A grande three pump vanilla latte from Starbucks costs $4.10. Starbucks Coffee shops are basically on every corner in every city, they have mini locations in grocery stores and drive thru locations with lines around the block.  While Starbucks is taking up all this real estate, did you ever think that it might be costing you yours?

If you get one of those fancy lattes everyday, it`s going to cost you about $123.00 per month, and that`s really if you stick to just one per day. At $123 per month for one year, Starbucks is costing you close to $1,500.

While $1,500 a year is a lot to spend on amazing gourmet coffee drinks, that alone won`t disqualify you from a home loan; however, when looking at the bigger picture, cutting out fancy frappuccinos can dramatically help with saving funds for your new home.

According to jsonline.com, if you brewed your own coffee rather than spending $2.40 on a cup at Starbucks, “By putting the savings into a mutual fund with average earnings of 6.5% interest and re-investing the dividends into more mutual funds over a decade, the $64.48 saved every month would grow into $10,981.93.” Again, that is based off a cup of “average joe” they serve right from the urn, not a venti Pumpkin Spice Latte or a trenta Flat White. My point being that most people spend a lot more than $2.40 at Starbucks which only increases the savings if you decide to break the habit.

With all that said, when you do buy your first home or a bigger and better home with the down payment money that you saved by not indulging in Starbucks everyday, make sure to buy one near a Starbucks... according to Zillow and CNN Money, homes near the popular coffee shops are worth more. They call this the Starbucks Effect”, stating that “Between 1997 and 2013, homes closer to the coffee shop increased in value by 96%, compared to 65% for all U.S. homes.”