There is a Mortgage opportunity that is offered through the USDA Rural Development Loans and is restricted to certain population requirements but, it is really set up for people who are trying to buy a house. Used it myself with no regrets. Rates were competitive and much of the buyer's costs could be worked into the mortgage if the house appraised for more than you needed (you could add to the mortgage amount as long as it stayed under the appraised amount). Because of this mortgage type, I could afford to buy a house. As I remember the FICO Mortgage Scoring was reasonable and the loan requirements were reasonable. Note, you could potentially go in with nothing down. Food for thought.

FrankN wrote: Unfortunately I was not able to save the amount I needed so I had to re-sign my lease for another 12 months. Sad, but it will give me another year to save for a house.

I'm sorry to hear that, Frank. I have no doubt you will reach your goal soon - hopefully 2017 will be your year for home ownership! You've got a good head on your shoulders for finance and you'll get there.

One thing I have found out over the years , we all have plans to save "$" amount of dollars starting Jan 1st of every year but the variable that we have no control over is life , seems like you get on a roll and then you need brake work, the dryer goes out , etc.. Thing is to keep at it, save all you can when you can . All I have is my car note , no credit card debt , and I try to put as much as I can away but life always gets in the way . Thing is you don't have as much as you want saved on Dec 31st but it could always be worse so be thankful if you saved $10K at the end of the year or $1k , the thing is your trying and in the end that is all any of us can do !

Unfortunately I was not able to save the amount I needed so I had to re-sign my lease for another 12 months. Sad, but it will give me another year to save for a house.

I am very sorry to hear that. I haven't been doing too great either. My wife and I are saving for a house, but your monthly savings goal seems to slip away each month. I try to stay focused and keep my spirits up, but it definitely can be discouraging.

FrankN wrote: I am curious on how people are saving in 2016. Anyone have any other tips on how they have been successfully saving in 2016? Even though only 1 month has passed, it is always great to hear if people are on a great start.

We started off 2016 with my husband getting laid off. This isn't really unusual for his line of business, but this has been two winters in row when we have had to dip into savings to get through. He's back to work now and I'm adding to the savings accounts more than usual this year because I want to have even more of a cushion if it happens again next winter.

Usually FHA, USDA and VA Loans do not have prepayment penalties. The penalty would follow with more conventional loans.

Egghead wrote: That's a good point about the mortgage, FrankN. Plus some lenders penalize you for early repayment of a loan, which you'd have to factor in when looking at potential savings.

Why would a lender penalize you for paying back a loan early? I have paid many car loans early and even my last mortgage. I don't think I was penalized at all. That concept sounds foreign to me.

That's a good point about the mortgage, FrankN. Plus some lenders penalize you for early repayment of a loan, which you'd have to factor in when looking at potential savings.

It really depends on what your debts are vs. how you are saving. The important thing to look at is your return. What is the return (interest rate) of your debt vs. what kinds of returns have you got on your savings? An example would be credit card debt at 20%+. Unless you are a very sophisticated investor, I would advise paying down the debt because you will likely not return better than 20%.

Another example would be mortgage debt at ~3-4%. You could make a valid argument you could return better than 4% over the long-term so you should continue to invest and pay down your debt slowly.

Breakinger wrote: I'm trying to do better this year at saving than I have in previous years. I just don't want to end up struggling again if the economy should take a fall. With the extra money I have should I be paying down my current debts, or should I be putting it away in a savings account?

That is exactly my question. At what point is it better to save versus pay down your debt. I haven't been great at saving this year so far. I am starting to look at where the money is going. I'm trying to get better deals on my cable, cellphone and Internet bills. I'm also limiting the amount of times that I eat out each month.

I'm trying to do better this year at saving than I have in previous years. I just don't want to end up struggling again if the economy should take a fall. With the extra money I have should I be paying down my current debts, or should I be putting it away in a savings account?

I am curious on how people are saving in 2016. Anyone have any other tips on how they have been successfully saving in 2016? Even though only 1 month has passed, it is always great to hear if people are on a great start.

Many people are in a tough situation these days that makes it difficult for them to even find a few dollars to put away in a month. However, tight you have the belt cinched now, think about whether it's possible to cinch it just a little tighter. You may think that $1 for a cup of coffee twice a week can't make a difference, but that's $8 a month. Can you find an extra $2 to add to that so you have a even $10? A year later you have $120, all because of a cup of coffee.

Congrats on your hard work on savings! You can take pride in your accomplishment and as FRANKN explained, you could still add to your 2015.