Now that I have been in the real estate industry for the past couple years, many people either ask me how much down payment that they will need in order to buy a home. Their reaction always makes me laugh when I tell them. Then it’s followed by them saying that it will take them forever or that they won’t ever be able to buy a home.
I’m here to tell you that owning a home is possible if you set a goal, have patience, and can save. You don’t have to save an exuberant amount all at once. All it takes is sacrificing that Starbucks Venti Macchiato every day for 5 years or make more meals at home and eat out less.
Here is a breakdown of how much to save daily to reach your goals of the lowest down, 3.5% payment or a 20% down payment in a few of my favorite neighborhoods in San Diego. Keep in mind that if you put less than 20% down payment, you will have to pay PMI, private mortgage insurance in addition to your mortgage payments. That fee varies anywhere from 0.3% to 1.5% of the original loan amount per year.
1. Mission Hills – Median home price: $1,054,500
- Average down payment: 3.5% ($36,908), How much you need to save per day: 5-year goal ($20.22), 10-year goal ($10.11)
- Average down payment: 20% ($210,900), How much you need to save per day: 5-year goal ($115.56), 10-year goal ($57.78)
2. North Park – Median home price: $531,100
- Average down payment: 3.5% ($18,585), How much you need to save per day: 5-year goal ($10.18), 10-year goal ($5.09)
- Average down payment: 20% ($106,200), How much you need to save per day: 5-year goal ($58.19), 10-year goal ($29.10)
3. Little Italy – Median home price: $452,700
- Average down payment: 3.5% ($15,845), How much you need to save per day: 5-year goal ($8.68), 10-year goal ($4.34)
- Average down payment: 20% ($90,540), How much you need to save per day: 5-year goal ($49.61), 10-year goal ($24.81)
4. Encinitas – Median home price: $899,200
- Average down payment: 3.5% ($31,472), How much you need to save per day: 5-year goal ($17.24), 10-year goal ($8.62)
- Average down payment: 20% ($179,840), How much you need to save per day: 5-year goal ($98.54), 10-year goal ($49.27)
5. Carlsbad – Median home price: $745,800
- Average down payment: 3.5% ($26,103), How much you need to save per day: 5-year goal ($14.30), 10-year goal ($7.15)
- Average down payment: 20% ($149,160), How much you need to save per day: 5-year goal ($81.73), 10-year goal ($40.87)
6. La Jolla – Median home price: $1,640,100
- Average down payment: 3.5% ($57,404), How much you need to save per day: 5-year goal ($31.45), 10-year goal ($15.73)
- Average down payment: 20% ($328,020), How much you need to save per day: 5-year goal ($179.74), 10-year goal ($89.87)
7. 4s Ranch/Del Sur – Median home price: $753,300
- Average down payment: 3.5% ($26,366), How much you need to save per day: 5-year goal ($14.45), 10-year goal ($7.22)
- Average down payment: 20% ($150,660), How much you need to save per day: 5-year goal ($82.55), 10-year goal ($41.28)
8. Point Loma – Median home price: $791,500
- Average down payment: 3.5% ($27,703), How much you need to save per day: 5-year goal ($15.18), 10-year goal ($7.59)
- Average down payment: 20% ($158,300), How much you need to save per day: 5-year goal ($86.74), 10-year goal ($43.37)
9. South Park – Median home price: $636,300
- Average down payment: 3.5% ($22,271), How much you need to save per day: 5-year goal ($12.20), 10-year goal ($6.10)
- Average down payment: 20% ($127,260), How much you need to save per day: 5-year goal ($69.73), 10-year goal ($34.87)
10. University/Normal Heights – Median home price: $545,600
- Average down payment: 3.5% ($19,096), How much you need to save per day: 5-year goal ($10.46), 10-year goal ($5.23)
- Average down payment: 20% ($109,120), How much you need to save per day: 5-year goal ($59.79), 10-year goal ($29.90)
