Did You Know You Can Get Cash Back on Your Mortgage?

Most people know about cash back credit cards, but did you know you can get cash back on your mortgage too?

It’s an option that many homebuyers don’t realize exists. Some mortgage programs offer cash back when your mortgage closes—between 1%, 2%, 3%,.

For example, if you had a $500,000 mortgage and qualified for 2% cash back, that could mean $10,000 back after closing. When you’ve just purchased a home, that extra money can definitely come in handy.

The cash back could be used for things like closing costs, new furniture, moving expenses, paying down credit card debt, or simply giving you a little extra breathing room after you move in.

Of course, it’s important to remember that cash back mortgages aren’t “free money.” The mortgage may come with a different interest rate, terms, or conditions, and there could be repayment requirements if you break the mortgage early. That’s why we always want to look at the whole mortgage, not just the cash back amount.

Not every lender or mortgage offers this option, and it won’t make sense for everyone. But if cash flow is important to you when buying a home, it’s definitely worth asking about. I find it is most useful for people that need help with paying down debt.