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

Limited partnership in which limited partners rely on the general partner to choose specific properties after the funds are available. ...

Rate of return that is necessary to maintain market value of a real estate project. The cost of capital is used for project evaluation purposes. Under the net present value method, the cost ...

See common law. ...

Many homebuyers or real estate investors only think of mortgages when it comes to financial aid in real estate purchasing. Lately, with the increasing desire of homebuyers to not be ...

Rule within the Internal Revenue Code applicable to capital gains from selling real estate that has been depreciated for tax purposes. Most buildings must be depreciated using the ...

(1) Reconciling the records to show agreement. (2) Agreement of the records to physical amounts. ...

The broad use of credit to purchase a security. ...

A flexible price that may be adjusted. A resolved situation between two or people or parties through discussions in which common interests are modified. For example, real estate ...

Net return rate earned on an equity investment in real estate after deducing any interest costs and taxes. ...

Popular Real Estate Questions