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Mortgage Monday: Practical Uses for Your Tax Refund

April 15 is the 2020 tax deadline in the United States. Americans expecting tax refunds may be starting to consider how to spend their extra money. Rather than using your tax refund for an impulse purchase, why not plan a practical use of the money? Here are some awesome ways to invest wisely.

Make a down payment on a house

If you are considering buying a house, 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 buy a higher priced home.

Pay off credit card bills to raise your credit score

If you have high balances on one or more 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 no more than 30% of your maximum credit limit.

Implement 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 your enjoyment while living there. (Renovation loans are available, and I am happy to talk you through how they can help.)

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 in the event of an emergency. Keep the money readily available in a savings account that earns interest.

Save for an upcoming expense – If you have upcoming life expenses such as vacations, the purchase of new tires, or upgrades to your home appliances, store your refund in a savings account for when these needs arise.

When you are ready to purchase a home, we would love to meet with you about your home buying options. Call today to set up an appointment! Let’s put your tax refund to its best use!

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