Basis points measure changes in interest rates and other financial percentages, while percentage points measure the difference between two percentages. For example, if the interest rate on a loan increases from 5% to 7%, the difference between the two percentages is 2 percentage points. To convert basis points into a percentage, multiply the basis points by 0.0001. For example, 275 basis equals 0.0275 (275 x 0.0001) or 2.75% (0.0275 x 100). The reverse calculation divides the percent (in decimal form) by 0.0001. For example, if a bond has risen 2.75%, divide 0.0275 (2.75% / 100) by 0.0001 to get 275 basis points. To learn more about HUD multifamily construction loans like the HUD 221(d)(4) loan, fill out the form below and a HUD lending expert will get in touch.