Before deciding to refinance your mortgage with a cashback offer, there are several factors you should consider:
- Interest rate: The interest rate of the new loan should be lower than your current mortgage rate. The cashback offer should not make up for a higher interest rate.
- Fees: Refinancing involves fees, such as application fees, appraisal fees, and closing costs. Make sure the cashback offer is enough to cover these fees and still leave you with a net benefit.
- Loan term: Consider the length of the new loan term. If you have already paid off a significant portion of your current mortgage, it may not be in your best interest to extend the loan term.
- Repayment options: Make sure the new loan has repayment options that suit your financial goals and circumstances. For example, if you plan to pay off your loan faster, you may want a loan with no penalty for early repayment.
- Your credit score: Your credit score can impact your ability to qualify for a refinance cashback offer and the interest rate you receive. If your credit score has improved since you obtained your current mortgage, you may be able to secure a better offer.
- Your financial goals: Consider your financial goals and how refinancing with a cashback offer fits into them. For example, if you want to pay off debt or make home improvements, a cashback offer could be helpful.
- Overall cost: Calculate the overall cost of the new loan, including the interest rate, fees, and cashback offer. Make sure it aligns with your financial goals and is a financially responsible decision.