Are These Typical Terms?

Financing, Hard Money Lenders, Private Money
1

I’m looking for a loan for a rental property in the range 700 - 900K.

I met with a local bank and here are there terms (as of yesterday):

For 80% LTV:

-10 year guaranteed interest rate
-$12,500 fixed fees
-1% good faith deposit at rate lock
-30 year amortization
-Net worth of guarantors must be greater than loan amount
-Full recourse

Is this typical? Rate quoted yesterday was 7.03%

Thanks,
Jeff

2

That is a normal deal. The terms are not better or worse than you would get from a broker. I hope the $12,500 includes the point you are paying upfront.

3

Yes, the $12,500 includes everything.

Thanks for the reply.