--- title: 6 Tips for Saving for Your Down Payment description: Learn effective tips on saving for a down payment and transition from renting to homeownership with practical advice from the American Bankers Association. image: https://www.ncb.coop/hubfs/Real%20estate%20sale%2c%20home%20savings%2c%20loans%20market%20concept.svg --- ## Newsletter Close Close ## You are about to leave the website of National Cooperative Bank and view the content of an external website. We provide links to external websites for convenience. National Cooperative Bank does not endorse and is not responsible for their content, links, privacy or securities policies. 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The American Bankers Association suggests the following tips to help save for it: Develop a budget & timeline Start by determining how much you’ll need for a down payment. Create a budget and calculate how much you can realistically save each month – that will help you gauge when you’ll be ready to transition from renter to homeowner. Establish a separate savings account Set up a separate savings account exclusively for your down payment and make your monthly contributions automatic. By keeping this money separate, you’ll be less likely to tap into it when you’re tight on cash. Shop around to reduce major monthly expenses It’s a good idea to check rates for your car insurance, renter’s insurance, health insurance, cable, Internet or cell phone plan. There may be deals or promotions available that allow you to save hundreds of dollars by adjusting your contracts. Monitor your spending With online banking, keeping an eye on your spending is easier than ever. Track where most of your discretionary income is going. Identify areas where you could cut back (e.g. nice meals out, vacations, etc.) and instead put that money into savings. Look into state and local home-buying programs Many states, counties and local governments operate programs for first-time homebuyers. Some programs offer housing discounts, while others provide down payment loans or grants. Celebrate savings milestones Saving enough for a down payment can be daunting. To avoid getting discouraged, break it up into smaller goals and reward yourself when you reach each one. If you need to save $30,000 total, consider treating yourself to a nice meal every $5,000 saved. This will help you stay motivated throughout the process. [![Visit our Homebuying Center](https://no-cache.hubspot.com/cta/default/3482868/18f89998-8f42-47e5-997c-a121e2189410.png)](https://cta-redirect.hubspot.com/cta/redirect/3482868/18f89998-8f42-47e5-997c-a121e2189410) *Blog post courtesy of the American Banker's Association.* - [National Cooperative Bank](https://www.ncb.coop/blog/tag/national-cooperative-bank), - [NCB](https://www.ncb.coop/blog/tag/ncb), - [Homeownership](https://www.ncb.coop/blog/tag/homeownership) Related Posts ![Understanding Vishing Scams](https://www.ncb.coop/hubfs/Businessman%20hand%20using%20mobile%20phone%20with%20digital%20layer%20effect%20as%20business%20strategy%20concept.svg) 01 Sep 2021 Understanding Vishing Scams [Read Post ](https://www.ncb.coop/blog/understanding-vishing-scams) ![Loan or Special Assessment?](https://www.ncb.coop/hubfs/Young%20businessman%20taking%20a%20decision%20with%20arrows%20and%20question%20mark%20above%20his%20head%20(1).svg) 03 Mar 2021 Loan or Special Assessment? 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