How Your Tax Refund Can Help You Buy a Home Sooner
You’ve been saving and planning for the day you finally unlock the door to your own home—and your tax refund might help you get there faster than you think. According to Freddie Mac, your refund can be a useful supplement to your homebuying budget, especially when it comes to upfront costs like a down payment or closing fees.
And this year, there’s even more good news: the IRS reports the average refund is 3.9% higher than last year. While the exact amount will vary, any extra cash can be a big help when you’re preparing to buy.
3 Smart Ways to Use Your Tax Refund Toward a Home Purchase:
1. Save for a Down Payment
Saving for a down payment is one of the biggest hurdles for homebuyers—but it doesn’t always have to be 20%. Putting your refund toward this goal could help you reach it faster and reduce the amount you need to borrow.
2. Cover Closing Costs
Closing costs can range between 2% and 5% of your home’s purchase price. These include fees for things like the appraisal, title search, and loan processing. Your tax refund can help ease the burden when it’s time to close.
3. Buy Down Your Mortgage Rate
Some lenders offer the option to buy down your mortgage rate, meaning you pay an upfront cost to lock in a lower interest rate. If affordability is tight, this could help reduce your monthly payment.
Talk to a Pro
If you’re not sure how to make the most of your refund, connect with a trusted real estate agent and lender. They’ll help you understand your financial options, what you need to save, and how to make a strong offer when you’re ready.
Bottom Line
Every dollar counts when you’re buying a home—and your tax refund could be the boost you need to bring your dream within reach.
What could homeownership mean for you and your family this year? Let’s talk.