Definition of "Mortgage discount"

Bobby  Atkins real estate agent

Written by

Bobby Atkinselite badge icon

Venture Realty

One-time charge assessed by a bank or other financial institution at the closing of buying real property. The fee increases the effective cost to the borrower. One discount point translates to 1% of the initial mortgage amount. While the buyer typically pays these points, in some cases the seller does because of governmental law (e.g., mortgages to veterans).

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

The meaning of an undisclosed principal in everyday use often refers to a confidential client who intends to keep their identity hidden. Typically, this individual remains in the background ...

Passing of title to property that is in fact not valid. ...

What a piece of property could be sold for on the market. ...

Map showing the kinds of soil in a designated locality. ...

A hard white finishing cement with a fast setting time and a high polish capability. Consisting of anhydrous gypsum plaster and an accelerant, alum, Keene's cement is normally applied over ...

Privilege of a real estate investor or lender to participate in the profitability generated from property. This is in addition to any principal, interest, or dividends. ...

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

Same as term resale proceeds: Net amount received when property is sold. It equals the selling price less outstanding mortgage balance less all costs incurred in connection with the sale. ...

Regarding the definition of the term adjoining, we see a term used most often to describe a particular position that objects, items, or properties have regarding each other. In the case of ...

Popular Real Estate Questions