Buy up

A buy up is also known as 'negative points'. Points paid by a lender to a borrower or mortgage broker for a loan with an above-market interest rate.

When the points are paid to the borrower, it is known as a rebate, and must be used to defray loan settlement costs.

When the points are paid to the mortgage broker, it is known as yield spread premium, and is part of the broker’s compensation.


 

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