discount points

Discount Point

One percentage point of the principal of a mortgage loan that some lenders require borrowers to pay immediately as a condition of making the loan. That is, if the lender makes a mortgage loan, it may require the borrower to pay a certain amount of discount points up front. The amount paid is deducted from the interest the borrower would otherwise owe on the loan. Discount points are tax deductible for the borrower because they qualify as prepaid interest.

discount points

Mortgage fees charged by the lender and treated as additional interest above the face rate in the promissory note in order to obtain an effective rate higher than the stated rate.One point is equal to 1 percent of the loan.

Discount Points

Same as Points.

References in periodicals archive ?
The entrance and exit of bogies, axles and components without major wheels are automatic, based on defined discount points. Ten inputs and ten outputs (ten double movements) per hour are possible.
Al Meera Consumer Goods Company (Al Meera) announced yesterday the launch of 'Meera Rewards', a loyalty programme aimed at thanking and enhancing customer satisfaction through discount points and special promotions, among other benefits.
15, the CFPB released new HMDA reporting requirements, under which credit unions will have to collect new facts, including an applicant's debt-to-income ratio, the interest rate of the loan and the discount points charged for the loan.
These included debt-to-income ratio (DTI), combined loan-to-value ratio (CLTV), the automated underwriting system (AUS) used and results, denial reasons (which, under current rules, are optional), Qualified Mortgage (QM) status, additional rate and points and fees information (interest rate; risk-adjusted, pre-discounted interest rate; total origination charges; total discount points), additional property information (units financed and construction method replacing property type; affordable-housing deed-restriction information), manufactured housing data and unique financial institution identification number.
He said: "We have to try to continue winning in the Premier League to discount points on the leaders.
The special sticker with the Magnis logotype and information about the discount points at
For this purpose, points include amounts (1) designated as such on a closing statement (and are referred to as either loan origination fees, loan discount, discount points, or points); (2) computed as a percentage of the loan amount; and (3) charged under the established business practice of the area in which the residence is located (Rev.
The current discount points back to a basic economic principle.
For those with available monetary assets, the option to pay loan discount points is another consideration.
Guntermann, "FHA Mortgage Discount Points, House Prices and Consumer Behavior," AREUEA Journal 7 no.
This normally includes on origination fee, discount points, title insurance, survey, attorney's fee, end such prepaid items as taxes end insurance escrow payments.
Wardens receive store discount points worth pounds 1 each for hitting targets - which in some places means issuing a ticket every hour.