Expecting A Tax Refund? Is Your Refund The Key To Your New Home?

By
Real Estate Agent with Coldwell Banker Residential Brokerage

 

Get The Most Out Of Your Tax Refund

It's April 15th... that means today is deadline day to file your taxes. Or maybe you've already filed your taxes and received your tax refund but haven't yet spent it and are wondering what to do with the money. Whether you've received your tax refund or are still waiting for it, are you thinking about buying the home of your dreams but aren't sure how to come up with a down payment or closing costs? Maybe your tax refund is your key to buying a home.

 

According to data released by the Internal Revenue Service (IRS), Americans can expect an estimated average refund of $3,143 this year.

 

Many buyers still believe that a 20% down payment is needed to qualify for a mortgage. It's not! Loan programs from the Federal Housing Authority (FHA), Freddie Mac, and Fannie Mae allow for down payments as low as 3%. There are conventional loan programs, also, that allow for a 3% down payment. Veterans Affairs Loans (VA) allow many veterans to purchase a home with 0% down.

 

 

4 Ways To Use A Tax Refund To Help Buy A Home

  1. Smart Ways To Use Your Tax RefundDown Payment: apply your tax refund towards a down payment. For some home buyers who qualify, combine the down payment from your tax refund with an approved down payment assistance program and you get even great purchasing power.

  2. Closing Costs: apply your tax refund to help cover closing costs and other expenses associated with purchasing a home (surveys, inspections, apparaisals, etc.).

  3. Buy Down The Interest Rate. Even though interest rates remain lower than a year ago, buying down your interest rate with your tax refund could save you a lot of money over the course of a mortgage loan's life.

  4. Pay Down Existing Debt. If your debt to income ratios are a bit high to get qualified for a mortgage loan even though you have cash for a down payment and closing costs, paying down some existing debt with your tax refund could decrease your debt to income ratio and maybe even increase your credit score. Don't forget that your credit score also influences the interest rate you pay on a mortgage.

 

What Percentage Of A 3% Down Payment Is Covered By The Average Tax Refund?

In North Carolina, the average tax refund can cover up to 52% of a down payment. In South Carolina, it can cover up to 56% of a 3% down payment (based on the median price of homes sold in these two states).

 

States Where A Tax Refund Covers a 3% Down Payment

 

 

You've heard it before --  homeownership builds net worth and wealth. There are plenty of reasons to buy a home this spring. With low interest rates, now is the perfect time to buy a home. This tax season, your tax refund could just be your key to homeownership!

 

 

If you're thinking of using your tax refund to buy a home this spring season, check out our FREE

Spring 2019 Buyer Guide: Things To Consider When Buying A Home

 

Home Buyer Guide Spring 2019

 

 

 4 REASONS TO BUY A CHARLOTTE REGION HOME IN SPRING 2019

 

 

 

SEARCH FOR YOUR DREAM CHARLOTTE REGION HOME

 

 

 Find Your Charlotte Dream Home

 

 

 

Nina Hollander/Great Homes In Charlotte Can Help You Find Your Dream Charlotte Home This Spring

 

We've been opening doors for Charlotte region home buyers for 20+ years. I'd love an opportunity to earn your business, to exceed your expectations, and to show you how:

 "The Right Broker Makes All The Difference."

 

  Great Homes In Charlotte

 

 

Smart ways to use your tax refund image credited to She + He Eat Smart

Posted by

 

SEARCH ALL CHARLOTTE METRO AREA HOMES HERE

 

 Nina Hollander, RE/MAX Broker, Realtor

 

 

 

 

 

 

Nina Hollander

Broker, Realtor, MBA, GRI, ABR, SRES, CDPE, SFR, SPS, CMRS
Carolinas Realty Partners with Coldwell Banker Residential Brokerage
Direct: 704-779-0813
Website: www.GreatHomesInCharlotte.com
Blog: News You Can Use From Charlotte/Ballantyne/Waxhaw/Fort Mill
Search For All Charlotte Area Homes: www.GreatHomesInCharlotte.com 

2007 - 2018 Charlotte Magazine 5-Star Customer Satisfaction Award Winner

 

 Connect with me also on these sites:  

 

facebook google plustwitterlinkedinpinterest

  

                                                                                                                                          

Oh by the way, I'm never too busy for any of your referrals!

 

Find Your Charlotte Home

 

How Much Is My Home Worth       Free Charlotte Relocation Package

 

 

 

Disclaimer:  Nothing in this blog article is to be construed as legal advice, tax advice, or financial advice.  For legal advice see an attorney.   For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
North Carolina
Groups:
Charlotte NC Real Estate
Charlotte North Carolina Area
Buyer Information - What Buyers Need to Know in Today's Market
Advice for Buyers
Tags:
taxes
tax refund
free home buyer guide
great homes in charlotte
search charlotte nc area homes for sale
using your tax refund to buy a home
smart ways to use your tax refund
top reasons to buy a home this year

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
502,623
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Thanks for sharing! I am amazed how many people think they can't buy a home with some preconceived notions!!!

