Cash Back Mortgage Calculator

Banks offer cash back mortgages as an incentive. Most of the time these mortgages are extremely over priced, but with the right set of circumstances they can work for you.

Recently a financial institution has been offering cash back mortgage which were definitely worth looking at. I have created a calculator that will give you the equivalent rate without the cash back. The assumptions made are the same monthly payment, the same balance at the end of the term and that the cash back is applied directly against the mortgage when received.
Enter your information and you will get the equivalent rate taking the cash back into account. For example a five year term with a 25 year amortization period with a rate of 5.85% with 5% cash back is the equivalent to 4.57% If you can’t get a rate of 4.57% without the cash back, you will be better off taking the cash back.

The other consideration is that if you have to break your mortgage for any reason in your mortgage term your cash back will be clawed back and factored into the penalty.

It is best to get expert help that can break down the numbers for you when you are trying to decide if cash back is to your advantage.

CLICK HERE TO DOWNLOAD THE CASH BACK MORTGAGE CALCULATOR