- How Much Money Is Needed To Invest In Rental Property?
- Should A Real Estate Investor Get An Agent’s License?
- 5 Big Factors That Affect The Costs Of Renovating Your Home
- SIBOR Hike – What You Can Do With Your Current Loan
- 6 Basic Don’ts Of Real Estate Negotiation Tactics
- Will New Condo Relaunches Trigger The Great Property Sale We Have All Been Waiting For?
- 10 Proximity Amenities That Add Value To Real Estate
- How To Get Personal Loans More Easily With Good Credit
Mortgage Rebate
A mortgage rebate is a cash payment made to a borrower for accepting a home loan with certain terms.
The two main reasons for lenders or brokers to offer mortgage rebates is:
- To beat a competitor’s rate
- To offset the terms on a loan that don’t seem favorable to a borrower
If two housing loans have the same interest rates and points, the one with the cash rebate would seem more attractive to the borrower.
At the same time, if a loan is at 5% while another is at 4.75%, a borrower might be enticed to take on the first loan if it comes with a $2,500 cash back.
Mortgage rebates can come in various forms. The most common of which are:
- Negative points
- Closing costs credit
- Cash payment
- etc
Because of the potential of mortgage rebates being abused, some states fully or partially outlaw such business practices.
This is because an average homeowner might be seduced by the easy cash without realizing that he would be paying more than the rebate amount in the long term.
However, various states have no problems allowing it either.
 |
 |
 |
 |
Latest Singapore home loan rates |
Hidden items that bring up mortgage costs |
Hiring a competent agent |
How to burn more calories in the office |
Search From Hundreds Of Publications
0 comments