Cash Back Programs
You could get up to 5% cash back of your mortgage amount, if you need to replenish your resources after a purchase where you used all your savings for the down payment and closing costs, or to cover the discharge penalty if you are refinancing. But going for the cash-back offer comes at a cost in the interest rate you will receive. Typically, the 5% cash-back is offered when taking the 5 year term at posted rates rather than discounted rates, so the rate differential could be 1.75% per year over 5 years. Some lenders offer a combination of a lower cash-back amount and a reduced rate, so a borrower can select the best one suited to them. We recommend them only if absolutely necessary, as the benefit of the best discounted rate far outweigh the cash-back amount.
Your Homefund mortgage professional will present the various cash-back options available to you, and answer any questions you may have.