Hi All!
Just a quick question, I am trying to figure out how to calculate what the monthly payment would be on a hard money loan.
Basically the numbers are:
$100,000 loan
15.99% interest
5 year term

The loan would probably be more like 165k, and when I worked with this lender before, the loan I got through him was considered a 5 year balloon loan. Not sure if this would be as well?

I don’t want to approach him again until I get a ballpark of what exactly I am asking him for and if I can make the numbers work! Also, there is something about 5-6 points??? Not sure if that is needed to calculate the monthly pmt.
Thanks for your help! :help

We also need to know how many years the loan payment will be based on.
Is it a 30 year loan interest only with a 5 yr ballon payment? Can be a 15yr loan…All factor into the payment.

As for points, that is paid on front end, unless lender will let you roll points into loan which generally does not happen.

You may also have the option of splitting the points up, that is, maybe paying 2 on the front end and 3 on the back, or some combination thereof. I know of at least one major national HML that will do this.

If the loan is interest only, a six month loan, a five year loan, and a thirty year loan all have the same monthly payment. Interest only loan payments are determined by the amount borrowed, not the length of the loan term. Since the loan is interest only, there is no amortization period to factor into the calculations.