Using Your Tax Refund For Good

Using Your Tax Refund For Good

With the annual tax season officially over and “in the books,” (pun intended) many cash-strapped renters are receiving tax returns and seeing this as a great opportunity to use their tax refund as a down payment on a home of their very own. Getting off the “rental-go-round” is something nearly every renter dreams of doing, given all the benefits that come with home ownership, but the cash for a down payment stands as a hurdle for most prospective home buyers.

Every Little Bit Helps

For simple math, we will say that you are looking at a house that costs $200,000. This is a nice round number that makes it a bit easier to explain what a down payment will do for you and what you should consider when you start looking at how much you want to put down up front. Your lender or bank is taking a big risk on giving you a loan, so a down payment is a form of insurance that is going to make it more likely that you do not default. This is why a higher down payment is generally asked for.

Even though the average tax refund in 2016 was around $3,000, it’s still a sizable amount that can be used toward the down payment on a number of different types of home loans, even if only a part of it, especially for first-time owners. Add to that the fact that spring/summer is the most popular time of year to move and it seems to make more than enough sense. When you consider the fact that the more money you put down in the form of a down payment, the less you’re going to owe over the term of the loan, it makes good financial sense to put down as much as possible when you have the cash. Financial experts will always caution you against splurging with a tax refund, because not only did the federal government withhold a certain percentage of your income, but they did so without paying you any interest for it, so you should make sure to do something constructive with it. Tossing the money away on something frivolous that offers no value in return is like adding insult to injury.

Where To Start

To get started, look into community mortgages. Backed by the federal government, Fannie Mae and Freddie Mac are also offered by independent private lenders. The qualified professionals at MiLEND are more than happy to discuss the requirements for these programs prior to your application for a home loan to ensure that you’ll qualify when the time comes. For over two decades, MiLEND has helped thousands of home buyers make their American dream come true. Their helpful, licensed loan experts will take the personal approach to getting you approved for a home loan, refinance, reverse mortgage, or any one of their other helpful loan products or services.

Contact MiLEND today and see what all their loyal, satisfied customers have been saying all along. When you combine their level of world class customer service with the benefit of saving money, it becomes clear that MiLEND is the premier lender to use for all your loan and mortgage needs!