In real estate finance, an Interest Rate is the percentage of a loan amount that is charged for the use of borrowed money over a specified period of time. It represents the cost of borrowing and is most often expressed as an annual percentage.
The interest rate directly affects the size of loan payments and the total cost of financing a property. Rates may be fixed or variable, depending on the loan terms, and are influenced by market conditions, borrower creditworthiness, and lender policies.
