Definition: In lending, interest is the charge for using borrowed money. In property law, an interest is a legal right or stake in property, such as an ownership interest or a leasehold interest.
Example
At 6% simple annual interest, an unchanged $10,000 balance accrues $600 over one year. This simplified example does not describe an amortizing mortgage payment schedule.
Keep the distinction clear
An interest rate is a percentage; interest is the resulting charge. A property interest describes rights, not a borrowing cost. Read the surrounding sentence to identify the meaning.
Related terms
Principal · Mortgage · Freehold Estate · Leasehold Estate
Keep studying
Mortgages: Borrower, Lender, Ownership, and Key Clauses
References: CFPB mortgage terms
Pronunciation (US): IN-truhst (capitals show stress)
Pronunciation reference: Merriam-Webster
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