glossary

GLOSSARY

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Yield curve

Zone of possible agreement describes the potential common ground between two negotiating parties. Each party in a negotiation should have points on which they will and will not compromise. The zone of possible agreement encompasses the points on which both sides are willing to compromise.

Yield spread premium

Yield spread premium is the difference between the interest rate a borrower pays on a mortgage loan, and the lender's par rate for which that borrower qualifies. This difference is the broker's compensation for originating the mortgage. Yield spread premiums are disclosed on the HUD-1 Form.

Yupcap

Yupcap is a slang term for a young, educated, working professional who can't afford to buy a home. Yupcaps have reliable, competitive income, but are kept out of homeownership due to the rising cost of real estate in the U.S.