Recently, this conversation was discussed among friends about how people will buy lattes, coffees, or other specialized drinks as part of their daily routines. Later, the conversation switched to purchasing a home and the amount of money needed for a down payment.
Typically in Maryland, a down payment for a home range anywhere from 3.5% to 20% of the purchase price of the home’s sale amount. The down payment of a home also depends on the type of loan that bank pre-approves you for based on your income and credit. Many first time home buyers, select the lowest amount (3.5%) for a down payment as their funds are limited.
Let’s take a closer look at that figure:
| Price of Home | 3.5% Down Payment | Size of Latte | Daily Cost of Latte | 5 Year Cost of Daily Latte |
| $200,000 | $7,500 | Tall | $4.25 | $7,756.25 |
| $250,000 | $8,750 | Grande | $4.95 | $9,033.75 |
| $300,000 | $10,500 | Venti | $5.25 | $9,581.25 |
Bottom Line:
As you can see, the cost of those tempting lattes add up quickly. Just by changing that small spending habit each day, you can easily save up for a down payment on a home, very quickly! Imagine if you cut out eating out every week??? You could be purchasing a home even quicker!
For more money savings tips, credit issues, or to discuss the home buying process; contact Team Caropreso today by visit our website: Excellence in Real Estate
