With summer on its way out and fall just around the corner, it’s prime latte season. Pumpkin spice, maple pecan, salted caramel—some of the best seasonal flavors make their debut!
While it’s great to treat yourself to a cup of coffee every now and then, those small expenses can really add up—especially if you’re pinching pennies for a down payment.
The Latte Method
Recently, Realtor.com put together a report titled “A Latte a Day Keeps Homeownership Away.”
By calculating the average down payment and median home price for a number of major US cities, the minds at Realtor.com were able to figure out just how much you need to save every day in order to afford a down payment within the next five years, representing that number with the equivalent amount of lattes.
The title may be a little pessimistic, but when you take a hard look at the numbers, the results are undeniable.
Daily Savings
The average price of a latte fluctuates based on city, but typically hovers within the $3.50 to $3.80 range. Depending on your usual coffee order, that number could be even higher—for example, a tall pumpkin spice latte comes in at $4.25.
Here’s what you’d need to save daily to afford a down payment within five years:
- Atlanta: 1.6 lattes
- Average down payment: $10,450
- Median price: $335,436
- Daily savings: $5.72
- Chicago: 2.9 lattes
- Average down payment: $19,580
- Median price: $312,098
- Daily savings: $10.72
- New York: 6.8 lattes
- Average down payment: $45,717
- Median price: $564,500
- Daily savings: $25.04
Raleigh falls on the lower end of the range, coming in at 2 lattes a day, or around $7.30. When you break your down payment into these smaller numbers, you can see just how much a coffee day affects your overall budget.
Buying Your First Home
Figuring out your finances while buying your first home is a daunting process, but not an impossible one. If you need help creating your five-year plan, Linda Craft & Team REALTORS® can help. Start things off by figuring out what your extra daily expense might be—whether it’s a latte, lunch, or an after-work drink—and cutting it back. Then, use our mortgage calculator to get some concrete numbers!
Need Some Budgeting Help?
Trust in the expertise of Linda Craft & Team REALTORS®. With over 300 years of combined real estate experience, we have what it takes to not only help you save up for your new home, but also successfully lead you through the in and outs of the buying process.
Take a look at some of our resources for buyers, browse a few homes on the market, and give us a call to get started.