Using a Tax Refund to Help You Purchase a Punta Gorda Home

Saving up to buy a home in Punta Gorda is no small feat. There are several costs associated with purchasing a home even if you are mortgaging your home. Many homebuyers realize that they will need to save up some money for a down payment and closing costs but some hopeful home buyers may feel like saving up this money can be incredibly difficult. The good news at this time of year is you can use your tax refund to help you purchase a Punta Gorda home.Using a Tax Refund to Help You Purchase a Punta Gorda Home

In most cases, a tax refund will not fully cover the out-of-pocket costs of when purchasing a home utilizing one but it can help to secure a large sum of the monies needed.

News from CNET shared, "The average refund size is up by 6.1%, from $2,903 for 2023’s tax season through March 24, to $3,081 for this season through March 22.”

The average American is receiving more from their tax refund and it is promising hopeful Punta Gorda homebuyers. This means a tax refund can go even further to help you purchase a home. Every individual American is going to have a different amount on their refund as compared to the next person but this money can be incredibly helpful for your home purchase.

Ideas for utilizing tax funds to help you purchase a home

Help complete that down payment

Many homeowners believe a major hurdle holding them back from affording a home is having enough money for a down payment. Taking your tax refund and putting it into your down payment fund will help you expedite your goals. With some mortgage loans, it could be just enough to get you to a spot of being able to shop for your Punta Gorda home.

Paying for closing costs

Closing costs are considered as several things but in general, it is the cost that you will need to finalize on putting together the paperwork and wrapping up mandatory requirements to get final approval met on your mortgage loan and get you to the final contract signing. These costs can amount to anywhere between two and 5% of the home purchase price. Some people decide to use their tax refund to help them pay for these costs.

Help to Lower Your Mortgage Rate

In some cases, a lender will offer (or allow you to upon asking) the option of paying down your mortgage interest rate. If you would be squeezing your budget to make ends meet for your mortgage payment, this could be a good option for you. This allows a homebuyer to pay some cash out of pocket up front to secure a lower interest rate over the entire life of the loan. Using this method may or may not pay off. We suggest that you thoroughly weigh the benefits and drawbacks of doing this to see if it is worth the cost. Make sure to seek the advice of a third-party (not the lender) financial professional to see if this would actually be worth spending the extra money upfront. 

A tax refund can be a significant chunk of money, especially this year when Americans are seeing bigger returns. using this money to help with your goal of purchasing a Punta Gorda home may be just the bit of extra monetary help you have been waiting for.

If you are looking for a Punta Gorda home, I am here to help. Contact me any time with any Punta Gorda real estate needs. I am happy to help you start searching for a home in Punta Gorda that meets your needs and checks off a few of those dream wants. Let's start finding your Punta Gorda home today. 

Post a Comment