Rebate 2


Definition of "Rebate"

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.

Have a question or comment? We're here to help.

 
 
 
*** Your email address will remain confidential.
 
 

Search Real Estate Terms

 

Popular Real Estate Terms

Points

An upfront cash payment required by the lender as part of the charge for the loan, expressed as a percent of the loan amount; e.g., '3 points' means ...

Permanent Buydown

Same as term Points: An upfront cash payment required by the lender as part of the charge for the loan, expressed as a percent of the loan amount; e. ...

Rebate

Amount paid back or credit given because of an overcollection or the return of property sold. Also called refund. Unearned interest refunded to a ...

Per Diem Interest

Interest from the day of closing to the first day of the following month. To simplify the task of loan administration, the accounting for all home lo ...

Overage

The difference between the price posted to its loan officers by a lender or mortgage broker and the price charged the borrower. Loan officers who wor ...

Antirebate Law

Statute that makes it illegal in most states for an agent to rebate (return) any portion of his commission as an inducement for an applicant to purcha ...

Popular Real Estate FAQ

What Is A Default?

A default is when a person fails to make payments on a loan. ...

What Do I Need To Know About RV Insurance?

Your motor home can be both your transportation and your home away from home. So like your auto and your home, you need to safeguard it with the prope ...

What Is A Subdivision?

A subdivision is a piece of land divided into several plots in which homes are built. ...

What Is A Proprietary Lease?

A proprietary lease is lease used for co-ops that give the shareowners the right to live in a particular unit. ...

What Do I Need To Know About Term Life Insurance?

Provides financial protection for a limited, specified period of time, at a lower cost than permanent life insurance. ...

What Is A Subprime Mortgage?

A subprime mortgage is a mortgage granted to a borrower who is considered subprime-that is, a person with a less-than-perfect credit report. Subprime ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

Understanding the Housing Market on Your Own: How to Predict Local Real Estate Market Trends With no Help from an Agent 5 U.S. Cities with the Best Public Transportation What is the Best Time of Year to Buy a Home? How to become a real estate agent 4 Effective Ways to Market Real Estate to Millennials

FAQ

What is a APR Loan? How Much Income Do I Need ? What is a title search? What do I need to know about Whole Life Insurance? What is an agent?