Yield Spread Premium (YSP)

Business / Loan / Yield Spread Premium (YSP): This is a payment made by a lender to a mortgage broker in connection with a borrower's mortgage transaction. It is shown on the Settlement Statement (HUD-1), but often in a way that is difficult to understand. For example, a $1,000 yield spread premium may be shown as 'YSP POC 1000.' Borrowers are often unaware that the YSP payment is being made. The payment of a YSP by a lender affects the interest rate charged to the borrower.

Other Words for Premium

Premium Noun Synonyms: bonus, extra, dividend, prize, award, reward, perquisite
Premium Verb Synonyms: incentive, inducement, stimulus, incitement, lure, bait, spur, goad, reward, come-on, freebie

Other Words for Spread

Spread Noun Synonyms: grow, develop, increase, broaden, expand, extend, widen, enlarge, mushroom, proliferate, sprawl, branch out, metastasize

Other Words for Yield

Yield Conjunction Synonyms: return, production, output, revenue, takings, gate, earnings, income, proceeds, profit, gain
Yield Adverb Synonyms: surrender, give up (the fight or struggle), give in, knuckle under, submit, cede, cry quits, throw in the towel or the sponge, capitulate, succumb, raise the white flag

Selling The Spread

Business / Finance / Selling The Spread: A spread whose option to be sold is trading at a higher premium than the option to be bought. MORE

Share Premium

Business / Accounting / Share Premium: The extra paid above the face value of a share. Example: if a company issues its shares at $10 each, and later on you buy 1 share on the open market at $12, you will be paying a share premium of $2 MORE

Single-Premium Deferred Annuity (SPDA)

Business / Finance / Single-Premium Deferred Annuity (SPDA): A bond that makes only one payment of principal and interest. MORE