Use This Calculator to Calculate Your Hard Money Loan in Minutes

If you are seeking a way to fund your real estate investment and traditional financing sources are not an option,. If this is the case you may be considering a hard money loan. Hard money loans are a popular form of financing in the real estate industry. Particularly for fix-and-flip projects or short-term investments. But how do you know what you will need to pay before going through an approval process. Here is hard money loan calculator for your convenience.

Unlike traditional banks, hard money lenders focus on the value of the property rather than the borrower’s creditworthiness. As a result, hard money loans have higher interest rates and shorter repayment terms than traditional loans. However, they also offer faster funding and more flexibility in their lending criteria.

When considering a hard money loan, it is important to understand the terms, costs, and fees associated with the loan. Fortunately, there are several easy-to-use calculators available online. They can help you quickly calculate your potential loan amounts, interest rates, and repayment terms.

Loan Amount Calculator

The first calculator to use in hard money loan calculator is a loan amount calculator. This calculates the maximum amount of money you can borrow from a hard money lender. It takes into account the loan to value ratio (LTV) and the after repair value (ARV) of the property.

The LTV ratio is the percentage of the property’s value that the lender is willing to lend. For example, if the property is worth $500,000 and the LTV ratio is 70%, the maximum loan the lender will provide is $350,000.

The ARV is the projected value of the property after repairs have been completed. For example, if a property is currently worth $500,000 but is expected to be worth $750,000 after repairs, the lender will consider the ARV value when calculating the loan amount.

Interest Rate Calculator

The interest rate calculator helps determine your monthly payment amount based on your loan amount and the interest rate offered by the lender. Hard money loan interest rates typically range from 8% to 18%, with an average of about 12%.

Hard money loan calculator takes into account the principal loan amount, interest rate, and loan term to calculate the monthly payment. It is important to note that hard money loans usually have shorter loan terms. The typical repayment period for a hard money loan is between 6 and 12 months. Although some lenders may offer longer terms up to 24 months.

Points Calculator

The points calculator helps to determine the fees associated with obtaining a hard money loan, known as “points”. Points are a percentage of the loan amount,. It usually ranging from 1% to 5%, and are paid upfront to the lender at the time of closing.

For example, if a lender offers a loan of $300,000 with a point fee of 3%, the fee would be $9,000. The points calculator helps to determine the total cost of these fees and should be factored into the total cost of the loan.

Closing Cost Calculator

The closing cost calculator is used to calculate the total cost of obtaining a hard money loan, including all fees associated with the loan. This calculator factors in points fees, lender fees, and any additional costs such as appraisal, title insurance, and recording fees.

The closing cost calculator provides an estimate of total expenses to consider when applying for a hard money loan. It is important to review all costs associated with a loan to ensure it is financially viable.

Loan Schedule Calculator

The loan schedule calculator helps to determine the repayment schedule for a hard money loan. This tool calculates the principal and interest payments for each month of the loan term, providing a detailed breakdown of payments.

The loan schedule calculator takes into account the loan amount, interest rate, and loan term to provide a monthly payment amount. This tool is helpful for planning the repayment of the loan and budgeting for the payments.

Conclusion

When considering a hard money loan for your real estate investment, there are several tools available to help you calculate loan amounts, interest rates, fees, and repayment schedules. These calculators provide a straightforward and easy-to-use way to estimate the costs associated with a hard money loan.

While hard money loans may have higher interest rates and shorter repayment terms than traditional loans, they offer faster funding and more flexibility in their lending criteria. Hard money loans are an excellent option for real estate investors looking to finance fix-and-flip projects or short-term investments.

In conclusion, using these calculators can help you quickly and easily evaluate your hard money loan options and determine which loan is the most affordable for you.