4 smart ways to put your refund to good use
February 12 2019
Tax Day is just around the corner -- and that means a hefty refund could be, too.
If you are considering buying a new home in 2019, a tax refund could help get you that much closer to your goal of homeownership. If you already own a home, it could put you in a healthier financial situation or even save you money in the long run.
Here are four smart ways to use your tax refund toward your home this year:
1. Renovate your home. Use your refund to help pay for home improvements or bigger renovations. Make sure to choose your projects carefully, though. Check this resource for renovations that will add the most value to your home.
2. Add it to your down payment. A larger down payment can help you eliminate the need for private mortgage insurance, which lowers your monthly payment. It could also mean lower interest rates when applying for your mortgage, saving you even more cash down the line.
3. Pay off debts. Your existing debts play a significant role in your credit score, and therefore the interest rate you will qualify for when applying for a mortgage. Lowering your debt can boost your credit score, improve your debt-to-income ratio and improve your chances of qualifying for a loan to buy your dream home.
4. Make an extra mortgage payment. If you already own a home, use your refund to make an additional mortgage payment. Committing to one extra payment a year could shave months -- or even years -- off your loan term. That means less interest paid and more money in your pocket.
Are you thinking of buying a new home or renovating your current one? I can help you finance it. Contact me today for personalized guidance.