Industry WIKI

A basis point (often abbreviated as bp, often pronounced as "bip" or "beep") is one hundredth of 1 percentage point. Changes of interest rates are often stated in basis points. For example, if an existing interest rate of 10 percent is increased by 1 basis point, the new interest rate would be 10.01 percent.

Home equity is the homeowner's financial interest in their property, calculated as the difference between the property's current market value and the total outstanding balances of all loans secured by the home.