Interest is a cost that’s incurred when money is borrowed, which is a variable percentage of the principal amount. Many factors are involved in the determination of one’s Interest Rate in regards to a real estate transaction. Interest rates rely heavily on credit score, property type, and loan amount. Lending institutions have differing guidelines that must be followed in relation to Interest Rates and terms that can be offered to any investor. There are many things that would allow an investor to obtain an Interest Rate that is reasonable. In some cases, consulting with different brokers and lenders allows an investor to compare lending stipulations and shop around for the best rate. After searching for the best rate, there are a couple of things that can be done to get the rate lowered substantially. Putting forth a sizeable down payment is the most efficient way to obtain a low Interest Rate. Also, the lower the principal amount of the loan, the lower the Interest Rate will be. A smaller loan puts you into a category for lower rate pricing. Another option for investors is to buy the rate down. In doing so, a borrower pays a one time fee to lower the points and/or Interest Rate of the loan or Mortgage. The fees are then added to the closing costs but it is a substantial option for anyone trying to purchase property and maintain the lowest mortgage rate possible.