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negative points

Paid by a lender for a rate above that of a zero-point load, usually referred to as "rebates" or, in the case of a mortgage broker, "yield spread premium." For example, the following: 8 percent/0 points, 7 percent/3 points, 9 percent/-3 points.

Related information about negative points:
  1. Can Mortgage Points Be Negative? - Mortgage Professor
    Dec 11, 2000 ... For this reason, you do not want to select a rate/point combination that has negative points in excess of your settlement costs. For example, if ...
  2. Negative Points Definition | Investopedia
    A cash rebate paid by lenders to a mortgage broker or the borrower for a mortgage with an interest rate above the lender's par interest rate. When the rebate is ...
  3. Negative Points - Use them to your advantege
    Instead of paying points for a lower interest rate, with negative points you ... As shown in the simple example on the main points page, negative points can really ...
  4. Positive and Negative Mortgage Points Explained
    In addition, positive or negative points will need to be paid to the lending bank. Evaluate which type of points would be advantageous for your financial situation.
  5. An After-Tax Analysis of Negative Mortgage Points - Monfort College ...
    than-par interest rate and receive negative points; this receipt of up-front cash is commonly ... authoritative guidance for the tax treatment of negative points.
  6. Awarding Negative Points for Incorrect Answers to Test Questions
    This video shows instructors how to assign negative points to a test question in order to discourage guessing. Students can be penalized for selecting the wrong ...
  7. Compare Mortgage Rates Vs. Points |
    With 'negative points,' the borrower pays a higher rate, but less in fees. ... Borrowers who take "negative" points, in the form of a credit toward their closing costs, ...
  8. Negative Points Definition & Example | InvestingAnswers
    We explain the definition of Negative Points, provide a clear example of how it works and explain why it's an important concept in business, finance & investing.