Here’s a good deal on a new, low-interest home loan you can qualify for.
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The average interest rate for these loans is 0.6%, down from 2.5% a year ago, according to the U.S. Consumer Financial Protection Bureau.
The average annual payment is $2,500.
And they offer a guaranteed cash back of at least 5% for up to 12 months.
The terms of the loans vary, but usually require the borrower to make monthly payments for 10 years.
The Federal Reserve Bank of Minneapolis says the loans also have no minimum balance requirement.
If you’re paying the mortgage, you have the option to set up a separate installment plan that allows you to make payments at a discounted rate.
You can also opt to have the loan servicer make the payments for you, which can save you money.
Here are some tips to earn a cash back, no-interest loan: If you don’t have a home mortgage, consider paying down your home’s principal and reducing your payments in order to earn the cash back.
For a home with a $1 million down payment, that would mean making the payments of $150,000 in three years.
You could earn the $100 of cash back with a 10-year mortgage with a down payment of $300,000, or you could earn $2.5 million in 12 years by paying $1.25 million in principal and $200,000 over 10 years in principal payments.
Pay down your mortgage, then pay off the remaining balance in installments to earn 10% cash back from the end of the loan term.
If your mortgage is 30 years or older, you may need to make more payments over the life of the agreement.
Some banks also offer the option of deferring the payment of principal and interest to a certain date, and that may also earn you the cash-back.
For example, a $500,000 loan with a 5% interest rate will earn you $2 million over the first five years.
However, you can earn cashback with the 5% rate by paying off the balance in 30 years.