Definition of "Discount rate"

Mary Braatz real estate agent

Written by

Mary Braatzelite badge icon

RE/MAX Enterprises

(1) The interest rate used to convert future receipts or payments in connection with real estate property to their present value. The cost of capital is used as the discount rate under the net present value method. (2) Also called the rediscount rate. The interest rate charged by the Federal Reserve Bank to its member banks for loans. A change in the discount rate will have a significant impact on the real estate market. See also capitalization rate.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

A triangular shaped end of a building where a double sloped roof meets at the top of the triangle. A gable begins at the eaves of a roof and terminates at the roof ridge. ...

Early American style 1 story house with a steep gable roof covered with shingles. The bedrooms are on the first floor, but the attic is often finished and made into additional bedrooms. ...

Local geographic area with similar characteristics. It may be referred to by name (e.g., Brooklyn Heights, Palisades) and have designated boundaries. There are major streets such as for a ...

Removal of a tenant from a portion of a rented or leased premise. ...

Person who leases rented premises from the initial lessee. The sublease is for a time not exceeding the original lease period. ...

(1) Financial ability and soundness of a business or individual to afford the purchase of property. (2) Worth of the dollar in real terms considering inflation. ...

House design to be easily expandable. ...

The float has several meanings in the financial world and the real estate terminology. Typically, the float refers to the number of funds, represented by checks, that an institution or an ...

Defendants legal objection to the prima facie sufficiency of a judicial pleading. It is a motion to dismiss an action on the ground there is no apparent equity violation, the court has no ...

Popular Real Estate Questions