BIRMINGHAM, Ala. (WIAT) — Saving for a large purchase now can make a big difference down the road. That’s what we learn in this week’s edition of the eCo savings race.
Tres and Erin Kennedy have only been married since August, but they’re already making a lifelong difference in their finances. During our last visit, the couple told us that they had paid off their student loans and were now debt free.
“We did. We paid off all of our debt,” Erin Kennedy said.
They say being debt free is a great feeling.
Tres said: “It was a great [like a] breath of fresh air to know that we no longer have that debt of ours heads.”
So, with the debt behind them the couple now has their sights set on a much larger goal.
“Since we’ve paid off our debt we’re looking to save for a down payment on a house. Which is super exciting,” Erin said.
Tres and Erin say that they had actually discussed buying a home during their engagement.
“When we first started looking when we were engaged, we heard about PMI…and we didn’t even know what that was,” Tres said.
PMI or private mortgage insurance is sometimes required when a down payment is less than 20% of a home’s value.
“Basically it’s just money that you’re paying that doesn’t go towards the house whatsoever,” Tres explained.
So they decided to wait until they could have a larger down payment for their first home purchase.
“We decided to rent so that we could save money for the down payment on a house because we didn’t have that,” Erin said.
The couple is making great progress toward that goal.
“We are well over halfway to our goal for 20% down on a house,” Tres said. “Hopefully with the focus that we have, we’re going to exceed the goal for the 20% down…..uh, by the end of the Savings Race.”
No debt and well on their way to buying their first home. Things are looking great for the Kennedy family.
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