Definition of "Discount rate"

Mary Braatz real estate agent

Written by

Mary Braatzelite badge icon

RE/MAX Enterprises

(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.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

A reassessment or a reappraising is a decision or strategy made by the owner or the state or local authorities. The reassessment definition is a revision of an earlier assessment. Property ...

Ownership rights to real or other types of tangible or intangible property. Property rights include exclusive occupancy, possession, use, and the right of disposition. Individuals groups, ...

The legal definition of conversion is the act of using property or funds with which one has been entrusted for purposes other than those for which the property was intended to be used by ...

Did you invent something recently? Even if it’s the smallest device or idea, such as a fidget spinner, it would be best to submit a patent application for your idea (or seek patent ...

The Debt-to-Income Ratio’s (DTI) definition is a measure that allows one to compare the ability an individual has to afford a monthly debt payment out of their monthly gross income. ...

Wood panels on a wall. ...

Want to understand exactly what is a real estate consultant?Well, it’s hard to define a real estate consultant by its duties, because it’s very similar to that of a real estate ...

Grades have various definitions related to real estate and surveying land. Let’s have a look at the most common meanings of grades you’ll encounter in everyday life! Grades ...

A collection of packaged residential mortgage loans for sale in the secondary mortgage market to investors. Companies with mortgage pools expect to earn a short-term profit and use the ...

Popular Real Estate Questions