Points paid by a lender for a loan with a rate above the rate on a zero point loan. For example, a wholesaler quotes the following prices to a mortgage broker. 8%/0 points, 7. 5%/3 points, 8. 75%/-3 points. On mortgage web sites,' Negative points' are usually referred to as "rebates" because they 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". Read Can Mortgage Points Be Negative? And Ignore Lender Payments to My Broker? On policy issues connected to negative points, see HUD and Yield Spread Premiums, and A Better Approach to YSPs?
Barry Goldsmith
| APA | Barry Goldsmith. (2010). negative points. Retrieved September 20, 2026, from http://smartdefine.org/negative_points/definitions/1158859 |
| Chicago | Barry Goldsmith. 2010. "negative points" http://smartdefine.org/negative_points/definitions/1158859 (accessed September 20, 2026). |
| Harvard | Barry Goldsmith 2010, negative points, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/negative_points/definitions/1158859>. |
| MLA | Barry Goldsmith. "negative points" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/negative_points/definitions/1158859> |