How to Save for a House While
Renting: How Much Money Should I Save Before Buying a House
How do I save for a house when I’m renting? What’s the best thing I can do? Have you heard the thing about just cutting out one cup of coffee a day?
I mean for my time and my folks time a cup of coffee was ten cents. Nowadays the average price of coffee is about $5.72 up to $7.92 a day in just a cup of coffee. So, let’s just look at what’s going to keep home ownership away.
Well, a latte a day will. Do you realize what you could save by taking two cups of coffee a day off the table and putting that money into your account?
In five years, you’d have enough for a down payment. Now this is based on an average here, let’s just say here in Gig Harbor, with the average home value of $325,000 to $335,000. Basically, within five years you could put around $14,200.00 away just by dropping off two lattes a day. Wow, isn’t that great? Within five years you could have enough for down payment!
That leads us to the next myth.
Myth number two, people think that they have to have 20% down to get a down payment. If we figured this out at $335,436 for a home and you want to get a down payment, the average down payment is only $10,450. So, $10,450 is just 3.1%. Yes, you can get loans for 3% with good credit, and still just have a have a minimal amount down. The more money you put down of course the more you’re going to be able to lower your house payment.
But really when you look at lowering it, say an extra $10,000, maybe only lowers it another $100 a month. So, look at what you’re doing for rent. Look at what you can do.
Just think about saving and forgetting about that two cups of coffee or make it at home. Save the money or get your friends to buy you [the coffee]. You know, at the Starbucks out there! There’s the thought for the day.
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