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Leveraging a Tax Refund: Your Financial Future

With some planning and dedication, a little cash can go a long way.

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If you’re one of the more than 150 million taxpayers filing a return this year, you may be wondering how best to spend the refund. Here are seven smart ways to leverage your tax return and realize your financial future.

Save for a down payment

According to a study by the National Association of Realtors, 58% of buyers in 2018 sourced a down payment from their savings. Depositing this extra income, and allowing it to compound on itself, followed by some discipline and a plan could bring you that much closer to homeownership.

Pay off debt

Mortgage or otherwise, extra monthly payments can greatly change remaining balance over time. As you likely haven’t included a refund in your budget, you may find it easier to contribute all or some of this money to your debt.

Save for closing costs

Closing costs can potentially run you about $6,250 on average and may blindside first time buyers. Allocating funds ahead of time can prevent stress and free up earnings to put more down or make a larger mortgage payment.

Save for a rainy day

Homeownership is unpredictable. From storm damage to break ins, it never hurts to have a rainy-day fund. Plus, for first time buyers, any unexpected charges after such a large investment can be disheartening. Start saving today to keep your financial future bright.

Make needed repairs

Have you been pushing a leaky roof or plumbing issue to the back of your mind? While you can DIY many home repairs, seek a professional for major fixes. A refund could offset those hefty hourly rates and your future self will thank you.


A refund is the perfect opportunity to alter anything you don’t love. Plus, renovating a home shortly after purchase may fast track an increase in equity. Homeowners generally have found the greatest return on investment with updated kitchens and bathrooms, increased curb appeal and additional square footage.

Invest in smart features

If you’re not up for a renovation, you can also increase your home’s value with smart home technology. Millennials in particular are drawn to homes with upgraded technology and, as the largest demographic of homebuyers today, will provide a great return on investment.

Still not sure how to navigate the financials of the current housing market? Experienced loan originators in the Motto Mortgage network are ready to help make your homeownership dream a reality. It’s what they do best.

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