Tax season is winding down, and if you are getting a refund, that money is about to hit your account. Most people spend it before they even have a plan. If buying a home has been on your mind, this is a moment worth paying attention to.
Here is something IRS data is actually showing this year: the average individual refund is up 11.1% compared to last year, jumping from $3,170 in 2025 to $3,521 in 2026. In a market like Seattle where every dollar you bring to the table matters, that kind of boost can genuinely move the needle.
So before that money disappears into daily life, here are three specific ways to put it to work.
Put it toward your down payment. A lot of buyers in Washington State assume they need 20% down to get started. You do not. Depending on the loan program you qualify for, you may be looking at 3% to 5%, and in some cases even less. The Washington State Housing Finance Commission also offers down payment assistance programs like the Home Advantage loan that many buyers never even ask about. If you have been slowly building your savings, your refund combined with a state program might get you to the finish line faster than you expect.
Put it toward closing costs. Closing costs catch buyers off guard every single time. In Washington State, buyers typically see closing costs run between 2% and 5% of the purchase price. On a $600,000 home in the Seattle area, that is $12,000 to $30,000 on top of your down payment. Using your refund here means you are not scrambling at the end of the transaction when you should be celebrating.
Use it to buy down your mortgage rate. You can pay points upfront at closing to reduce your interest rate over the life of the loan. If you plan to stay in the home long enough to recoup the upfront cost through lower monthly payments, it can make real financial sense. Ask your lender to run a break-even analysis so you know exactly when it pays off.
If you are ready to find out what your tax refund could actually do for you in this market, let’s talk. I have been helping buyers navigate Seattle and the surrounding area since 2003, and I can give you a real picture of where you stand, what you need, and what your next step looks like. No pressure, no generic advice. Just a straight conversation. Reach out at [email protected] or visit www.teamreba.com to get started.
