A unit of measurement used to describe various loan charges; one point equals 1 percent of the amount of the loan. For example, $2,000 equals one discount point on a $200,000 loan. Typically discount points are fees that a lender charges to provide a lower interest rate.
Related information about discount point:
- Discount Points Definition | Investopedia
Each discount point generally costs 1% of the total loan amount and depending on the borrower, each point lowers your interest rate by one-eighth to one ...
- Point (mortgage) - Wikipedia, the free encyclopedia
Points, sometimes also called a "discount point", are a form of pre-paid interest. One point equals one percent of the loan amount. By charging a borrower points, ...
- Discount Points - Should You Buy Points to Lower Your Interest Rate
For instance, for a $100,000 loan one discount point equals $1,000. ... Each discount point paid on a 30-year loan typically lowers the interest rate by 0.125 ...
- What is discount point? definition and meaning
Definition of discount point: In the US, one-time fee paid by a home buyer ( usually at the time a home mortgage loan is advanced) to compensate the lender for ...
- Discount Point FAQ's - Big Valley Mortgage
For instance, for a $100,000 loan one discount point equals $1,000. Each discount point paid on a 30-year loan typically lowers the interest rate by 0.25 percent.
- Paying mortgage discount points: a primer (Page 1 of 2)
Jan 26, 2006 ... One discount point is an upfront payment of 1 percent of the loan amount, paid at closing. You receive a reduction in the interest rate in ...
- Mortgage Points, Origination Points, Discount Points
A general rule of thumb is that one full Discount Point will lower your fixed ... There is no advantage to paying an Origination Point instead of a Discount Point.
- Discount Point - YouTube
Aug 2, 2009 ... http://www.refiadvisor.com Discount Point Definition and how to decide if paying mortgage points is worthwhile or necessary on your next home ...