Saving Up To Buy a Home in Massachusetts? Your Tax Refund Could Help You Get There Faster

If you’ve been diligently saving up to buy a home in Massachusetts—whether you're dreaming of a cozy condo in Boston, a family home in Worcester, or a quiet retreat in the Berkshires—your tax refund might give your plans a helpful boost.

As Freddie Mac explains:

“. . . your tax refund from the IRS can be a useful supplement to your homebuying budget.”

This year, IRS data shows the average refund is about 3.9% higher than it was last year. While that extra amount might not be huge on its own, it can absolutely make a difference when you're trying to cover the upfront costs of buying a home in Massachusetts—where median prices and closing expenses can be higher than the national average.

Here’s How You Could Put Your Refund to Work

1. Put It Toward Your Down Payment
Many buyers believe they need 20% down, but that’s not always the case. There are programs available in Massachusetts—including MassHousing and ONE Mortgage—that allow for lower down payments with favorable terms. Your tax refund could help you bridge the gap.

2. Cover Closing Costs
In Massachusetts, closing costs can average between 2% and 5% of the home’s price, depending on location and lender fees. That includes things like attorney fees, title insurance, and prepaid property taxes. Putting your refund toward these costs could ease the financial load when you’re ready to close.

3. Buy Down Your Interest Rate
In today’s rate environment, every fraction of a percent matters. If your lender offers a rate buy-down option, using part of your refund to reduce your mortgage rate could save you significantly over the life of the loan. Ask your lender if this strategy might work for your situation.

4. Strengthen Your Financial Profile
Not quite ready to buy yet? Consider using your refund to pay down credit card balances or other debts. Improving your credit score could open up better loan options and interest rates when the time is right.

Work With a Team Who Knows Massachusetts

Buying a home is a big step, and you don’t need to figure it all out alone. A local REALTOR® and a trusted lender can help you understand how to maximize your savings, explore first-time homebuyer programs, and map out a plan that fits your budget and timeline.

Bottom Line

Saving for a home takes time, but every little bit helps. If you’re receiving a tax refund this year, consider putting it toward your homebuying goals. Whether you use it for a down payment, closing costs, or debt reduction—it’s a step closer to unlocking the door to your future home.