First Bank of the Lake: The Best Ways to Save for That Second Home

The Lake of the Ozarks is one of the TOP vacation destinations in Missouri. Several people choose to buy their second home or vacation home. Seasonal homeowners come from all over whether it be St. Louis, Kansas City, Iowa - the Lake area attracts thousands of people every summer. But, how do they manage to save for these homes? First Bank of the Lake, one of the top banks in Osage Beach, is here to help you save for that second home. Keep reading some of the best ways to save for your dream vacation home at the Lake of the Ozarks.

The Best Ways to Save for That Second Home

Develop a Realistic Savings Plan

First, determine how much money you really need to save. Visit with a mortgage lender at the Lake of the Ozarks and figure out how much of a mortgage you qualify for. Then, compare your income to the potential monthly payments. The good rule of thumb is to limit your housing expenses to no more than 28 percent of your monthly income. So, the key here is to not forget about your current housing expenses since this will be your SECOND home.

For example, let's say your full household monthly income is $6500 and that your first home housing expenses equal to $1500. That leaves you $5000 a month to work with. You will want to try to shoot for monthly housing expenses of your vacation to be no more than $1400.

.28 x $5000 = $1400

Figure Out When You Want to Make This Purchase

What's your time frame on buying your second home? Keep in mind that you most likely will have to make a down payment. Typically, if you pay twenty percent down you can get a decently priced deal. So, if you have your eye on a second home that costs $250,0000 and you been approved for a mortgage for that amount, a twenty percent down payment would be $50,0000. If you'd like to purchase this second home within the next five years, then you will need to save $10,000 a year to be ready for payment.

Automate Your Savings

There are several savings account options at the Lake of the Ozarks out there that allow for you to connect your checking to your savings, making it easier for you to save. Check out one of the best options we have here at First Bank of the Lake.

Interested in Building Your Savings For That Second Home Automatically?

Check out the Free Kasasa Saver® at First Bank of the Lake. Build savings automatically — link this account to your free Kasasa® checking. Free Kasasa Saver® is saving simplified. Connect it to your Kasasa Cash® or Kasasa Cash Back® checking to build your savings effortlessly. When you earn cash rewards in your Kasasa checking, those earnings transfer into your Kasasa Saver. That’s Kasasa at First Bank of the Lake — free accounts that reward you for banking locally.

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