Happy Tax Day! Hopefully, you have sorted all of your 2012 tax matters. If you are expecting a refund – what will you do with it? We’ve put together a few tips to help you make the most of your income tax refund money.
How to Spend Your Tax Refund
- Make a Plan – It’s amazing how quickly an extra thousand or two can disapper if you have not created a plan for the money. If you have not considered where it would be best used – you are more likely to make impulse purchases with your inflated bank balance.
- Debt Reduction – Unless you have no debt, you could apply the majority of what you get back towards your debt – especially high interest debt common with revolving credit accounts. Paying down balances with higher interest rates will reduce the interest you pay over the life of the account.
- Adjusting Your Withholdings – If you received a large refund, you may be allowing the government to take too much of your money throughout the year. Maybe you just like getting a big check each year. However, paying more on on high interest debt through out the year may be the better option instead of overpaying the government. Consider all your options. A big refund basically means you’ve been giving the government an interest-free loan all year.
- Savings – If you have already paid off your high interest debt, consider an emergency savings fund, a vacation fund, or savings account dedicated to your home improvement dreams. A mortgage is generally not considered high interest debt. If you have a high interest rate on your home mortgage – refinance as soon as possible to take advantage of low fixed mortgage rates.
- Consider Homeownership – If you have not made the leap to homeownership, a tax refund may serve as a down payment, help you reduce your debt and improve your credit situation, or enable you to purchase necesssities for your new home. Get a free, no obligation, pre-approval from a licensed Inlanta Mortgage loan officer to determine how much you can afford.
Buy a Home
Ready to discuss homeownership and the home financing option best for your unique situation? Use our branch locator to find an Inlanta Mortgage loan officer near you. Can’t find a branch near you? Apply online here. We will connect you with an experienced loan officer who will guide you through the home buying process.
Inlanta Mortgage is proudly celebrating twenty years in business. Learn more about Inlanta’s twenty year history here.
Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.
Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.
This article is intended to provide general information and should not be considered legal, tax or financial advice. It’s always a good idea to consult a legal, tax or financial advisor for specific information on how certain laws apply to you and about your individual financial situation.