Points on hard money loans?

Aug 23, 2009 in Hard Money Loans

Please don’t try to answer this question unless you are personally experienced with hard money loans:

I assume that the following is right. Please correct me if not.

Example:
Need to net ,000 from a HM lender who wants 5 points and 15% for 2 years.

To net ,000, I will in fact have to borrow ,500.

I will pay 15% interest on ,500.

Is that correct? If not, please advise.

Thanks!

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One comment

mibanker on August 23, 2009 at 5:40 pm

You are correct. Your payment will be $509.11/month for 24 months with a total repayment of $12,218.64 Hope that this helps.

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