short term questions with home purchase
 

ok, so i invest a lot, but all my investments are long term things (10+ years). say i wanted to make a large purchase in the next 12 months (like a house).

Where is the best place to keep and save money for this? I am guessing a CD or one of those 5% savings accounts?

How much money do I put in that short term account? I want to get a mortgage so I can leverage my existing money in the market. I will not be paying for the entire home upfront.



sorry if this is really stupid, i am just clueless when it comes to short term investments.

Re: short term questions with home purchase
 

Depending on the amount of money any of those things is probably fine. CD will not be good if you may want the money before the time the CD expires. But something like high yield savings or money market should be fine.

Re: short term questions with home purchase
 

I would recommend using a 5%+ online savings account - easy to set up and completely liquid. Probably put in 20% of the expected purchase price of the range of homes you are looking at. 20% should get you the best rate available on your mortgage and avoid any need for mortgage insurance. Putting this entire amount in the savings account would ensure this money is completely safe and liquid for your purchase.

Re: short term questions with home purchase
 

[ QUOTE ]
I would recommend using a 5%+ online savings account - easy to set up and completely liquid. Probably put in 20% of the expected purchase price of the range of homes you are looking at. 20% should get you the best rate available on your mortgage and avoid any need for mortgage insurance. Putting this entire amount in the savings account would ensure this money is completely safe and liquid for your purchase.

[/ QUOTE ]

Love this recommendation............. [img]/images/graemlins/club.gif[/img] [img]/images/graemlins/club.gif[/img]