You've been building up your savings and imagining the day you finally get the keys to a place you can call your own. What you might not have considered is that your tax return could give you a nice little boost to help make that happen even sooner. As Freddie Mac puts it: 

 

“ . . . your tax refund from the IRS can be a useful supplement to your homebuying budget.” 

So, if you're getting a tax refund this year, why not put it to good use? It could help cover some of those upfront costs that come with buying a home—like your down payment or closing costs. And the best part?

 

On average, people are actually getting a bit more back in their tax refunds this year compared to last. It’s not a huge jump, but still a nice little boost. The graphic below shows IRS data that reveals the average refund is up by 3.9% this year:

 

 

Of course, the amount you get back on your tax refund will depend on your personal situation. But when you're looking to buy a home, even a little extra cash can make a big difference. According to Freddie Mac, here are a few smart ways you could put that money to work:

 

• Put it toward your down payment – One of the biggest challenges for buyers is saving up for that initial down payment. Using your tax refund to chip away at it could get you closer to your goal faster. And don’t forget—you don’t always need to put 20% down to buy a home.

• Cover some of your closing costs – These include things like the appraisal, title insurance, and loan processing fees. They usually add up to about 2% to 5% of the home’s purchase price. Using your tax refund to help with these costs can make closing day feel a lot less overwhelming.

• Reduce your mortgage rate – Some lenders offer the option to “buy down” your rate, which means you pay a bit more upfront to lock in a lower interest rate. If current rates and prices are stretching your budget, using your tax refund for this could be a smart move worth looking into.

But the good news is—you don’t have to figure it all out by yourself. Teaming up with experienced real estate pros who really get the homebuying process, know how much you’ll need to save, and can point you toward helpful resources can make all the difference. They’ll help you feel confident and prepared when you’re ready to make your move.

 

When you’re saving up for a home, every little bit counts. Your tax refund might not cover everything, but it can definitely give your homebuying savings a helpful boost and bring you one step closer to making it happen.

 

What would having a place to call your own mean for you or your family this year? Let’s chat about it and come up with a game plan to help you make it happen.