Same as term 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
The month in which a zero loan balance is reached. The payoff month may or may not be the loan term. ...
Same as term Interest Rate: The rate charged the borrower each period for the loan of money, by custom quoted on an annual basis. A mortgage interest rate is a rate on a loan secured by a ...
A particular combination of loan, borrower, property, and transaction characteristics that lenders use in setting prices and underwriting requirements. ...
The frequency of rate adjustments on an ARM after the initial rate period is over. The rate adjustment period is sometimes but not always the same as the initial rate period. As an example, ...
A borrower who doesn't pay. ...
A borrower with the best credit rating, deserving of the lowest prices that lenders offer. ...
A lender that sells the loans it originates, as opposed to a portfolio lender that holds them. ...
On an ARM, the assumption that the interest rate rises to the maximum extent permitted by the loan contract. ...
The interest rate that is fixed for some specified number of months or years at the beginning of the life of an ARM. ...
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