MORTGAGE DISCOUNT

mortgage discount.The difference between the mortgage principal and the amount the mortgage actually sells for; the up-front charge by a lender at a real-estate closing for the costs of financing. • Although usu. paid by the buyer, the discount is sometimes paid by the seller when required by law, as with a VA mortgage. — Also termed point; mortgage point; loan-brokerage fee; new-loan fee.

[Blacks Law 8th]