If I borrowed 50,000 from HML for 12% - 4points how much is that? I dont know how they figure it, Sorry if someone tells me once I will remmeber :} I only want if for 6mths, till I fix up and sell. Thanks!!!
%12 + 4 points is essentially %16 total…$55,000 @ %12= $6,600 + 4 points is $2,200…total is $8,800
Thk Thats alot for 6 mths :}
Couple of questions…
1.Are you cross collateralizing this loan?..You mentioned that you were looking for %100 financing for the 4th house and that you paid the other 3 in all cash (no mortgages/liens)…Did the lender make you pledge these houses as additional collateral to get the 4th %100 loan?..Because I’m currently unaware of any hard money lender or conventional lender doing %100 LTV or ARV loans…It is typical for a hard money lender to ask for additional collateral if the LTV on the loan the borrower is seeking is deemed risky or the LTV is too high…Be very careful you are not biting off more than you can chew with this 4th house…A hard money lender will NOT lose on this loan…You have everything to lose (if you are pledging collateral)…I dont see how you could possibly get a loan if you werent…
- A typical 6 month hard money loan is about %7.5 ( representing 1/2 of the %15 annual rate) plus about 4-6 points…Plus legal fees and closing costs etc…So yes your loan is a bit on the expensive side…IMO a $55,000 …6 month hard money loan should be about $6,875 total…%7.5 interest + 5 points = %12.5 total…then you add in the other costs…Especially if you are collateralizing this deal with the other homes because the hard money lender has a no brainer deal that has essentially %0 risk on the lending side…You have all the risk and the lender has %0…
It was boa 80% loan . I wondered how long I have to keep other 3 before I can refinance because i didnt mean to pay cash. I made a mistake not noticing that they said cash only when I bid on them. I was only going to but them w/ 20% down :{