Trying to save for a home? Your tax return could be just the boost your down payment needs. Lower, the multi-channel fintech aimed at building wealth through homeownership, found the average tax return makes up 19% of the down payment needed for a median priced home.
Current home prices are averaging $375,000. If you put 5% down for a home, that means the average return of $3,552 would make up nearly a fifth of what you need for your down payment. For first time homebuyers looking to put 3% down, that figure jumps to more than a third of their needed down payment.
“We know it’s fun to take your tax return and splurge, but what could be better than investing in your future? A home is your greatest asset and using your tax return to boost your down payment will pay off significantly more than any other expense,” said Director of Banking and Insurance, Maria Kamlowsky. “A healthy down payment will help you build more equity over time and boost your wealth.”
