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.