Your Tax Refund Can Help You Achieve Your Homebuying Goals in Los Angeles and Beverly Hills, CA
Your Tax Refund Can Help You Achieve Your Homebuying Goals in Los Angeles and Beverly Hills, CA| Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
Are you a resident of Los Angeles or Beverly Hills, California, looking to buy a home this year? If so, you may be aware of the high cost of homeownership in these areas. According to Zillow, the median home value in Los Angeles is $785,000, and in Beverly Hills, it's $3.7 million. However, your tax refund can help you achieve your goals of owning a home in these high-value areas.
SmartAsset estimates that the average Californian will receive a tax refund of $2,135 this year, which is higher than the national average. This refund can help you cover some of the expenses involved in homebuying, such as a down payment or closing costs. You can use the extra money to increase your down payment amount, which may lower your monthly mortgage payments.
Moreover, using your tax refund to pay for closing costs can help you avoid paying these expenses out of pocket. Closing costs in California can be as high as 5% of the home purchase price. That means for a $500,000 home in Los Angeles, you could pay up to $25,000 in closing costs. However, using your tax refund can help you reduce this amount.
Additionally, buying down your mortgage interest rate with your tax refund can help you save money in the long run. According to Freddie Mac, paying upfront to lower your interest rate can save you thousands of dollars over the life of your mortgage. For example, if you have a 30-year fixed-rate mortgage for $500,000 with an interest rate of 4%, you could pay $6,000 upfront to reduce your interest rate to 3.5%. This could save you over $20,000 in interest payments over the life of your loan.
In conclusion, your tax refund can be a valuable tool in achieving your homebuying goals in Los Angeles or Beverly Hills, CA. To learn more about how you can use your tax refund to buy a home in these areas, consider working with a trusted real estate professional who understands the local market and can guide you through the homebuying process.