The interest rate your lender gives you isn't the true cost of your mortgage. Learn how to calculate your effective interest rate, including any discount points.

However, if the price was in, let's say, the mid $60s, then the choice of an estimated discount rate would be very important. All discount rates originate in the same place, with an interest rate.

Buffett has said that he likes to use the U.S. Treasury rate as his preferred discount rate with an adjustment for uncertainty. Other common considerations include inflation and interest rates ...