Baby step 6 is to pay off the House early. Buying a house is for most people the largest purchase they will ever make. I want you to do it right. Saving for a down payment is done as part of baby step 3. Consider the down payment as baby step 3b. It should be at least 20% down payment that way you avoid PMI (private mortgage insurance)
The biggest mistakes I’ve seen are people that are house poor. By that I mean that the house and the up keep take up too much of their income. That is why it is recommended that your mortgage and taxes payment be no more than 25% of your monthly gross income.
My wife and I were debt free for close to 6 years before purchasing a house. In the mean time we saved for a down payment.
Don’t get more than a 15 year fixed rate mortgage. The substantial savings between a 30 year mortgage vs a 15 year mortgage can fund a retirement account. Also it will save your 15 years of payments.
Here is a link where Dave is discussing when to save for a down payment. Here
Also here is a reminder of the baby steps we’ve been following. Here.
If you have questions don’t hesitate to ask here. Take charge of your money!
Your biggest cheerleader on social media,
P.S. Day 338 please pray for the 7.2 million goal for 2020