mortgage

What are basis points?

 

 

What are basis points?

The Bankrate.com financial term of the day is: "Basis Point"

You'll notice that mortgage rates are typically given in numbers that go two digits beyond the decimal point. The movement of those rates is expressed in terms of basis points. One basis point is equal to one one-hundredth of a percentage point. So when an average rate, for example, rises from 4.51 percent to 4.52's a difference of 1 basis point.
 
Mortgage rates move up and down in a kind of increment called a basis point, which is the same as 0.01 percent.

To find a great rate on a home loan, visit the Mortgage section at Bankrate.com.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
 

A little research could save you BIG on interest.

Don't have time? Our rate-tracker tool saves you time and money. Delivered Thursdays.
 
advertisement
Partner Center
advertisement

Blog

Tara Baukus Mello

Save money on gas over Labor Day

Wal-Mart has jumped on the gas savings bandwagon with its Great Gas Rollback program.  ... Read more


Connect with us