Maybe you've already filed your taxes and received your tax refund but haven't yet spent it and are wondering what to do with the money. Whether you've received your tax refund or are still waiting for it, are you thinking about buying the home of your dreams but aren't sure how to come up with a down payment or closing costs? Maybe your tax refund is your key to buy a home.

Apr 15, 2019 04:13 AM #1
Rainmaker
4,877,756
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Those who did get a refund, Nina Hollander would be wise to call you for guidance with sitting with the right lender for a preapproval and going forth with you to find the right home.... their tax return will be better next year.... and the equity in their new home will improve their position with attaining financial independence....

Apr 15, 2019 04:15 AM #2
Rainmaker
2,982,593
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Sham Reddy good morning, Sham... thanks for stopping by and leaving a comment. I keep coming across many of the same pre-conceived notions in the home buying public year after year. Always amazed that they don't seem to go away.

Apr 15, 2019 04:16 AM #3
Rainmaker
2,982,593
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Barbara Todaro good morning, Barbara, and amen to that! Let's face it, getting a tax refund is not a "gift" from the government, but basically an indication that someone overpaid their taxes and have the government a tax free loan for a year. At least if one is due a refund it should be put to good long-term use.

Apr 15, 2019 04:18 AM #4
Rainmaker
1,649,827
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

this is a great idea for new home buyers!  I like your thoughts and Barbara's about tax refunds! LOL I never have to worry about tax refunds! 

Apr 15, 2019 04:36 AM #5
Rainmaker
2,982,593
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Lise Howe good morning, Lise. I was just thinking about you this morning and wondering where you'd been recently as I hadn't seen much of you in the Rain. And here you are!

We don't worry about tax refunds either, but my husband calibrates our tax payments throughout the year very carefully to ensure we don't over or under pay.

Wishing you a great week ahead.

Apr 15, 2019 04:38 AM #6
Rainmaker
3,767,035
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Nina Hollander,

Great post and I'm sure you will receive some calls from those finding a tax refund in their new future! Many will find their increase in their refund can help them in obtaining more financial freedom.

Apr 15, 2019 04:56 AM #7
Rainmaker
2,982,593
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Dorie Dillard CRS GRI ABR good morning, Dorie. Thanks for popping by... wishing you a great week ahead.

Apr 15, 2019 05:00 AM #8
Rainmaker
3,127,304
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Home and Condo Specialists

These are smart ideas Nina for those lucky enough to expect a tax refund this year!

Apr 15, 2019 05:25 AM #9
Rainmaker
2,982,593
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 hi Sheila and Larry.... thanks. Wanted to write something around tax filing day that had a postive message.

Apr 15, 2019 05:50 AM #10
Rainmaker
1,851,898
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Nina - this is timely for today.  I think that many have used a refund for their down payment.  I know of a few cases myself.

Apr 15, 2019 06:46 AM #11
Rainmaker
2,982,593
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Grant Schneider good morning, Grant... and happy Monday. Of course, that was the whole idea to post this on tax filing day to underscore the message. As I've often said, there is a method to my madness! 

Apr 15, 2019 07:12 AM #12
Rainmaker
3,076,173
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Nina Hollander,  I agree that the key to your dreams can be the start of a refund and future refunds for that deduction.

 

Apr 15, 2019 07:28 AM #13
Ambassador
3,046,780
Paul S. Henderson, REALTOR®, CRS
RE/MAX Northwest. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

Wow I did not realize how much difference there was between our 2 states on this question, Nina Hollander 

Apr 15, 2019 08:09 AM #14
Rainmaker
1,567,321
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

Nina Hollander my tax return has never been an important part of my purchase of a home but there have been lean years where it really helped me hang on to my home. 

Apr 15, 2019 11:30 AM #15
Rainmaker
2,982,593
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Bob "RealMan" Timm hi Bob... at the end of the day, whatever works... a tax refund can be helpful to home owners to pay down principal, to home sellers to make needed improvements.

Apr 15, 2019 11:34 AM #16
Rainmaker
2,982,593
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Paul S. Henderson, REALTOR®, CRS hi Paul... it's why I say real estate so local and in Charlotte area very hyper-local as well. Then again, most real estate costs more at your end of the world than mine.

Apr 15, 2019 11:35 AM #17
Rainmaker
2,982,593
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Will Hamm hi Will... I actually don't believe in tax refunds... if you're getting refunds you've been giving the government a tax free loan for a year. I say balanced out your deductions so you don't owe and you don't lend a lot to the government. But if you do get a refund, then put it to good use.

Apr 15, 2019 11:36 AM #18
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
2,982,593

Nina Hollander

Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor
What real estate questions can I answer for you today?
*
*
*
*
Spam prevention

Additional Information