our mortgage guy told us we could get cash back after closing have u heard of this, can it be done ?

Question

we are buying

Answer 1

Yes, depending on the mortgage, you can get up to 3% of your total mortgage loan as "cash back". However, the deal is (as an example) 5.0 % interest with no cash back or cash back with an interest rate of 7.0 %. It's basically a loan tacked onto your mortgage. Which is not necessarily a bad thing, because mortgages are usually at a better interest rate than loans generally.

Answer 2

take out a mortgage higher than the cost of the house
I did that-
got a great deal on the house, took out a mortage enough to cover the repairs, fixed up the house and flipped it for a $45,000 profit after all paid off

Answer 3

Works just the way it does for cars. They are not giving away money. They tack it onto the fees or the interest points. You end up paying for it - with interest.
If there are extraordinary circumstances such as a washer/dryer need or so forth, the interest on the "cash back" from your overpay or their add on will be much less than a credit card.

Answer 4

Yes,it can be done.It all depends on the ratio between the selling price and the appraised value of the property and your credit rating.

Answer 5

That depends upon state law. Where it is permitted, it MUST be openly disclosed to all interested parties. From first hand experience I can tell you that it is NOT legal in TX.

Answer 6

Yes, that happens a lot.

Make sure you ask if it's cash. Sometimes, they reduce closing costs instead.

Answer 7

Don't get greedy and ask a lot of questions. It's quite possible he is sticking you with a negative amoritization loan.