Definition of "Mortgage discount"

Bobby  Atkins real estate agent

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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).

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