So your taxes are filed and now you are waiting for the refund to roll in.
Here are a few suggestions for that money that you may not have considered.
Rather than taking a vacation to Disney World, how about using the money for a down payment on a new home? With FHA loans you can borrow up to $271,000 and enjoy a minimum down payment of only 3.5 percent of the purchase price.
For example, if you are buying a $100,000 home, you can negotiate for the seller to pay your closing costs (costs associated with getting the loan) and put $3,500 down and your family will be living in their own home!
Another thought would be to buy a home where 100 percent financing is available (such as a rural development loan), use your tax money to pay for your closing costs, or buy new furnishings for the house.
If you currently own your home and are thinking about selling in the near future, you may want to consider investing your refund money in your current home. There have been a number of studies recently published that advise on what investments in your home provide the best return for future resale.
Call on an experienced Realtor to visit your home and help you decide to invest wisely, so that when you do sell, your home will be at its best.
Perhaps you have no desire to move in the near future but would like to lower your house payment. You may want to consider refinancing your home while interest rates are still at historic lows. Use the tax refund money to reduce the principal that you owe combined with lower rates to make the largest impact on your payment. A word to the wise, the Internet is a great place to research loan rates and terms, but when you get ready to pull the trigger, work with a LOCAL loan originator and avoid the internet processors. You will thank me later for this advice!
Whether buying for the first time, trading up or downsizing, a good place to start is with a local loan originator. You may find that the tax refund money is best used to pay down existing debt so that you qualify for a better home at a lower interest rate.
Regardless of which path you choose, start with a local real estate professional. They have the experience to help you achieve your goals and enjoy your home for years to come, verses a trip to Disney World, which only lasts a week.