a financing option that allows borrowers, if they choose, to finance some or all of their closing costs (including mortgage broker fees) over the life of the loan in exchange for the borrower's paying a higher interest rate
a form of mortgage broker compensation that is paid by the Investor in exchange for offering a particular loan program and interest rate to a borrower
a payment a mortgage broker receives from a lender based on the difference between the actual interest rate on the loan and the rate the lender would have accepted on the loan given the risks and costs involved
a payment by a lender to the borrower's mortgage broker that is tied to an increase in the borrower's interest rate
a term for a fee that is paid as a kick-back to mortgage brokers for increasing the borrowers interest rate over the best rate the consumer could have received at time of the closing of the home loan
The compensation loan brokers normally receive from the lender. This compensation, if any, is normally expressed as basis points and is based on the interest rate. For more information, see the "Interest Rates" article in the "Mortgage Industry" section.
Yield Spread Premium, or YSP, is the cash rebate paid to a mortgage broker based on selling an interest rate above the wholesale Par rate that the borrower qualifies for.