Definition of "Mortgage discount"
Bobby Atkins, Real Estate Agent
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).
Have a question or comment? We're here to help.