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Negative Points |
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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.” See Points/Points and Rebates as Borrower Options. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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