Did you know the average tax refund in 2024 was $3,004?#1 💰 That extra cash could be a game-changer on your path to homeownership! If you’re planning to buy a home, here are four savvy ways to use your refund to make the process more affordable and achievable:
✅ Boost Your Down Payment - Many buyers believe they need a 20% down payment, but many qualified borrowers can put down as little as 3-5%. A tax refund could go a long way toward meeting that target. A larger down payment can help lower your monthly mortgage payment and improve your loan options.
✅ Cover Closing Costs - Closing costs typically range from 2% to 4% of the home’s purchase price. Instead of scrambling to cover these expenses, your tax refund could be enough to offset or completely cover closing fees, reducing your out-of-pocket costs.
✅ Pay Down Debt - When approving a mortgage, lenders look at your debt-to-income (DTI) ratio. Using your tax refund to pay off credit card balances or other debts can lower your DTI, boost your credit score, and improve your loan approval odds.
✅ Lower Your Interest Rate - You may be able to use your refund to buy discount points and reduce your mortgage interest rate. Discount points are prepaid interest fees—typically 1% of the loan amount per point—that can help secure a lower rate, potentially saving you thousands over the life of your loan.
A tax refund is an excellent opportunity to invest in your future home. If you’re ready to start your home search, let’s connect at RelocateToAZ.com or Here
📞 Call or text me at 602-679-1025 to discuss your options!
🔗 Source: #1IRS Filing Season Statistics
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