How will negative mortgage points affect you? Is it possible to actually get a loan in which the lender is paying you the points instead of the other way around? Absolutely, negative point loans are exactly that. With these loans, which are sometimes called premium loans, you will actually be getting a rebate. If it is a negative point loan that you are looking for you should start your shopping for one on the Internet. Internet lenders are better equipped to give you the better rates and terms for these loans due to the set up of their companies. When you are shopping for a loan the old fashioned way you are going to find that every lender will have various combinations that you can choose from as far as their rates and points. This offers more flexibility, everyone has a different situation and each situation needs something a little different in their home mortgage plan and these combinations are what will help you to find just what works for you and your finances. You might have wondered if these negative points can be put towards your down payment. Let me put your mind at rest right now and tell you that no they cannot. These negative points may be used to defray your settlement costs, that is all. You need to watch out for the amount of negative points because you do not want to be getting too high or you could end up with negative points that are more than your settlement costs. You want to avoid this. Negative point loans are basically only a benefit to those who are not planning on holding onto their mortgage for a long time. If you are looking at a long time horizon then do not bother with these types of loans. They are good for the short time borrowers because the interest they pay will be so low. If you do plan on holding onto this mortgage for a significant length of time you want to go with positive points, as they are what will save you the most money in the long run. And saving on your mortgage is what it is all about. And many companies view negative points as a great way to take advantage of borrowers like you, they make for more sales commissions for these brokers so watch out. It is the inaccessibility of the information needed to make wise decisions that make negative point loan borrowers such sitting ducks. The lender is always ahead of you because they know the real score, they know what is really going on and you don't and you can't find it out even if you tried. There are simply not the laws that there should be concerning the disclosure about negative points. That is why you need to find out as much as you can and talk to your mortgage broker before you sign anything. If you feel they are holding something back from you move on to the next lender.