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What do I need to know about saving for a home?

The first thing to understand about buying a house is that you don’t have to have all the cash saved up in order to make your purchase. If you have a steady job and a reasonable credit history, there is a good chance that you can find a home lender who will lend you most of the purchase price of your new home.

Home loans typically are offered in amounts of 80%, 90% and 95% of the price you are paying for the house. You are expected to pay the remaining amount in cash from your own savings.

Because real estate has proved to be such an excellent investment, and lenders expect that your home will be worth more in the future, the interest rate you can obtain on a home loan is one of the best around. Today you can borrow a home loan – fixed at the same rate for many years – at substantially less than the prime rate.

Finally, home loans are available to be repaid over terms of usually 15 or 30 years. The shorter term loan offers a slightly lowered interest rate – it’s better financing than you can get on just about any other investment.