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

Written statement of the lender that the buyer of real estate has paid-off the entire mortgage. ...

Concrete with steel rods inserted into it to provide additional working load support. The premise is that both materials will act together in resisting loan stress. ...

Self-employed contractor who may perform work on a structure such as residential or commercial property. ...

Are you ready to unlock the secret to reaching your ideal audience? The key is market delineation! But what what does delineate mean? Join us on this real estate journey and uncover the ...

A rule that the price of a house should not exceed about 2 to 2.5 times your family's gross annual earnings. Example : If annual gross income is $70,000, the highest price one could afford ...

Residential or commercial building of two or more floors that can only be accessed through stairs. It is more common in urban areas. ...

Condition that affects the probability of losses or perils occurring. An example is possible earthquake or flood damage to a house. ...

To obtain the right through authorization to act as a legal representative and agent for another. ...

A portion of a real estate company's assets financed with debt instead of equity. It involves interest an principal obligations. Financial leverage is beneficial to real estate investors ...

Popular Real Estate Questions