How To Save For A House Faster (in 2025)

Here is how you can save for a down payment much faster. This is the advice I gave in January 2025, and it applies to a first house or a second one.

Step one is to get really clear on your goals. The first question I ask everyone who comes to me about a mortgage is: why are you buying a house? For most people it is because they heard it is better than renting. There are plenty of other benefits to owning that people do not know about. But think about your life over the next five years, knowing everything can change. Where do you want to be? Do you plan on moving? If you are not going to live in the house you buy for the next five years, you should probably rent for a while. Are you going to be married, have kids, get a promotion that changes your income a little or a lot? You need to know these things before you build a plan to save.

Step two is to prioritize saving. I talk to a lot of people, and honestly, sometimes me too, who spend money on things that are not that important. If you set a goal to buy something valuable like a house, saving has to be a priority. If you are married, make sure you are on the same page and make it a joint goal.

That rolls right into step three, tracking your spending. You need a personal or family budget, or some kind of way to track your spending each month, so you can capture any extra dollars and put them in a savings account for your house fund. I did mention a couple of online tools in the video, but those change over time, so use whatever budgeting app or spreadsheet works for you.

Step four is to automate your savings. Once you know your goals, you have made saving a priority, and you are tracking spending, you will know about how much you can save per month and when you will reach your down payment goal. Set up an account and have an automatic deduction from your bank every month, so you do not have to think about it.

The last step is a bonus. Look at what a monthly mortgage payment will cost if you buy a house in 2025. It will probably be more than you pay in rent, and for some people that makes them nervous. If you pay $2,000 in rent and your mortgage will be $3,000, try to save $1,000 a month. If that money is pulled out of your account automatically, then by the time you are ready to buy you will have your down payment saved, and you will already be used to making that mortgage payment.

If you want to see how much you need to save and what programs could lower it, start with down payment assistance or get your rate. If you have questions, send them my way, and I answer them. MortgageOne is now licensed in 49 states.