With this Cash Back mortgage program, the mortgage lender will advance up to 5% of the purchase price to be used to help cover closing costs or pay off other debt.
With Cash Back mortgage programs, the mortgage lender will advance up to 5% of the purchase price to be used to help cover closing costs or pay off other debts. For this benefit, the mortgage rate offered will be the lender “posted” rate which compensates the lender for the cash back received. Providing you complete the full mortgage term chosen (5, 7 or 10yrs), no repayment of the cash back is required. The premium paid to the mortgage insurer is slightly higher than if you did not choose a Cash Back mortgage.
To be eligible for the Cash Back program, you need to be buying a new and completed home or an existing property. You must be able to meet the lending and credit criteria established by the program and the property must be your principal residence. At a minimum, you must have liquid assets in the amount of 5% of the purchase price to cover closing costs. These funds are to be in place at the time of application.
The maximum loan to value ratio is 95% plus mortgage default insurance premium. Once approved, you may make weekly, bi-weekly, semi-monthly and monthly payments.
To see if you are eligible for the Cash Back mortgage program, contact Laurie Baird or Tracy Head to discuss the program and its particulars. Details will be explained at your free consultation meeting.