Follow and tag friends on The Mortgage Reports on Instagram now to win a $250 Starbucks gift card.
You hear it a lot: “Future home buyers shouldn’t go to Starbucks because they should save that money for a down payment on a house.”
We get the reasoning, but it’s flawed at its core.
First of all, there are plenty of loan programs that require no down payment or a small one, and besides, it’s often not a good idea to make a large down payment.
Additionally, it’s unrealistic to put a dent in the price of a home by skipping the morning latte.
According to financial site fool.com, the average American spends about $3 per day on coffee, or $1,100 per year. Even a five percent down payment on a $250,000 home would take 11 years to save up by driving past Starbucks every day.
By that time, the house you were looking at has appreciated faster than your abstinence has added to your bank account.
Drink Starbucks without Guilt, courtesy of The Mortgage Reports
Despite the flawed logic, the anti-Starbucks argument can still cause a twinge of guilt within the prospective home buyer. To relieve this phenomenon, we are giving away a $250 Starbucks gift card, plus other coffee-related prizes, for one lucky home buyer who follows The Mortgage Reports on Instagram.
Additionally, you can submit multiple entries by tagging friends in any Starbucks contest-related post.
Go to The Mortgage Reports on Instagram, follow, and tag on or before December 19!
Better ways to save for a down payment
There are strategies to save for a down payment with much higher impact than skipping coffee.
- Pay off credit cards: save $200 per month
- Drive an older car: save $400 per month
- Get a roommate: save $500 per month
- Live with friends or relatives: save $1,200 per month
Look for big-ticket items you can do without, at least temporarily. Cut out your highest expenses first, when feasible. You’ll raise the money for a down payment much faster than saving a few bucks here and there (no pun intended).
