An interest rate is the cost that happens when money is borrowed, which is a percentage of the amount taken that you must pay in addition to the original amount. Interest rates are based on credit score, property type, and loan amount. Each lender has different ways to determine their Interest Rates and terms so it is important to compare lenders and shop around for the best rate. Usually the greater the down payment, the lower the Interest Rate. The same goes for the amount, the lower the loan amount the lower the Interest Rate. There is also another way called a buy down where you pay a fee to lower the points and Interest Rate of the loan or Mortgage. The fee is then added to the closing costs for your investment property.