Tax Refund ? 3 Important considerations from Embrace Home Loans
Posted 04/14/2012 by Anonymous
As the Federal Personal Income Tax Deadline approaches, anyone who anticipates getting a tax refund naturally will want to consider what to do with the extra money.
Have you thought about using your tax refund to invest in your home.
With interest rates and home prices continue to stay at historical lows creating a once in a life time opportunity for many to take advantage of the housing market.
Each of us has unique financial needs and should consider the best way to put our tax refund to work for our specific situation. Some people need to establish a savings account or pay down high interest credit card debt.
Which of the following options below best fit your housing situation? Talk with an expert at Embrace Home Loans in order to make your tax refund work for you.
1. First-Time Homebuyers
Buying a home in today's market may make a lot of sense. Taking advantage of today's historically low interest rates along with depressed home values make home buying a great opportunity and a tax refund can be used toward a down payment. Typically, down payments are 3 to 20 percent of the home's selling price. There are a number of loan options along with grant and down payment assistance programs that are perfect if you are a first-time homebuyer. But, before you set out to buy a home, it's best to talk with a mortgage professional at Embrace Home Loans and be pre-approved.
2. Refinance Your Home
With rates at historical lows, refinancing may help a homeowner lower their rate or change the length of the loan's term allowing them to pay off their loan quicker and save money on interest. It's best to check with an Embrace Home Loans mortgage professional who can help determine if a lower rate or different loan term makes the most sense for your personal situation.
When considering refinancing, people often worry that appraisals and closing costs will outweigh the minimal monthly savings gained. So how do you know when these expenditures are a good investment in exchange for a lower rate?
The first step is to determine how long you plan on staying in the home you're refinancing. In many cases, closing costs can be recouped in monthly savings over a longer period of time. An alternative would be to use your tax refund to pay closing costs.
3. Pay Down Your Mortgage
Paying down your mortgage with your tax refund is also a great way to decrease your debt and increase equity in your home. If you plan on staying in your home for at least the next three to five years, consider investing your tax refund toward the principal of your mortgage.
Call and speak with an Embrace Home Loans specialist today!
Embrace Home Loans, Inc. is a Licensed Mortgage Lender in AR, CO, CT, DC, DE, FL, IA, ID, IN(#10918 & 6034), KY, LA, MD, ME, MI, MN, NC, ND, NM, OH, OK, OR #ML3228, RI, SC,TN, TX; In Texas, most recent mortgage must be at least 12 months old; UT, WI; Authorized to do business in AL #MC20954, Licensed Mortgage Banker in AZ #0906375), Licensed by the Department of Corporations under the CA Residential Mortgage Lending Act. CO Residents; To check the status of your mortgage broker, http://www.dora.state.co.us/real-estate/index.htm. GA Residential Mortgage Lender (#12848); IL Residential Mortgage Licensee. KS Supervised Lender Licensee (#SL.0000625); Licensed in MA as a Mortgage Lender and Mortgage Broker (#MC0195); Authorized to do business in MO. Mississippi Registered Mortgage Company; Licensed Mortgage Banker in NE, Licensed by the NH Banking Department (#5985MB); Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker by the NY State Banking Dept.; Licensed by the PA Department of Banking as a Mortgage Lender; Licensed by the Virginia State Corporation Commission (#MC761); WA Consumer Loan License (520-CL-26259); Licensed Mortgage Banker in WV. Corporate National Mortgage Licensing System (NMLS) #2184
Embrace Home Loans is an Equal Housing Lender
Embrace Home Loans is an accredited business of the Better Business Bureau
About Embrace Home Loans
We're a direct lender for Fannie Mae, Freddie Mac, and an approved Ginnie Mae issuer for FHA insured mortgages. With Embrace Home Loans, you can get the loan you need. As a direct lender, you deal with us, and only us. We'll lend you the money you need, whether it's for a new home, a home renovation, a college education, or to get ahead on your high-interest debt. And we can do it in as little as 21 days. Don't put off your brighter tomorrow. Fill out our quick, no-obligation, and confidential form. Or call 1-800-620-6292.