Loan in which the entire financing charge is subtracted from the initial loan proceeds. The total amount of funds received is the face value of the loan less this deduction. For example, a $50,000 one-year loan borrowed at a discount rate of 12% would result in $44,000 being disbursed at the loan closing. The effective interest rate would be 13.6%, not the 12% discount rate (since only $44,000 is received).
Discount point
The amount added to closing costs in exchange for a lower interest rate on a loan (same concept as prepaid interest). One point is equal to one percent of the loan.
Discount rate
The interest rate charged by the Federal Reserve Bank to its member banks for loans. Changes in this rate will have a significant impact on the real estate market.
Discounted cash flow
A method to estimate the value of a real estate investment, which emphasizes after-tax cash flows and the return on the invested dollars discounted over time to reflect a discounted yield. The value of the real estate investment is the present worth of the future after-tax cash flows from the investment, discounted at the investor's desired rate of return.
Discounting
A method of financial and economic analysis used to determine present and future values of investments or expenses.
Discrimination
Unequal treatment and denial of opportunity to individuals based on race, color, creed, nationality, age or sex. Civil Rights Acts passed by congress, included those of 1866, 1870, 1871, 1875, 1964 and 1968.
Discriminatory
Inducement Real estate property incentive offered for reasons other than individual merit, such as an effort to get an individual to buy/sell through the unfair use of bias.
Dishwasher tailpiece
A flanged adapter connecting a basket strainer to the drainpipe with a dishwasher inlet.
Disinflation
A lessening in the rate of inflation that may occur during a recession.
Disintegration
The transformation of a racially integrated neighborhood housing pattern into segregated housing. Alternately, deterioration, destruction or decay.
