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

Discount Arbitrage

Discount Arbitrage

A riskless arbitrage in which a discount option is purchased and an opposite position is taken in the underlying security. The arbitrageur may either buy a call at a discount and simultaneously sell the underlying security (basic call arbitrage) or maybuy a put at a discount and simultaneously buy the underlying security (basic put arbitrage). See also Discount.


Discount period

Discount period

The period during which a customer can deduct the discount from the net amount of the bill when making payment.


Original Issue Discount securities (OIDS)

Original Issue Discount securities (OIDS)

Bonds on which the coupon rate is set considerably below the yield to maturity at the time of issuance so that the bonds are issued at a discount from a par value.


Stepped discount mortgage

Stepped discount mortgage

Where the discount is, for example, fixed at one level for one year and then a slightly lesser level for two further years. Remember it is the percentage discount that is stepped and not the monetary amount, so your repayment can still vary.


Discount broker

Discount broker

A brokerage house featuring relatively low commission rates in comparison to a full-service broker.


Further Suggestions

Discount securities
Discount factor
Straight Discount
Forward discount
Discount period
Discounted payback period rule
Discounted payback
Discounted dividend model (DDM)
Original issue discount debt (OID debt)
Average discount rate
Bank discount basis
Discount payment
Underwriters discount
Pure discount bond
Discount rate
discounted cashflow
bond discount
Discount Interest
discounted rate mortgage
Discount bond
Accrued market discount
Discount yield
Discounted basis
Discount window
Accretion (of a discount)


 
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