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Hard money loan cost calculator
Hard money loans are interest-only with points up front, so the headline rate understates the true cost on short holds. Enter your term sheet to see monthly carry, total financing cost and the effective annualized rate.
Results
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- Monthly interest payment
- Points at closing
- Total interest over term
- Other fees
- Effective annualized cost
- Payoff at maturity (approx.)
Total = interest + points + fees. Assumes full loan outstanding for the whole term; if rehab funds draw gradually and your lender charges interest only on drawn funds, actual interest is lower.
Get real quotes for this deal →How to read the results
The effective annualized cost converts points and fees into an equivalent annual rate for your actual hold period. On a 6-month loan, 2 points add roughly 4% to the effective rate; on a 12-month loan, 2%. This is why comparing two term sheets by rate alone is a mistake — see rates and points explained.
Questions to ask the lender
- Is interest charged on the full loan or only on drawn funds?
- Is there a minimum interest period (e.g., 3 months)?
- What is the extension fee and how many extensions are allowed?
- Which fees are netted from proceeds vs. paid at closing?