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

One who acts as a witness and fives written testimony under oath. ...

Justifiable and fair amount for a real estate transaction based on the conditions and limitations involved in the exchange. ...

Grouping of several columns arranged in intervals supporting an architectural overhang, usually a roof. ...

A shallow yet funny definition of a tax specialist is someone who loved math since 1st grade. He or she has an elephant’s memory and is always up to date with the regulations and ...

Used to compute the tax on a specified taxable income. The marginal tax rate usually increases as the taxable income rises. ...

(1) The exposed trim and molding surrounding a door or window. (2) Woodwork which encases a pipe or structural member. (3) Method of creating a form for the pouring of concrete. ...

Square footage of space a parcel of land has. ...

Position taken by a real estate consultant representing the best interests of the client. ...

Degree of construction of residential property measured in number of units or dollar value. ...

Popular Real Estate Questions