While most people dread tax time, if you are getting a refund, this time of year can seem almost as rewarding as end-of-the-year bonus season. “Using your tax refund as a portion of your down payment can be a great idea,” said Clint Madison, a senior mortgage adviser with Envoy Mortgage in Walnut Creek, CA. “The more you put into the down payment, the less you have to borrow.”
The required down payment on a median-priced home, which the National Association of Realtors says was $189,000 in February, would be $6,615 with an FHA loan. If you opt for conventional financing, you would need at least $9,450 for 5% down, $18,900 for 10% down, or $37,800 for a 20% down payment.
“Putting down 20% eliminates the extra cost of mortgage insurance,” Madison said. “Even a more modest 10% would improve negotiating power and can provide better interest rates than a lower down payment.”
Call us now to find out how your Tax Refund can benefit you in your home buying experience this year ! ☎ 702.659.0258
Williams New Home Team
Black & Cherry Real Estate Group