If you’re financing your next construction project for a rental property, you want both your interest rate and your closing costs kept as low as possible. When building and flipping, your goal is net income—the amount that goes into your bank account after all costs are deducted from the project from a great time right now to buildconstruction costs to selling costs.

The lower the costs the more money you make, right? Closing costs on a construction loan provides an opportunity to negotiate lower fees but the interest rate on your construction note will be dictated by your bank. You’ll certainly want to shop around, but once you’ve made your choice, the banks’ rates will be available for you to select.

Building new right now makes much more sense than building later on in the year in terms of rates. Are rates going up this fall? No one can answer that question with certainty but that doesn’t keep people from guessing. And there are those who are guessing that rates might just be on the rise toward the end of this year. Why would someone say that?

Last week, new Fed Chair Janet Yellen announced a change regarding when to begin raising interest rates. Prior to the announcement, the Fed made it clear that once the national unemployment rate hit 6.5 percent, then raising rates would be a possibility but until then they’ll stay where they are. The new shift removes the 6.5 percent milestone and replaces it with a more general, nuanced approach, where raising rates would be more of a combination of several factors, not just a magical unemployment number. So wouldn’t that also suggest rates staying where they are now if the Fed just removed the 6.5 percent requirement?

No one knows and that’s the point. Rates are excellent right now but they may not be later on. And when the Fed’s QEII program ends later this fall, rates will have little place to move but up. This is all prognostication, but it makes sense.