Enter Zip, City, or County... i.e. orange,NY or 90019
Search Method:    regular time edocs

Resources > Glossary > Basis Point

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

0-9  A  [B]  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z  
Common Terms 1   Common Terms 2

Basis Point

Phonetics: ba·sis point    \'bāsəs\    \'pȯint\

Function: noun

Definition 1:
A basis point is 1/100th of a percentage point. For example, a fee calculated as 50 basis points of a loan amount of $100,000 would be 0.50% or $500. A basis point is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed-income security. A basis point can be abbreviated as BPS. So, a bond whose yield increases from 6% to 6.4% is said to increase by 40 basis points; or an interest rate that has risen 1% can be said to have increased by 100 basis points.

Thesaurus / Related Terms