As the deadline for filing taxes swiftly approaches, many Americans are hurrying to gather W-2s and 1099s. While the process of completing your taxes might be complex and time-consuming, it is a necessary task all Americans must accomplish once a year.
“Most Americans will get a tax refund.”
Tedious as it might be, there are some benefits that come out of it. If you’re 80 percent of the population, as soon as you get your taxes done, a refund will be headed your way. With this chore finally completed, it might be tempting to spend that check on a congratulatory treat.
Becoming a first time home buyer
There are better ways to spend that money, though. After all, it’s money you earned – not a gift from the government. The average tax refund is no small chunk of change, either. According to SmartAsset, the highest state refunds can be found in Connecticut at $3,125. Next is Texas at $3,033, then New York with an average return of $2,964. If you have a couple thousand dollars en route to your mailbox, consider using them to invest in your future; this is a great start for a down payment on a home.
For those first time home buyers who want to make a purchase sooner rather than later, but don’t have many funds saved up yet, there are programs that can help. Down Payment Assistance Programs can provide funds toward the down payment, closing costs or other fees associated with a home purchase. Lenox/WesLend Financial is one of the few lenders able to assist their buyers in this way by accepting various state and local assistance programs.
Not only can this year’s tax season serve as a springboard to your way of becoming a first time home buyer, but there could be plenty of advantages when this time comes around next year. There are many tax savings opportunities related to being a homeowner.
For instance, the interest you pay on your mortgage is tax deductible. If you choose to pay mortgage points to secure the loan, those can also be deducted, according to Nolo. If your down payment wound up being less than 20 percent of the home’s sale price, you may have also bought private mortgage insurance. These payments, too, are tax deductible.
For more information about how you can use your tax refund toward your first home purchase, talk to the experts at Lenox/WesLend Financial or call 844-225-3669. As heard on the radio, it’s the biggest no-brainer in the history of mankind.