{"id":676,"date":"2022-02-25T17:36:58","date_gmt":"2022-02-25T22:36:58","guid":{"rendered":"https:\/\/volunteerhomemortgage.com\/?p=676"},"modified":"2022-02-25T17:38:44","modified_gmt":"2022-02-25T22:38:44","slug":"5-ways-to-use-your-tax-refund-to-buy-a-house","status":"publish","type":"post","link":"https:\/\/volunteerhomemortgage.com\/5-ways-to-use-your-tax-refund-to-buy-a-house\/","title":{"rendered":"5 Ways to Use Your Tax Refund to Buy a House"},"content":{"rendered":"\n[et_pb_section fb_built=”1″ theme_builder_area=”post_content” _builder_version=”4.14.8″ _module_preset=”default”][et_pb_row _builder_version=”4.14.8″ _module_preset=”default” theme_builder_area=”post_content”][et_pb_column _builder_version=”4.14.8″ _module_preset=”default” type=”4_4″ theme_builder_area=”post_content”][et_pb_text _builder_version=”4.14.8″ _module_preset=”default” theme_builder_area=”post_content” hover_enabled=”0″ sticky_enabled=”0″]
\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n Have you thought about how you\u2019ll use your tax refund? If you\u2019re like most Americans, you want to be strategic with these extra funds. <\/span>A study found<\/span><\/a> that about half of consumers put their refunds in savings, and about a third pay down debt.\u00a0<\/span><\/p>\n Those are great moves for future home buyers. But they aren\u2019t your only options. Today, we want to share five ways you can use your tax refund to buy a house \u2014 and how even your savings can be strategic! Let\u2019s get started!<\/span><\/b><\/p>\n <\/span><\/p>\n Every bit counts when you\u2019re saving for a down payment. Contrary to popular belief, lenders don\u2019t require you to have a full 20% down payment. However, they may have you pay for private mortgage insurance (PMI) if you can\u2019t meet that threshold. PMI is a monthly payment you make, on top of your house payment, to insure the lender until you\u2019ve paid off 20% of the house. So, the sooner you get to 20%, the better \u2014 and your refund can give you a big boost.<\/span><\/p>\n The <\/span>average tax refund is about $2,827<\/span><\/a>. Normally, it might take you months to save that amount. (In a sense, of course, it has! It\u2019s simply all the taxes you\u2019ve overpaid for a year.) But now you get it all in one big chunk. So, consider putting it toward your biggest expense. Not only will you reach your goal faster, but your rapid progress will encourage you to keep going!<\/span><\/b><\/p>\n <\/span><\/p>\n We mentioned paying off debt earlier. But why is that strategic for homebuyers?\u00a0 It\u2019s not just about having one less bill each month (though that certainly does help!). It\u2019s also about your credit score.<\/span><\/p>\n Did you know that about <\/span>30% of your credit score<\/span><\/a> is determined by your level of debt? Taking out some debt is good \u2014 if you make your payments on time and show that you can handle it. However, a high credit card balance or late payments can greatly damage your score. If you\u2019ve struggled with either of those things, consider putting your tax refund toward your debts. By lowering your debt balance, you can show lenders you\u2019re serious about your debts and raise your credit score.<\/span><\/b><\/p>\n1. Put Your Refund Toward Your Down Payment<\/h2>\n
2. Pay of Debt to Qualify for a Better Loan<\/h2>\n