Tax Refunds Give Buyers Extra Cash to Buy First Home

WILMINGTON, NC – If you’ve been toying with the idea of buying your first home, now is the time to get serious.

There are several factors that make the first quarter of 2018 the perfect time for home buyers, especially first-time home buyers, to make the move.

At the top of the list is tax refunds. According to the IRS, the average American received a tax refund of $2,763 for 2016 taxes filed. That’s extra cash buyers can use to help cover closing costs, which are often seen as a hurdle to purchasing a home.

“Tax refunds are often seen as an opportunity to make a splurge purchase, but for those wanting to increase their net worth, it’s a chance to do so by buying a home. That’s means you stop making your landlord richer and start building your own wealth. Every mortgage payment is building equity in an asset you own,” says Kathleen Baylies, Broker in Charge of Just For Buyers Realty.

In addition to having extra money from your tax refund, here are four more compelling reasons to buy a home early in 2018.

1. Availability of down payment funds.
Some community banks offer first-time home buyers (defined as anyone who hasn’t owned a home in the past three years) down payment assistance programs in the form of zero-interest second loans or, even better, grants (i.e. free money!) It’s not unusual for the funds set aside for these programs to run out later in the year. Don’t miss out! Purchase early in the year.

2. Availability of no-down-payment loans.
The Veterans Administration and the United States Department of Agriculture (USDA) both offer 100% loans to qualified buyers.

3. Home prices are lower now than they will be next year.
Homes have increased in value by about 4% per year over the past few years. That means a $200,000 home, will likely cost $208,000 next year and $216,320 the year after that.

4. Mortgage interest rates are lower now than they are likely to be at the end of 2018.
The mortgage rate is still under 4%. Economists predict rates could be closer to 5% by the end of 2018. That extra percentage point means a payment difference of almost $120 per month on a $200,000 loan.

“When you combine the impact of rising home prices with rising interest rates, it’s easy to see that the longer you wait to buy a home, the more expensive it will be,” says Baylies.

This report is presented by Kathleen Baylies, Broker in Charge at Just For Buyers Realty. As the name implies, Just For Buyers Realty serves only buyers. In a state where buyers purchase real estate at their own risk, the company’s mission is to serve as Superheroes for Buyers, using all of the secrets of the trade to protect buyers at every stage of the process.

Contact Just For Buyers Realty by calling 910-202-4813 or by e-mail at [email protected], or visit www.JustForBuyersRealty.com.

 

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