Negative Points

Definition of "Negative Points"

Renee Faletti
  Keller Williams Premier Realty

Points paid by a lender for a loan with a rate above the rate on a zero point
loan. For example, a lender might quote the following prices: 8%/0 points, 7.5%/3 points, 8.75%/-2.5
points. Negative points, often referred to as 'rebates,' are used to reduce a borrower's settlement
costs. When negative points are retained by a mortgage broker, they are called a 'yield spread

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