Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Why are mortgage notes discounted?

April 26, 2017discounted mortgage notes

0

10 Posted

Why are mortgage notes discounted?

1 Answer

0

10 Posted

Using the forums of the Time Value of Money which means money received today is worth more than money due in the future. When a seller wants to obtain a cash payout, the mortgage must be discounted to make the yield attractive to an investor.