Tax Refund ? 3 Important considerations from Embrace Home Loans
Posted 14 April 2012 3:24 AM 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!
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