Cashback is free money from the bank!! Just kidding:) Wouldn’t that be great though?
Some lenders offer the option of taking a one-time cash payment at the beginning of your new mortgage. The amount offered can vary and is usually a certain percentage of your loan amount. This is what is referred to as “cashback”. Cashback is often marketed as free cash in your pocket, but it comes with a higher interest rate on your mortgage so that you pay it back (and then some).
