Discount Points


 

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Discount Points

The fee associated with the note rate for your loan, the more discount points you pay the lower the rate you can buy, the fewer you pay, the higher your rate. If the rate is high enough, the loan is priced above par and these premium points are available to pay closing costs creating a no or low fee loan.



Discount Points

Similar Matches

Forward discount

Forward discount

Opposite of forward premium.


Accretion (of a discount)

Accretion (of a discount)

In portfolio accounting, a straight-line accumulation of capital gains on a discount bond in anticipation of receipt of par at maturity.


Risk adjusted discount rate

Risk adjusted discount rate

The rate established by adding a expected risk premium to the risk-free rate in order to determine the present value of a risky investment.


Discount rate

Discount rate

1. The rate, per year, at which future values are diminished to make them comparable to values in the present. Can be either subjective (reflecting personal time preference) or objective (a market interest rate). 2. The interest rate that the Fed charges commercial banks for very short-term loans of reserves. One of the tools of monetary policy.


Discounting

Discounting

Calculating the present value of a future amount. Discounting is opposite to compounding.


Further Suggestions

Discount securities
Discount
Discount factor
Discounted in or by market
discounted rate mortgage
Bank discount basis
Original issue discount debt (OID debt)
Underwriters discount
Accrued discount
Straight Discount
Discount broker
Discount window
Deep discount bond
Accrued market discount
discounted cashflow
Volume discount
Rediscount
Discount bond
Discounted payback
discount yield
Discounted dividend model (DDM)
Pure discount bond
bond discount
deep discount
Dividend Discount Model (DDM)


 
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