Put Your Tax Refund To Good Use As A Down Payment

Put Your Tax Refund To Good Use As A Down Payment

Tax season may not carry the excitement of a holiday, but at least there’s the chance of a hefty refund to make it go a little easier. If you’re expecting thousands of dollars from the IRS this time around, consider these reasons to put it into a down payment on a home.

FHA Loans Have Low Requirements

Buyers that qualify for the FHA loan programs only need 3.5% as a down payment. Since the average refund for Americans is over $3,000 this year, that means you could find a home for up to $90,000 without having to save much more up for the deposit. Even if you’d prefer a $200,000 property, your check could get you nearly half of the way to your goal.

Save More

The more you put down in the beginning on a home, the less interest you pay in the long run. Boosting the amount you already have in hand could save you more after 30 years of mortgage payments. While it may seem tempting to spend your refund on a big screen TV or other immediately satisfying purchase, a home is worth the investment.

Carry It Over

Since tax refunds are issued every year, it’s easy to make a commitment to setting them aside for up to five years to build up a hefty fund for your new home purchase. You could have over $10,000 in just three years, which is much harder for most families when accumulated through monthly attempts at saving as much as possible.

Once you’ve received your tax return check, contact Cary Amo. This experienced real estate agent is standing by to start matching you with the best homes Lafayette and Contra Costa County have to offer.

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