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One way to give your tax refund legs is to invest it in your home. While the housing market may still be experiencing difficulties, real estate remains a great long-term investment. BMO Financial Group offers the following real estate-related options for your tax refund:

First-Time Homebuyers
Today’s historically low interest rates along with more reasonable home prices make home buying a great opportunity and a tax refund can be used toward a down payment. There are a number of loan options along with grant and down payment assistance programs that are perfect if you are a first-time homebuyer. But, before you set out to buy a home, it’s best to talk with a mortgage professional and be pre-approved.

Refinance Your Home
With rates at historical lows, refinancing may help a homeowner lower their rate or change the length of the loan’s term, allowing them to pay off their loan quicker and save money on interest. It’s best to check with a mortgage professional you trust who can help determine if a lower rate or different loan term makes the most sense for your personal situation.

When considering refinancing, people often worry that appraisals and closing costs will outweigh the minimal monthly savings gained. Determine how long you plan on staying in the home you’re refinancing. Sometimes closing costs can be recouped in monthly savings over a longer period of time. An alternative is to use your tax refund to pay closing costs.

Pay Down Your Mortgage
Paying down your mortgage with your tax refund is also a great way to decrease your debt and increase equity in your home. If you plan on staying in your home for at least the next three to five years, consider investing your tax refund toward the principal of your mortgage

While February existing-home sales declined from an upwardly revised January pace, they are well above a year ago, according to the National Association of REALTORS® (NAR). Sales were up in the Midwest and South, offset by declines in the Northeast and West. NAR also reported that the median home price posted a slight gain.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, slipped 0.9 percent to a seasonally adjusted annual rate of 4.59 million in February from an upwardly revised 4.63 million in January, but are 8.8 percent higher than the 4.22 million-unit level in February 2011.

Lawrence Yun, NAR chief economist, said underlying factors are much better compared to one year ago. “The market is trending up unevenly, with record high consumer buying power and sustained job gains giving buyers the confidence they need to get into the market,” he reports. “Although relatively unusual, there will be rising demand for both rental space and homeownership this year. The great suppression in household formation during the past four years was unsustainable, and a pent-up demand could burst forth from the improving economy.”

NAR President Moe Veissi said market conditions are improving. “Supply and demand have become more balanced in more markets, but with tight supply in the lower price ranges – particularly in the West,” he explains. “When markets are balanced, we normally see prices rise one to two percentage points above the rate of inflation, but foreclosures and short sales are holding back median prices.”

The national median existing-home price for all housing types was $156,600 in February, up 0.3 percent from February 2011. Distressed homes—foreclosures and short sales sold at deep discounts—accounted for 34 percent of February sales (20 percent were foreclosures and 14 percent were short sales), down from 35 percent in January and 39 percent in February 2011.

HomeGain.com, an online real estate resource that connects home buyers and sellers with real estate professionals, announced the results of its For Sale By Owner (FSBO) vs. REALTOR survey.

HomeGain surveyed over 1,000 homeowners asking whether they used a REALTOR to sell their home or whether they attempted to sell it themselves. Eighty-three percent said they used a REALTOR to sell their home and 17% said they tried to sell their home on their own.

Fifty-nine percent of homeowners that used a REALTOR to sell their home were successful vs. 39% of FSBOs, reflecting a 50% higher closing rate for those home sellers using a REALTOR .

Eighty-one percent of homeowners that used a REALTOR to try and sell their homes said they would use a REALTOR again for their real estate needs. Eighty-eight percent of homeowners who sold their homes using a REALTOR said they would use a REALTOR again.

Seventy-one percent of FSBOs who managed to sell their homes on their own said they would try and sell their home on their own again.

“It is especially striking that homeowners fare significantly better in selling their homes using a REALTOR than selling on their own,” said Louis Cammarosano, General Manager of HomeGain. “Due to that relative success, the level of satisfaction in the home selling process is also higher for home sellers utilizing the services of a REALTOR than those who try to sell their homes on their own.”

The survey also pointed out that 24% of FSBOs eventually enlisted the aid of a REALTOR to help sell their homes.

For more information, visit www.HomeGain.com.

This just in: One-third of Americans would choose their dream home over their dream significant other! These and other interesting statistics come from a recent survey conducted by Rent.com about love in order to better understand renter habits about relationships and moving in together. Here are a few other highlights from the survey data:

• 28 percent of men have delayed a break-up with someone they were living with because they didn’t want to look for a new place to live, while in comparison, 21 percent of women have done the same.
• While 39 percent of respondents aged 18-34 have delayed a break-up with someone they were living with because they didn’t want to look for a new place to live, only 22 percent of respondents aged 35-54 and 17 percent of respondents aged 55+ have done the same.
• 37 percent of those who delayed a break-up waited one year or more to end ties with their significant other, while 35 percent waited six months and 28 percent waited 3 months.
• 40 percent of females who delayed a break-up waited one year or more to end ties with their significant other, while 32 percent of males waited one year or more.
• 29 percent of females would choose their dream home over their dream significant other, while 32 percent of males would choose their dream home over their dream significant other.
• 25 percent of respondents aged 55+ would choose their dream home over their dream significant other, while 44 percent of respondents aged 18-34 would choose their dream home over their dream significant other.

U.S. existing home sales rose 5 percent in December 2011 from a year ago to 4.61 million units annualized. While slightly below expectations, the trend is still positive and could lead to more buyers coming off the sidelines, according to BMO Economics and Harris Private Bank.

“December’s gain was the third rise in a row and is the highest number of sales since January of last year. It is now up 40 percent from the lows hit in July 2010,” said Doug Porter, Deputy Chief Economist, BMO Economics.

For all of 2011, sales climbed 2.5 percent to 4.29 million units, fully erasing a drop of 3.4 percent in 2010. Sales of single-family homes are up for the third straight month—hitting a 1 1/2-year high, and condos posted a sizable gain, reaching an 8-month high.

The backlog of total existing homes as well as single-family units dropped around 10 per cent last month to their lowest levels since 2005.

“The combined effects of record low mortgage rates, near record high affordability, a more promising economic recovery, job creation, and low prices are beckoning homebuyers out of the woodwork,” added Porter.

The share of homes bought by first-timers dropped to 31 per cent while repeat purchasers rose to 48 percent.

Jack Ablin, chief investment officer for Harris Private Bank, noted the increased activity may give the overall market a boost of confidence. “While some buyers may believe that better deals will be available for those that wait, stable prices and increased activity will go a long way to instill some urgency into buyers’ psyche,” he added.

“We are seeing some very encouraging signs in the housing sector and rising consumer confidence all of which is helping to drive this positive trend,” said Randy Raup, Senior Vice President of Retail Lending. “With interest rates at historic lows and housing prices appearing to be stabilizing, more consumers have been contacting our branches and mortgage loan officers to determine which of our various mortgage loan products best meet their financial and home ownership goals.”