Using Your Tax Refund Towards Buying a House
Wondering how you’re going to use your refund this year? Should you blow it all away on one splurge? NOPE! We think you should use your tax refund to invest in a home. According to the IRS, the average refund is $3,120. That money can be a HUGE help towards investing in a house. It could go towards a down payment or your closing costs.
There are even incentives for next year’s taxes. First time homebuyers will see an even bigger tax refund in the next year because they’ll have the new write off in the interest paid on their mortgage. This means that your refund will be larger each year and you can use that money to make larger payments on your mortgage. This means you’ll be paying off your mortgage QUICKER! Homebuyers also receive a homestead exemption for buying a home.
Let’s break down the down payment. The more money you put into a down payment, the less you’ll have to borrow and pay in interest. Depending on what loan you get, down payments can be anywhere from 0% to 20%. Either way you want to use your money, $3,000 can go a long way in decreasing your costs in buying a new home. Our preferred lender, Dawn Kendall and her team at Homestar Financial can help you to determine how much house you can afford, what loan you can obtain and how best to utilize your tax refund. It’s time to invest in your future and we want to help you!