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1110 Tuscarawas Avenue NW, New Philadelphia, Ohio 44663
April 15th is right around the corner. It’s well known as the day that your income taxes are due. As the deadline to file your taxes quickly approaches, many people dread their interactions with the “tax man.” Others, however, look forward to their tax refund more than Christmas.
Now, while most financial planners will tell you that lending your money to the government interest-free isn’t the best possible financial decision, getting a nice, big check from the government can feel great. Maybe you have some plans for that money, like a new TV, or a family vacation. But for a second consider depositing it into a special fund set aside for a down payment for a new home. A good refund can go a long ways toward realizing the dream of homeownership. The more money you put down, the stronger your negotiating position, the lower your payments and the less you end up paying overall. And the most common reason we hear for people to put off homeownership is the lack of a down payment.
According to the IRS, the average tax return is actually up about $100 from last year, with the average filer receiving almost $3,000 in their refund check. That amount of money can really put a dent in the down payment required on a new house, particularly if you’re taking advantage of an FHA-insured loan that requires just 3.5% down on a home purchase.
With the average home price in Tuscarawas County being around $130,000, that would mean a required down payment on an FHA-insured loan would be $4,550, which is a big chunk of change for the average family. But setting aside a tax refund of $3,000 takes out much of the sting of saving up that kind of money.
Of course, putting down 10% or 20% on a new house can increase your negotiating power and possibly eliminate the cost of mortgage insurance. Even with those amounts, using “found money,” such as your tax rebate, can help your family jump start the savings they need to move into that new home.
Whether or not you’re expecting a large tax refund, getting everything in order to purchase your first home, or even to upgrade your existing home, can be a confusing process. At McInturf Realty, we have highly trained agents that can get you on the right track to buying your dream home. Give us a call at 330-364-6648 for a no pressure, no commitment look at where you want to go and how best to get there. We can help.
1110 Tuscarawas Avenue NW
New Philadelphia, Ohio 44663
Phone: (330) 364-6648
Fax: (330) 364-2355