Get easy to understand definitions for common mortgage terms from the Mortgage Insider. In our glossary, we define the word, tell you about in industry usage, and usually give an example so you can fully and easily understand not just the meaning but the function of the word.
Yield Spread Premium
Yield Spread Premium - YSP - Defined
Yield spread premium is easy to understand if you think of it as “the income made by unnecessarily raising your interest rate”.
A loan officer earns is income by arbitrarily raise the rate of your loan over the “par rate” and the income derived is called the yield spread premium. [...]
