When we think of a mortgage, there are several things that come to mind. What is the interest rate? How long is the term? How much will my payments be? But, did you know that lenders are adding new perks to mortgages all the time? Here are some great features that lenders are offering:
1. Cash back Mortgages
Most lenders offer some variation of this program. Basically, this program means that a lender will give you cash back at the closing to be used for things like closing costs, furniture, renovation costs, and even the down payment. The amount that a lender will offer with this program varies from 3% to 8%. However, the program isn't all roses as usually lenders will charge a higher interest rate on the mortgage.
2. Warranty Insurance
There are a few lenders that are offering free home warranty on things on your house if something goes wrong in your first year of home ownership.
3. Green Mortgages
With a move towards more eco-friendly products, mortgages are no different. Usually, the approach is that once the house is completed with eco-friendly renovations, there is cash back given to the borrower.
4. Portability
A lot of people worry about what happens if they decide to move and change houses. They may even avoid moving in an effort to not have to pay the enormous mortgage penalty. Portability allows you to move your mortgage over to a new property with the same rate and terms.
Just like any other type of product on the market, there are plenty of mortgage products to choose from and compare. Make sure to contact a mortgage professional to make sure you get the best "perks" possible on your mortgage.
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