Tax season is here, and if you’re wondering how to make the most of your tax return, using it towards a down payment on a new home could be one of the smartest moves you make this year. Whether you’re a first-time homebuyer or looking to upgrade to a larger space, your tax refund can provide the financial boost you need to make homeownership a reality.
Equity Resources’ Executive Vice President of Sales Tom Piecenski says “tax refunds have been used by many of our clients to help supplement their down payment savings and are a smart way to get a jump on their homebuying dreams.” By applying that refund to your down payment, you could reduce the amount you need to borrow, which can help you secure more favorable mortgage terms, including lower interest rates and potentially lower monthly payments.
This strategy doesn’t just help you save money; it also makes your homebuying journey much more affordable and accessible. In today’s market, where home prices may fluctuate, putting down a substantial down payment could also help you avoid additional costs like private mortgage insurance (PMI), which can add up over time. If you’re looking to invest in property soon, using your tax return could be the perfect opportunity to take that first big step toward homeownership.
If you know someone thinking about buying a home, please share this great idea with them!