We are considering switching to a lender that is willing to offer 2% cash back on the loan amount - for a 5 yr closed FRM.
I've read the article by MDJ Cash Back Mortgages are a bad idea, and from what I gather, its the interest rate differential that makes it disadvantages.
I'm exploring an option where the interest rate differential is a measly 0.25%. Sounds good to me because even if I break, I don't pay interest on that cash back amount.
Aside from this and the fact you have to return the money if you break the mortgage contract, are there any other downsides?
I've read the article by MDJ Cash Back Mortgages are a bad idea, and from what I gather, its the interest rate differential that makes it disadvantages.
I'm exploring an option where the interest rate differential is a measly 0.25%. Sounds good to me because even if I break, I don't pay interest on that cash back amount.
Aside from this and the fact you have to return the money if you break the mortgage contract, are there any other downsides?