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Are you thinking about using your tax refund to finally purchase a home in 2019?

Buying a home costs a lot of money! Between the purchase price of the home, down payment, appraisal fees, title fees, escrow fees and others- it really can add up to some BIG numbers. But don't let those numbers scare you out of reaching your goal of being a homeowner this year. Being prepared early-on with what to expect can help you obtain your financial goals- especially if buying a home is on your radar. One of the best ways many first-time homebuyers utilize their dream of buying a home is by using their tax refund.

The IRS estimated that 155 million individual tax returns were filled in 2018, and those expecting a large return are already looking for ways to use the money.

Tax time is right around the corner, and if you’ve been thinking about buying a home, consider using your tax return towards this purchase- after-all, it’s not every day you get a large sum of money!

Here are three ways your tax refund can come in handy for purchasing a home:

1) Saving for a down payment.

For most, one of the biggest obstacles to homeownership is the down payment. However, don’t fall into a common trap and overestimate the size of the down payment you need. In some cases, it is actually less than you thought!

We recommend that you speak to a mortgage professional who can help you determine the size of a down payment you will need to save for, based on the best mortgage that suits your needs.

We offer this service free of charge for any prospective homebuyer who is looking to embark on the home buying journey. Using your tax refund to jump-start the saving process will motivate you to work towards your goal of homeownership!

2) Use the money for closing costs

Typically, a certain percentage of the home’s purchase price includes closing costs.

Closing costs can vary widely based on where you live, but you can find out more by contacting a knowledgeable Sierra Pacific Mortgage Processional.

Regardless, putting your tax refund towards your closing costs can help you check off one more financial obligation on your path to homeownership!

3) Lower your interest rate

You can also use your refund by purchasing what’s called “discount points.” This effectively means you can make an upfront interest payment to lock in a lower interest rate on a fixed-rate mortgage.

So why would someone want to do this? Generally, most people buy down their rate up-front to save in interest payments over the life of the loan. To see if this would be a good idea for your particular situation, contact our offices and let us run you some mortgage scenarios that align with your goals.

Your Bottom Line

As you can see, there are several ways to use your tax return. If you’ve been thinking about purchasing a home, consider the above options and contact our offices so you can get started with your plan to homeownership!

More about Team Franco


If you're shopping for a home in Nevada, California, Colorado, Arizona or Texas, but are not sure where to begin, give me a call and get a free mortgage quote. I'll help you determine the amount of home you can afford.

Our team's dedication to helping our clients prove how we stand out from our competition. Read our past client reviews and testimonials here.


I'm here to help- call me today!

Franco Manueli

Branch Manager & Residential Mortgage Loan Originator

NMLS #332420

2580 St. Rose Pkwy., Suite #230

Henderson, NV 89074

Office: (702) 420-2250

Fax: (855) 689-6691


Some products and services may not be available in all states. Programs, rates, terms, and conditions are subject to change without notice. Subject to verification of borrower qualifications, property evaluations and credit approval. Terms and conditions apply. This is not a commitment to lend and not all borrowers will qualify. Sierra Pacific Mortgage Company, Inc. may not be the lender for all products offered. Some loans may be made by a lender with whom Sierra Pacific Mortgage has a business relationship. Sierra Pacific Mortgage Company, Inc. NMLS #1788. Nevada Commissioner of Mortgage License #3268. Additional license info available at: Equal Housing Lender.

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