SmartHomeOwners

I am looking to turn my secured line of credit into a 1 year fixed mortgage. What is the standard when it comes to money back for appraisals or legal fees?
I applied for a 2.19 and got it but it comes in as 2.55, but I get cash back so it supposively is still the 2.19? They pay for appraisal, but I thought the money back was to put towards the legal fees, but you still got your rate you aplied for. What is the standard?

Cashback can be provided for two reasons primarily. One is to give a borrower a simple cashback such as 3% of the mortgage amount as in cashback mortgages. Cashback mortgages usually carry higher interest rates. The other type of cashback is to compensate the interest rate. In your case, your broker promised you a rate of one year at 2.19%, but on paper, you have 2.55%, then, your broker should pay you a cashback of 0.36% of the mortgage amount upfront on closing.