Were you one of those fortunate enough to receive a large tax refund this year? Are you now wondering what to do with all that extra cash? It might be tempting to just go out and spend it all, but there are so many better ways to put that money to good use! Here are some smart ways to invest your tax refund this year.
Down Payment – If you have been considering purchasing a home recently, then putting your tax refund towards your down payment is a great option. It can be difficult to save for a down payment, even with minimum requirements as low as 3%. Use that refund to help you take the next step towards home ownership! The more money you have down, the less you have to borrow, and the lower your monthly payment will be.
Closing Costs – Another expensive part of purchasing a home is the closing costs. Closing costs usually range somewhere between 2.5 to 3 percent of the loan amount. People often overlook these expenses when purchasing a home and don’t budget for them. You can use your tax refund to give you some breathing room to help cover these expenses.
Remodel – Are you already a home owner? Consider using your refund to spruce up your home a bit or take care of those long needed repairs you’ve been putting off. A refund might not be enough to hire someone to remodel your kitchen, but with a DIY attitude you should be able to get a lot done with that extra money.
Refinance – Refinancing your home loan can be one of the best ways to save money, and the timing could not be better. Interest rates are extremely low right now and your credit has likely improved since you bought your home. Put the refund towards getting a lower interest rate and a lower monthly payment, which can save you much more money in the long run.
Whatever you spend your tax refund on is ultimately your decision. These are just some suggestions for how you can turn that money into more money and invest in your future. If you are wondering how your tax refund can help you purchase a home or refinance an existing home loan, contact one of our mortgage professionals today! We would be happy to assist you and answer any questions you may have.