It is officially tax season! Why is this exciting news for you? Because if you’re receiving a tax refund, you’ll need to decide what you’re doing with that money. You can spend it on a new car, some fresh new clothes, invest in the stock market (is GameStop still a good buy?), or you can invest in YOU! Make a move towards investing in your future by using that tax refund towards the down payment on a new home!
Whatever amount of money you may be getting back, whether it’s a few hundred, or over a thousand dollars, this your it’s time to invest in you! Take your tax refund, and put it towards a down payment on a new home.
What better way to utilize this extra cash than investing in a home that you’ll have for years to come?! Not only will this help you get one step closer to owning your dream home, but it can also help you save money down the road.
How Much Money Do You Need for a Down Payment?
According to themortgagereports.com, “It’s better to put 20 percent down if you want the lowest possible interest rate and monthly payment. But if you want to get into a house now, and start building equity, it may be better to buy with a smaller down payment — say 5 to 10 percent down.”
So, let’s say the home you are looking to purchase is $300,000. While a 20% down payment is ideal, this is not your only option. If you qualify for a VA or USDA loan, you can put zero percent down. With other loans, such as FHA or Conventional, you can put down as little as 3-3.5%…that’s as little as $9,000!
However much you decide to put down on your home helps determine your monthly payment. The more you put down, the less you will pay each month towards your mortgage.
Whatever down payment works best for you, saving your tax refund to put towards a down payment can help you become a home owner much faster! If you know you want to purchase a home, but you’re not looking to for the next few years, save up the tax refund you receive each year. The sooner you start to save, the better it is for you! Taking your tax refund and putting that towards your down payment will help you to invest in your future, owning a piece of property that will appreciate in value over time.
Invest in Your Future!
If you’re receiving a tax refund this year, the best advice we have is to use it to invest in you! What better way to do that then to purchase a new home?!
When you’re ready, contact Team Crescenzo! We will be happy to help you learn more about different loan products, and determine how we can help you purchase your dream home! Give us a call at (843) 352-8581.