It’s always a pleasant surprise when you get a big tax refund. After all, at the end of another year of late hours and long weeks, isn’t it nice to receive a sudden cash influx?
But many people struggle to find a smart way to spend their well-earned refund. If you’re in this boat, you might consider using your tax refund to invest in — or save toward — property.
Here are four ways to do just that:
Are you looking to buy a home soon? You could use the money for:
- A Down Payment: Putting your refund toward this lump sum will reduce the amount you’ll need to borrow for a mortgage — and decrease the amount you’ll pay monthly.
- Closing Costs: Don’t overlook the closing costs associated with purchasing a house, which can include an appraisal, a home inspection and origination fees. Your tax return can provide some helpful budgetary padding to cover these costs.
Do you already own a home? The cash refund could help you:
- Repair and Remodel: When you own a home, it can seem like there’s always something you want to change or fix, but never enough money to address it. With the extra cash back courtesy of the IRS, now might be the perfect time to replace your old carpeting, remodel your kitchen or build that deck you’ve always wanted.
- Refinance: If your credit has improved since you applied for your mortgage, you may be able to refinance and decrease your mortgage interest rate. Consider spending the refund on the necessary appraisal fees now to lessen your future payments.
Be sure to talk to a financial professional to come up with the best plan for you.
Do you have questions about home financing? Reach out today.