are other options that require a lower down payment, or even none! If you want to self-finance your home and you want 36 months to save up the remaining $142,500, you’ll need to set aside around $3,960 each month.
Of course, these numbers can vary depending on how much money you put down initially and how often you want to pay yourself back. For example, if you were to save up $25,000 for a down payment, your monthly savings would only be around $1,750 (since you’ll need less time to build your home with less money).
Building a house is a huge life-changing event, and it’s important to be prepared for how much it will cost. By following the saving tips above, you’ll be on your way to saving up the necessary money in no time. Just be sure to stay disciplined with your spending and to put away as much money as possible each month. Before you know it, you’ll be moving into the home of your dreams!