Discount Rate
Definition of "Discount rate"
(1) The interest rate used to convert future receipts or payments in connection with real estate property to their present value. The cost of capital is used as the discount rate under the net present value method. (2) Also called the rediscount rate. The interest rate charged by the Federal Reserve Bank to its member banks for loans. A change in the discount rate will have a significant impact on the real estate market. See also capitalization rate.
Popular Real Estate Terms
A leasehold estate that can be determined by the lesser or lessee at any time. ...
An adjustment to the internal rate of return (IRR) computation so as to improve this measure. This uses a risk-free after-tax rate and a customary rate for money reinvestment. ...
A zero lot line is a term in residential real estate that refers to houses that are either very close to or at the edge of the property line. These houses are also called zero lot line ...
The meaning of an undisclosed principal in everyday use often refers to a confidential client who intends to keep their identity hidden. Typically, this individual remains in the background ...
The annuity factor definition is the use of a financial method that shows the value, present or future, of an amount when it is multiplied by a periodic amount. The calculation of an ...
Something that is of good value for the money and an attractive deal. ...
Wood sheeting made from gluing together at lest three layers of veneer. The grain is placed at right angles with each adjoining layer's providing additional strength. ...
A wall or roof which extends beyond a lower wall. ...
Total expenditure to modernize a building to meet the owner's or tenant's needs. ...
Have a question or comment?
We're here to help.