Discount Points (or Points) Financial Glossary

What is it? The amount paid either to maintain or lower the interest rate charged. Each point is equal to one percent (1%) of the loan amount (i.e., two points on a $100,000 mortgage would equal $2,000).

Finance Term Definition Added By: Nathan

Send To Friends!

If you'd like to send the Discount Points (or Points) definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -

We hope you now understand the meaning of Discount Points (or Points). If you need any more information on this term, please don't hesitate to contact us.

Other Similar Finance Terms:

Financial Term principal component analysis (PCA) is A mathematical tool used to reduce the number of variables while retaining the original variability of the data The first principal component accounts for as much of the variability in the data as possible, and each succeeding component accounts for as much of the remaining variability as possible. In interest rate risk analysis, PCA is applied to define non-parallel yield curve sifts to model. The number of variables is equal to the number of points on the yield curve, the first principal component is the rate level, the second is the twist or rotation of the yield curve around a pivot point and the third is the change in curvature or bow in the yield curve.

Financial Term Financial Aid Consultant is A person who, for a fee, provides a variety of services to students and parents, including preparing the FAFSA and other financial aid forms, estimating the Expected Family Contribution (EFC), and estimating financial need.

Financial Term Borrower is A mortgagor who receives funds in the form of a loan with the obligation of repaying the loan in fully with interest, if applicable.

Financial Term Theta is Theta is the rate at which the price of a financial option decreases due to the passage of time. Theta is also called Time Decay.

Financial Term Load Fund is A mutual fund that carries a sales charge.