Mortgage Terms: Basis points are used in computing and calculating the interest rate in real estate transaction.

One basis point is equal to 1/100th of 1%, or 0.01%, and is used to denote the percentage change in a financial instrument.

Question

Basis points are used in computing and calculating the interest rate in real estate transaction.

One basis point is equal to 1/100th of 1%, or 0.01%, and is used to denote the percentage change in a financial instrument.

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Basis Point

Basis points are used in computing and calculating the interest rate in real estate transaction. One basis point is equal to 1/100th of 1%, or 0.01%, and is used to denote the percentage change in a financial instrument.