Buy-Up refers to the payment of points, or a rebate, to the borrower for taking a loan with an above-market interest rate. Commonly referred to as 'negative points,' this payment helps offset fees and other settlement costs associated with the loan.
A Credit Tenant is a commercial tenant that is large, financially stable, and well-rated by credit agencies, which can influence favorable terms for mortgage financing based on the tenant's creditworthiness.
The Mortgage-Equity Technique, also known as the Ellwood Technique, is used in real estate financial analysis to value income-producing properties. It incorporates both mortgage financing terms and investor equity expectations.
