Hard money loan calculator.

Hard money questions, answered.

Is a hard money lender calculator the same as a hard money mortgage calculator?

Yes — hard money loan calculator, hard money lender calculator and hard money mortgage calculator all describe the same arithmetic, and this one covers it. The naming varies because the loan does: it is a mortgage in the sense that the property secures it, and it comes from a private lender rather than a bank. Whichever phrase you searched, the numbers you need are the loan amount, the interest-only payment, the points and fees due at close, and the effective annual cost once those fees are spread over a short hold.

How do you calculate hard money loan payments, and how is the interest calculated?

Hard money is almost always interest-only, so the monthly payment is the loan balance multiplied by your annual rate and divided by twelve — the principal is repaid in full at exit rather than amortized down. Take the loan amount, multiply by the rate on your term sheet, divide by twelve, and that is the monthly cost. Points and fees sit outside that payment and are settled at close.

How much do I need to put down on a hard money loan?

The gap between the purchase price and the loan, plus the costs due at close. Leverage is set against the property rather than your income: on an as-is purchase the loan is a percentage of current value, and on a rehab deal it is a percentage of the after-repair value with the construction budget drawn as work completes. The ladder in the calculator shows the cash required at each leverage point.

How hard is it to get a hard money loan?

Easier than a bank loan and faster, because the property and the exit carry the file rather than tax returns and employment history. What a lender actually underwrites is whether the asset supports the debt and whether your plan to repay is credible — a sale, a refinance, or a completed project. A weak exit is the usual reason a file that looks strong on paper does not fund.

What is the typical interest rate on a hard money loan?

NexWin Capital Corp. places lender capital rather than setting the price, so we will not publish a number that would read as a quote. What moves it is straightforward: leverage against the property, the length of the hold, the condition of the asset, and how credible the exit is. Use the rate from a term sheet you have actually been given — the calculator above is built to take yours as an input.

Why is the effective cost higher than the rate I was quoted?

Because points and fees are paid once but earned over a short term. Two points on a six-month loan cost the same dollars as two points on a thirty-year mortgage, spread over one sixtieth of the time, so annualized they are enormous. The calculator shows the note rate and the effective annualized cost side by side. Shorten the hold and the gap widens; extend it and the effective cost falls toward the rate.

Is this calculator a loan offer?

No. It is arithmetic that runs in your browser and nothing is submitted when you use it. The figures are estimates for planning, not an appraisal, quote, pre-approval, offer or commitment to lend. A term sheet from a lender NexWin Capital Corp. places you with is the only thing that sets real numbers.