Here’s How Much You Need To Save Monthly To Buy a House in New York in 2025
Written by
Marc Guberti
Edited by
Zuri Anderson
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Many people aspire to be homeowners, and making the down payment after saving up for a few years can be a rewarding experience. However, it’s good to set financial targets, so you know how much you need to store in your savings account before you are ready to buy a house.
There’s a lot of variability for each person since it’s based on how much you have in your savings right now, how much you make each month and the prices of homes in your area.
According to Rocket, the median home sold price in New York was $862,270 in January 2025. GOBankingRates will use this figure to calculate how much you’ll need to save monthly to buy a house in the Empire State.
How Much Do You Need for the Down Payment?
Luckily, you don’t have to save $862,270 to buy a house. You only need enough money for a down payment in the beginning. While a 20% down payment helps you avoid private mortgage insurance, you can make a 3% down payment if you have a good credit score and a low debt-to-income ratio.
These calculations will assume that you can keep up with the monthly mortgage payments regardless of whether you make a 3% down payment or a 20% down payment. It’s good to review your income and expenses to see how much you can afford for your monthly payment.
A 20% down payment on a $862,270 home comes to $172,454. If your mortgage lender accepts a 3% down payment and you can contend with private mortgage insurance for a few years, you only need to put down $25,868.10.
How Much Do You Need To Save Each Month?
Knowing how much you want to put down will help you gauge how much you have to save each month. You have to save less money each month if you’re ready to make a 3% down payment, but that will result in higher monthly mortgage payments.
You also have to factor in closing costs, which can range from 2% to 5% of the loan’s value. You can either pay closing costs upon getting the loan or roll them into your loan, but this route will result in higher monthly mortgage payments.
These calculations will assume that you can roll the closing costs into the mortgage. However, it’s good to give yourself a 2% to 5% buffer just to be safe.
If you want to make the higher 20% down payment, you need $172,454 ready to go. If you’re saving that much over the course of 12 months, you would have to save $14,371.17 per month. It’s a tall order, and it explains why most people save money for multiple years before they are ready to buy a home. If you’re already starting out with $50,000 in the bank, you only have to save $10,204.50 per month to be ready within one year.
You can buy a house much sooner with a 3% down payment if you can afford the higher mortgage payments. You only need $25,868.10 for this down payment. Saving $2,155.68 per month will get you there within a year.
You will need a little less money if you put your cash into a high-yield savings account that offers a 4% APY. Putting money in stocks is a little riskier, but equities can significantly outpace high-yield savings accounts during a bull market.
The Bottom Line
Buying a house in New York is more expensive than in most areas. That’s a product of the immense demand for New York housing, and prices will likely remain elevated for many years.
It’s good to know how much you have to save and what your monthly mortgage payments will look like so you can assess when or if a house in New York is right for you.
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