Yes, there are some risks associated with taking advantage of a refinance cashback offer. One of the biggest risks is that borrowers may focus too much on the upfront cashback offer and not pay enough attention to the terms of the new loan, such as the interest rate, fees, and overall cost of borrowing. If the new loan has higher fees or a higher interest rate than the existing loan, the upfront cashback offer may not actually save the borrower money in the long run.
Additionally, if the borrower does not make their payments on time, they may face penalties and fees that could wipe out any savings from the cashback offer. It is important to carefully read and understand the terms of the new loan before deciding to refinance with a cashback offer, and to ensure that the new loan is truly in the borrower’s best interest.
