Discount Loan


Definition of "Discount loan"

A loan in which the entire charge is subtracted up front from the face value of a loan. The proceeds received are the face value of the loan less this deduction, which increases the effective interest rate. See also annual percentage rate.



Search Real Estate Glossary

 

Related Real Estate Glossary terms

Median

Statistical term indicating the central value of a frequency distribution, such that smaller and gre ...

Valuation Mortality Table

Mortality table used to calculate the legal reserve and life insurance policy cash surrender values. ...

Urban Economics

Branch of economics that applies the tools of economic reasoning to the analysis and solution of urb ...

Forgery Insurance

Insurance with two types of policies available: depositors forgery insurance; forgery and alteration ...

Cash Value Life Insurance

Policy that generates a savings element. Cash values are critical to a permanent life insurance poli ...

Capital Improvement

Costs incurred in connection with real property that increase its cost basis or worth, such as a new ...

Related Real Estate FAQ

Do I Need Flood Insurance?

Over 90% of all presidential-declared disasters in the United States are flood related. Leveling for ...

What Is A Mortgage Broker?

A mortgage broker is an intermediary who ensures a loan between a borrower and lender. The broker ta ...

What Does Fannie Mae Mean?

Fannie Mae is a name used by the Federal National Mortgage Association, which is a government-charte ...

What Is Zoning?

Zoning is the laws that establish how a property can be used and what codes must be followed when er ...

Do I Need Life Insurance?

Whether you are a .boomer. an .X-er. or an .empty Nester. it is never to or too late . to think abou ...

What Is A REALTOR®?

A REALTOR® is an agent or agency that belongs to the local or state board of REALTORS® and is affi ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

Home Prices - The Extra Costs 10 Tips for Homebuyers Short Sale Homes When to Dispute Your Home Appraisal How to become a real estate agent

FAQ

What is joint tenancy? What is a Multiple Listing Service (MLS)? How Much Will My Principal Be? What is an index? What does computer insurance cover that my warranty doesn't?