If your goal this year is to purchase a home, but you’re finding it difficult to pull together at least 3.5%, using your tax refund might just be the answer to give your savings a boost.
Average tax refund
According to an article from CNN Money last April, the average federal tax refund last year was around $2800. With the average home price in Minnesota hovering around $184,900, a typical down payment with a FHA mortgage would be near $6472. $2800 from a refund could provide momentum to get where you need to be to purchase a home for your family.
Save for a down payment, but try to pay down debt too
Are you currently renting and having a hard time saving? Do you have revolving credit? It may be in your best interest to attempt to pay off your debt as well as continue saving for a down payment. A mortgage may be cheaper than what you are currently paying in rent, however costly repairs, utilities and other home expenses may adversely affect your budget. Buying a home will likely be your largest purchase and investment. A tax refund may gave you the needed cash to finally buy a home, just make sure you are financially ready.
Are you a first time home buyer? We’d love to help make your dream home a reality. Contact us today!
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