Are You Saving Up To Buy a Home in Phoenix? Your Tax Refund Can Help

You’ve been working on your savings and dreaming of that moment when you finally have the keys to a place that’s truly yours. You might not realize that your tax return could give you a little extra cash to help you get there sooner. As Freddie Mac notes:

“ . . . your tax refund from the IRS can be a useful supplement to your home-buying budget.”

So, if you’re getting a tax refund this year, you can use it to help you pay for some of the upfront costs that come with buying a home, like the down payment and closing costs. And here’s the best part.

On average, people got more money back in their refunds than last year. While it’s not a significant increase, the visual below uses data from the Internal Revenue Service (IRS) to show that the average individual’s refund is 3.9% higher this year:

Of course, how much money you may get in your tax refund will vary. But when it comes to buying a home, any extra cash can help move things forward. Here are a few examples of how you can put that money to good use, according to Freddie Mac:

• Save for a down payment – Saving for a down payment can be one of the biggest hurdles for buyers. Setting aside your tax refund for this expense could help you reach your goal faster. Just remember, it’s typically not required to put 20% down.

• Pay for closing costs – Closing costs include fees for the appraisal, title insurance, and loan underwriting. They’re generally between 2% and 5% of the home's total purchase price. So, putting your refund toward these costs can make things more manageable on closing day.

• Lower your mortgage rate – Your lender might allow you to buy down your mortgage rate. If you qualify for this option, you could pay up front for a lower mortgage rate. It may be worth exploring if your budget is tight at today’s rates and home prices.

But you don’t have to figure it all out on your own. Working with Brad and his team of trusted real estate professionals who understand the home-buying process, what you need to save, and any resources you can tap into will help ensure you’re ready to buy when the time comes. When saving for a home, every dollar gets you one step closer to your goal. While your tax refund may not be enough to change the game, it can help boost your home-buying fund.

What would having your own home mean for you or your family this year? Let’s talk about it and devise a strategy for success - Brad (602) 679-1025