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Using Your Tax Refund Wisely

Written by
Cam Kuhn, former Director of Communications ARA
Written by

You may have sent in for your refund and anxiously waiting the day it hits your bank account so you can go spoil yourself because you deserve it! In today’s consumer-driven world there are a plethora of options on what one can use their refund. But maybe, just maybe, you invest in something extra smart- like real estate. With the interest rates floating on low amounts and the market consistently growing, now may be the time you make a move to position yourself in a better, stronger housing market.

Save for A Down Payment

With more options than ever at getting a low down-payment and down-payment assistance from some local and state programs, your IRS refund can easily be the amount you need to put down and get into your dream home. The misconception that you have to have 20% down is no longer applicable in 2020. Speak with a REALTOR today to find out how your IRS refund can stop your rent from going up when it comes time to renew your lease!

Pay for Closing Costs

Another way to use your refund in a smart way is to apply that money to your closing costs. It’s not uncommon for some costs to come up towards the end of a home purchase. Use this refund to remove the question of: “how are we going to pay for that?”

Lower Your Interest Rate

By using your IRS refund to pay off credit card and other debt you can fix your income to debt ratio which may help lower your interest rate when purchasing a home. This, also, will remove some monthly bills in your budget that can be allocated towards your mortgage payment. A lower interest rate and higher mortgage payment could be a great way to start off on the purchase of a new home.  

Using your IRS refund wisely can set you up for a very successful and prosperous financial future. Contact a REALTOR today to see how you can best invest your money!