It’s Tax Season in Bergen County… Use Your Refund to Jump Start Your Down Payment Savings!
With tax season in Bergen County upon us it can be fun to think about what you will spend the extra cash on. But if you have real estate goals that money can be much better spent on a downpayment for a home. As you can see by the map below the average tax return in NJ is $2,959. When looking at a minimum downpayment amount of 3% (could be 0% if you qualify for a VA loan) you would need the following amount to buy the median home or condo in Bergen County:
- Median Condo in Bergen County: $330,000 so 3% is $9,900
- Median Home in Bergen County: $482,000 so 3% is $14,460
As you can see by these stats you would be well on your way to a downpayment on a median condo or home in Bergen County. Keep in mind these are median numbers and there are homes and condos for sale for much less than the median so you tax return can go even further.
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Bergen County Condos for Sale
|Under $400,000||Under $900,000|
|Under $500,000||Under $1,000,000|
|Under $600,000||Over $1,000,000|
Bergen County Homes for Sale
|Under $400,000||Under $800,000|
|Under $500,000||Under $900,000|
|Under $600,000||Under $1,000,000|
|Under $700,000||Over $1,000,000|
According to data released by the Internal Revenue Service (IRS), Americans can expect an estimated average refund of $2,840 this year when filing their taxes. This is down slightly from the average refund of $2,895, last year.
Tax refunds are often thought of as ‘extra money’ that can be used toward larger goals; for anyone looking to buy a home in 2018, this can be a great jump start toward a down payment!
The map below shows the average tax refund Americans received last year by state. (The refunds received for the 2017 tax year should continue to reflect these numbers as the new tax code will go into effect for 2018 tax filings.)
Many first-time buyers believe that a 20% down payment is required to qualify for a mortgage. Programs from the Federal Housing Authority, Freddie Mac, and Fannie Mae all allow for down payments as low as 3%, with Veterans Affairs Loans allowing many veterans to purchase a home with 0% down.
If you started your down payment savings with your tax refund check this year, how close would you be to a 3% down payment?
The map below shows what percentage of a 3% down payment is covered by the average tax refund by taking into account the median price of homes sold by state.
The darker the blue, the closer your tax refund gets you to homeownership! For those in Alabama looking to purchase their first homes, their tax refund could potentially get them 69% closer to that dream!
Saving for a down payment can seem like a daunting task. But the more you know about what’s required, the more prepared you can be to make the best decision for you and your family! This tax season, your refund could be your key to homeownership!
Who is Gibbons Team Real Estate
Gibbons Team Real Estate are the premiere real estate team in Bergen County with a wealth of experience representing both buyers and sellers realize their real estate needs. Our extensive local knowledge, marketing expertise, and passion for real estate make us the go to agents for so many in Bergen County. Contact us today to book an appointment where we can discuss your unique needs and answer any questions you may have.
Homes for Sale in Bergen County, NJ