Feb 28 2018 5018 1

Dated: 02/28/2018

Views: 68

It’s Tax Season… Use Your Refund to Jump Start Your Down Payment Savings!

It's Tax Season… Use Your Refund to Jump Start Your Down Payment Savings! | MyKCM

According to data released by the Internal Revenue Service (IRS), Americans can expect an estimated average refund of $2,840 this year when filing their taxes. This is down slightly from the average refund of $2,895, last year.

Tax refunds are often thought of as ‘extra money’ that can be used toward larger goals; for anyone looking to buy a home in 2018, this can be a great jump start toward a down payment!

The map below shows the average tax refund Americans received last year by state. (The refunds received for the 2017 tax year should continue to reflect these numbers as the new tax code will go into effect for 2018 tax filings.)

It's Tax Season… Use Your Refund to Jump Start Your Down Payment Savings! | MyKCM

Many first-time buyers believe that a 20% down payment is required to qualify for a mortgage. Programs from the Federal Housing Authority, Freddie Mac, and Fannie Mae all allow for down payments as low as 3%, with Veterans Affairs Loans allowing many veterans to purchase a home with 0% down.

If you started your down payment savings with your tax refund check this year, how close would you be to a 3% down payment?

The map below shows what percentage of a 3% down payment is covered by the average tax refund by taking into account the median price of homes sold by state.

It's Tax Season… Use Your Refund to Jump Start Your Down Payment Savings! | MyKCM

 

The darker the blue, the closer your tax refund gets you to homeownership!For those in Alabama looking to purchase their first homes, their tax refund could potentially get them 69% closer to that dream!

Bottom Line

Saving for a down payment can seem like a daunting task. But the more you know about what’s required, the more prepared you can be to make the best decision for you and your family! This tax season, your refund could be your key to homeownership!

Blog author image

Jeri Patrick

In today’s complex and difficult real estate market you need a professionals who will do whatever it takes to market and sell your home. Jeri Patrick has a team with an established history of succes....

Want to Advertise on this Site?

Latest Blog Posts

Sep 20 2018 5018 1

Is the Real Estate Market Finally Getting Back to Normal?The housing market has been anything but normal for the last eleven years. In a normal real estate market, home prices appreciate 3.7%

Read More

Sep 19 2018 5018 1

25% of Homes with a Mortgage are Now Equity Rich!Rising home prices have been in the news a lot lately and much of the focus has been on whether home prices are accelerating too quickly, as well as

Read More

Sep 18 2018 5018 1

Home Prices: The Difference 5 Years MakesCoreLogic recently released their Home Price Index Report. One of the key indicators used in the report to determine the health of the housing

Read More

Sep 17 2018 5018 1

If You Are Thinking of Selling? You Must Act NOW!If you thought about selling your house this year, now more than ever may be the time to do it! The inventory of homes for sale is well below

Read More