In finance, mortgage yield is a measure of yield of mortgagebacked bonds. It is also known as cash flow yield. The mortgage yield, or cash flow yield, of a mortgagebacked bond is the monthly compounded discount rate at which net present value of all future cash flows from the bond will be equal to the present price of the bond.^{[1]}
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Discount Points (for a Mortgage)

Real Estate Math Free Practice Test1, No 5: Discount Points "Yield" Problem
Transcription
Formula
When the coupon payments are made on a monthly basis, the mortgage yield can be calculated as:
Where
 t  the time of the cash flow
 n  each instance of coupon payment
 r  the discount rate
  the net cash flow (the amount of cash) at time t.
Application
Mortgage yields are primarily a tool for comparing mortgage bonds with conventional bonds. The difference between the mortgagebacked bond's yield (generally converted to semiannually compounded yield to maturity) and a conventional bond is called the "yield spread" or "Ispread."
References
 ^ Choudhry, Moorad. Capital Market Instruments: Analysis and Valuation, (FT Press, 2002), p. 208.