Construction Glossary
Interest Rate
The cost of borrowing money, expressed as a percentage. Different financing options may have varying interest rates
What Is Interest Rate?
The Interest Rate is the percentage charged or earned on a principal amount of money over a specified period. In construction finance, interest rates impact the cost of borrowing for project financing, affecting overall project budgets and cash flow. Interest rates can be fixed or variable, and their determination depends on factors such as market conditions, creditworthiness, and loan terms.
Example
Cost of borrowing money for construction projects.