Use That Tax Refund for A Down Payment

The average tax refund was $2,860 for the majority of Americans last year. According to a survey by GO Banking Rates, 41 percent of Americans plan to save their tax returns. That savings could help put them on the path to homeownership.

Six percent of 18- to 34-year-olds say they plan to use their tax refund to purchase a car, home, etc., compared to 9 percent in the 35- to 44-year-old age group.

“With higher incomes and a tax refund of approximately $2,860, those who are most likely to purchase may actually be in good shape financially when it comes to being a future homeowner,” according to NAR’s Economists’ Outlook blog, which details the study. “While some may not have planned to use all or part of that $2,860 this year, next year is still a good strategy to plan ahead to use that refund or part of it for that down payment.”

Source: “Use Your Tax Refund for a Down Payment,” National Association of REALTORS® Economists’ Outlook blog (April 6, 2017)