Interest Rate

The rate of return waged to the creditor; the interest rate on a Fixed Rate loan rests the same during the lifetime of the loan; the interest rate for a Floating Rate loan differs with a variable base rate; LIBOR (London Interbank Offered Rate – the average interest rate for lending among banks) is characteristically the base rate for floating rate profitable real estate loans; such loans may be LIBOR + 150bps (Basis Points); 100 basis points = 1.00%