Real Estate Word of the Day: Interest Rate
Posted by Tom Crimmins Realty on
Real Estate Word of the Day: Interest Rate
An interest rate is the cost of borrowing money, expressed as a percentage. It's the fee charged by a lender to a borrower for the privilege of using their funds. When you take out a loan, such as a mortgage to buy a home, you agree to pay back the amount borrowed along with the interest accrued over the loan's term.
Interest rates play a central role in the real estate market, influencing both buyers and sellers. Interest rates directly impact the affordability of real estate. Lower interest rates mean lower monthly mortgage payments, making homeownership more accessible to a broader range of buyers. On the flip side, higher interest rates can reduce purchasing power, potentially pricing some buyers out of…
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