Discount Points: An added loan fee charged by a lender to make the yield on a lower-than-market-interest VA or FHA loan competitive with higher-interest conventional loans. One discount point is equal to 1 percent of the loan amount.

 

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Discount Points: An added loan fee charged by a lender to make the yield on a lower-than-market-interest VA or FHA loan competitive with higher-interest conventional loans. One discount point is equal to 1 p . . . View Full Definition

Points: A fee charged by the lender as additional compensation for making the loan. One 'point' is equal to 1% of the principal amount of the loan.

Discount Point: Some lenders require you to prepay a portion of the interest due on your mortgage as a condition of approving the loan. They set the amount due at one or more discount points, with each disc . . . View Full Definition

Experience Points: In role-playing games or adventures, 'experience points' (often abbreviated to XP) are awarded for successfully completing tasks, or being victorious in combat. The accumulation of these poi . . . View Full Definition

Forward Discount: Annualized percentage difference between spot and forward rates.

Documented Discount Notes: Principle that a nation may not be tried in another country without its consent.

Dividend Discount Model (DDM): A group of shareholders who prefer that the firm follow a particular dividend policy. Such a preference may be based on comparable tax situations.

Discounted Payback Period Rule: Unannounced information that is widely accepted or anticipated, and hence is already taken into account in the pricing of the security/ market (e.g., poor earnings).

Discounted Loan: A loan on which the interest and financing charges are deducted from the face amount when the loan is issued.

Discounting: To sell at a reduced value, the difference between face value and cash value. Some companies specialize in buying mortgages and real estate contracts (often referred to as paper) at a discou . . . View Full Definition