Your Tax Refund Can Help Pay for Some of these Expenses
Have you been saving up to buy a home this year? If so, you know there are a number of expenses involved – from your down payment to closing costs. But did you also know your tax refund can help you pay for some of these expenses?
“If one of your goals is to stop renting and buy a home, you’ll need to save up for closing costs and a down payment on the mortgage. A tax refund can give you a start on the road to homeownership. If you’ve already started to save, your tax refund could move you down the road faster.”
While how much money you may get in a tax refund is going to vary, it can be encouraging to have a general idea of what’s possible. Here are a few example of how you can use you refund when buying a home.
- Saving for a down payment – One of the biggest barriers to homeownership is setting aside enough money for a down payment.
- Paying for closing costs – Closing costs cover some of the payments you’ll make at closing. Generally they are 2% and 5% of the total purchase price on the home.
- Lowering your mortgage rate – Your lender might give you the option to buy down your mortgage rate. This option may be worth exploring. If you qualify, you may have a lower mortgage rate.
The best way to get ready to buy a home is to work with a trusted real estate professional. I understand the process and what you will need to do to be ready to buy.
