District of Columbia Real Estate







Home > Real Estate Resources > Real Estate Glossary > Definition of DISCOUNT POINTS

DISCOUNT POINTS



The amount of money the borrower or seller must pay the lender to get a mortgage at a stated interest rate. This amount is equal to the difference between the principal balance on the note and the lesser amount which a purchaser of the note would pay the original lender for it under market conditions. A point equals one percent of the loan.








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