Negative Points
Definition of "Negative Points"
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 premium.
Popular Mortgage Terms
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Limit on the size of payment change on an adjustable rate mortgage. ...
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The party who services a loan, who may or may not be the lender who originated it. ...
The period between payment changes on an ARM, which may or may not be the same as the interest rate adjustment period. ...
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