3 Ways to Save for a Down Payment with Your Credit Union
Ready to buy a new home? Here are some easy ways to start a savings fund for your first down payment.
What is a Down Payment?
A Down Payment is a one-time cash payment you provide at the closing of the home loan. The size of your down payment assists in determining your monthly mortgage payments and initial home equity.
How to Save for a Down Payment
Here are some tips and ideas for saving towards your down payment cost:
1. Transfer funds.
Transferring funds directly into a savings account is a great option for saving towards a down payment. You can decide on contributing a fixed amount or a percentage of your paycheck to this savings.
Pro-tip: When you open an account at American Eagle Credit Union, you automatically open a savings account with 5 dollars, so it’s easier than ever to transfer funds from checking to savings. Open your account today.
2. Open a CD savings account.
Certificates of Deposit (CD) are a safe, secure way to get a good return on investment. With competitive rates and special rate bonuses available, CDs are another great option for growing your down payment savings.
After your CD has reached its term limit, you can renew the term or credit the interest earned through this form of savings back to your account. See the different CDs available.
3. Open a Money Market account.
Money market accounts are a flexible, secure way to save for a down payment and earn higher interest rates as your balance grows, with interest compounded daily on balances of $1,000 or more.*
Get more information on Money Market accounts.
Start saving for your dream home today.
Get the best rates for your down payment savings with your credit union. Opening an account can be done online with a few easy clicks! Questions about how to save? Call our Member Contact Center at 877-325-2848.
*Money Market Account interest is compounded daily and paid monthly.