As I’m reading all of the options that HMLs can provide, easy money for the deal at a large fee; the question now becomes how do you pay them back.
Most HMLs give you up to six months to pay back, but what happens if you only had the loan for three months? do you pay full interest for all six months or only for the time that you had the loan?
Some HMLs allow you to escrow mortgage payments allowing you to focus on rehabbing and increasing property value rather then sweating where the next mortgage payment is going to come from (not to mention the cost to repair before you are reimbursed).
The answer to your last questions depends on whether a PPP (pre pay penalty) exists—some of the programs I offer actually reward investors for early repayment by rebating a portion of the points invested back to the client.
Hope that answer your question(s).
Most HML do not have prepayments. So if you chose (or was mandatory) to escrow in 6 months of payments, you would get some of those funds back. Usually credited towards your balance to reduce payoff.