5 Ways to Save for a Down Payment on Your New Home

Are you trying to save money for a down payment on a house? I have five simple tips to help you do just that.

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I recently ran across an infographic from the National Association of Realtors about simple ways to save money for a down payment on your next home. 

Roughly 60% of homebuyers financed their home with less than 6% down in 2017. Since the current median sales price is $258,300, a 6% down payment is about $15,498. Here are five simple ways to save up that money: 

1. Give up your morning latte. The average cost of a latte is $3.78, or more depending on where you go. That’s $1,300 a year you could save. 

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Skip your morning latte and you could save at least $1,300 a year.

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2. Cut out cable. The average cable package costs $100 a month. That’s $1,200 a year right there. 

3. Bring your own lunch. Brown-bagging it will save you some money. The average American spends $11 a meal when they go out to eat. Here in Fairbanks, that’s probably a little more. You can save $1,000 a year right there.

4. Stop going out to eat. The average American spends about $232 per month eating out. Staying in and making your meals will save you nearly $2,800 per year. 

5. Go car-free. The average American spends around $713 a month on their car. Taking the bus, riding your bike, or carpooling will save you more than $8,500 a year. 

That’s how you save for your down payment (or to cover those closing costs) and get into a home. 

If you have any other questions about buying a home or about real estate in general, just give me a call or send me an email. I would be happy to help you.

The 10 Most Expensive Mistakes Alaskan Homeowners Make

Are you making any of these top 10 homeowner mistakes? I’ll go over the full list and how to avoid them today.

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Today, I want to go over the 10 most expensive mistakes you are making in your home. I’ll also share how to avoid them and save your money.  

1. Using traditional light bulbs. If you haven’t made this switch yet, you are missing out. We cut our electric bill in half just by replacing all those incandescent lights with LED lights. It may cost a bit up front to make the switch, but in the end, you will save a lot of money on your electric bills. 

2. Ignoring a leaky faucet. If you’re on a well, you might not think that’s a big deal. However, I recommend that you check your bill if you are in the city on city water. If you have a running toilet or leaky faucet, that is probably why your water bill is twice as much as it was. 

3. Not getting your boiler tuned and cleaned by a professional. This is something you should do annually so that your boiler runs at peak efficiency. 

4. Not customizing your temperatures. If you don’t have some sort of boiler control, outdoor reset, or programmable thermostat, you are costing yourself extra money. Make sure that you are fluctuating the heat for when you’re not in the home in order to save on your heating bill. 

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Updating your light bulbs could cut your electric bill in half.

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5. Not adjusting your HRV correctly. It’s not uncommon that I go to a house and the HRV is pumping out air all the time, which means you are heating the outside air and bringing in cold air. 

6. Not cleaning your gutters. 

7. Your water temperature is set too high. If you have an electric water heater, check that. The same goes for an oil-fired furnace—it might be set too high.  

8. Leaky windows and doors. Check the seals on the bottom of the doors. If seals get torn up, replace them. Small drafts add up and cost you money. 

9. Paying a handyman. Sometimes if you do some of these things yourself, you’ll come out ahead. Having a handyman can be expensive, but if you don’t know what you’re doing, hire a handyman. 

10. Not using a timer for your car head bolt heaters. If you plug your car into a straight outlet and don’t put that on a timer, then you are adding a lot of money to your electric bill.

I hope you found this list helpful. What other things should homeowners know about? Give us a call or send us an email with any questions or suggestions you might have. I look forward to hearing from you!