Real Estate Investing Glossary
Interest rate
An interest rate is the cost of borrowing money, stated as a percentage of the loan balance.
An interest rate is the cost of borrowing money, stated as a percentage of the loan balance. It determines how much interest builds up on a mortgage over time.
Why it matters to a Las Vegas investor
Interest is a large part of the monthly cost of a financed rental, so changes in rates move the cost of every Las Vegas property you consider. Our monthly market reports discuss the interest rate environment alongside buyer demand.
Read more from Fernwood
- How Will You Finance Your First Rental Property?
- Las Vegas Real Estate Investment Market Report, October 2026
- Achieving Your Passive Income Goal with Less Capital
Related terms
Questions about Interest rate
Is the interest rate the full cost of a loan?
Not quite. Fees and other charges also add to the cost of a loan, so the rate alone does not tell the whole story.
What is the difference between a fixed and an adjustable rate?
A fixed rate stays the same for the term of the loan. An adjustable rate can change over time according to the loan’s terms.