Americans with tax refund checks may be starting to consider how to spend their money. Rather than using your tax refund for an impulse purchase this year, why not plan a practical use for the money? There are many awesome options that would allow you to invest wisely.
Down payment on a house – If you are considering purchasing a home, this could be an excellent time! Use your tax money toward a down payment on a new home. The more money you can put down, the less you will have to finance, which could allow you to have a lower monthly payment or purchase a higher priced home. The tax refund along with a Down Payment Assistance Program can help you get into a new home.
Pay off your credit card bills to raise your credit score – If you have high balances on your credit cards, use your tax refund to pay them off. This will do both your wallet and your credit score a favor. Remember, credit card balances should be kept at 30% or less of your maximum credit limit.
Make home improvements – Use your refund to make any home improvements that you may have been putting off. These can not only improve the value of your home but also increase the enjoyment you receive while living there.
Rebuild your emergency fund – If you have raided your emergency fund over the past few years, use your refund to rebuild it. This can help you avoid landing in credit card debt if you encounter an emergency. Keep the money readily available in a savings account that earns interest.
Save for an upcoming expense – If you have life expenses that you know will arise in the near future, such as vacations, purchasing new tires, or upgrading your home appliances, store your refund in a savings account for when these needs present themselves.
When you are ready to purchase a home, we would love to meet with you about your home buying options. Call us today to set up an appointment! Let’s put your tax refund to its best use! You can find a Wallick & Volk Mortgage Professional at www.wvmb.com.