Hard Money Loan Calculator
Hard Money Loan Cost
Calculate the total cost of a hard money loan
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Formula
Monthly Interest = Loan x (Rate / 12). Points = Loan x Points%. Total Cost = Total Interest + Points.
Frequently Asked Questions
What is a hard money loan?
A hard money loan is a short-term, asset-based loan from private lenders. Approval is based primarily on the property's value rather than the borrower's creditworthiness. They are commonly used for fix-and-flip projects.
What are points on a hard money loan?
Points are upfront fees charged as a percentage of the loan amount. Each point equals 1% of the loan. A $250,000 loan with 2 points costs $5,000 in origination fees, paid at closing.
What is a typical hard money loan rate?
Hard money loans typically charge 10-15% annual interest plus 1-5 origination points. Terms are usually 6-24 months. The high cost reflects the speed, flexibility, and risk these lenders take.
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