What are the benefits of a cashback mortgage?

There are two main benefits of a cashback mortgage: streamlined financing and lower interest rates. The first benefit is available to all cashback borrowers. Rather than taking two loans, all borrowers who take advantage of cashback options take only one loan to purchase the home and borrow cash against the home equity. The second benefit, a lower interest rate, is realized only in some situations. Only if comparable home equity loan rates are higher than mortgage rates will a borrower realize this benefit. As a result, it is worth comparing home equity loan rates to mortgage rates at the time of purchase to determine which option will be cheaper.