Saving for Down Payments

According to the Maryland Association of Realtors, a starter home in MoCo costs approximately $297,500 (85% of the 2010 median home price) in 2010.  The typical first time homebuyer had a median household income of $50,479 (57% of annual county median income).

Based on the average 5% rate of savings per household ($2,524 per year), it would take a first time homebuyer:

• 5.9 years to accumulate a 5% payment of $14,875
• 11.8 years to accumulate a 10% down payment of $29,750
• 23.6 years to accumulate a 20% down payment of $59,500

Happy savings!!