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Mortgage Gimmicks Explained

As mortgage rates have surged to around 7% since 2021, lenders have employed creative strategies to attract borrowers. These include temporary buydowns, like Rocket Mortgage’s Inflation Buster program, which lowers the interest rate by one percentage point for the first year before reverting to the original rate. Cashback incentives, offering a percentage of the loan amount back at closing, and flexible loan programs, such as adjustable-rate mortgages (ARMs) or hybrid loans, are also being used. While these options can be appealing, it’s essential to understand their terms and consult a mortgage professional to ensure they align with your long-term financial goals.

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