Hard money calculator
Hard money loans are priced differently from a regular mortgage.
See what you would pay each month, what the fees add up to and, most important, what is due at the end.
Questions? Call 516-499-1731.
Estimate what the loan costs
Put in the terms a lender has quoted you. The arithmetic happens inside your own browser: nothing you type here is sent to us, saved, or shared with anyone.
This is an estimate, not an offer.
It leaves out property taxes, insurance, mortgage insurance, escrow, late charges, legal fees and other costs unless you enter them. It is not a quote or a promise of credit. Your actual payment comes from a lender's written disclosure. Prime Real Estate Consultants is not a lender or a mortgage broker.
In plain English: escrow is money a third party holds until a deal closes.
The terms you were quoted
Your estimate
Fill in the boxes and choose Calculate cost. Your estimate will appear here, and it will be read out for screen readers.
Balloon payment due at the end of the term
Not calculated
This is the amount due in a single sum on the day the term ends. On an interest-only loan it is the whole of what you borrowed. Your monthly payments do not reduce it.
| Loan-to-value ratio | Not calculated |
|---|---|
| Estimated monthly payment | Not calculated |
| Points and fees due at closing | Not calculated |
| Total interest paid over the term | Not calculated |
| Balloon payment due at the end of the term | Not calculated |
| Total cost of borrowing | Not calculated |
Loan-to-value ratio is the loan divided by the property value, written as a percentage. Total cost of borrowing is the interest over the term plus the points and fees. It does not include the principal itself, which you still owe.
Plan for the balloon payment
Look at the balloon payment first. It is the amount due in a single sum when the term ends, and it is usually most of the loan.
Before you take a loan like this, know exactly how that payment gets made, and on what date: a sale, a refinance you are likely to qualify for, or a sum you know is coming. If you cannot say it, this is not the right tool for your situation.
“Something will work out by then” is not a plan. If the balloon cannot be paid, the lender can foreclose, and there is less equity left than there was before.
Also compare the points and fees due at closing with the money you actually receive. On a short-term loan, fees can be a large share of it.
What this calculator assumes
- One fixed interest rate for the whole term. If the rate can change, or a higher default rate applies after a missed payment, the real cost is higher than this.
- Either interest only, or level payments across the term. Whichever you chose. Nothing in between, and no interest held back at closing.
- Every payment made in full and on time. No late charges and no default interest are included.
- No prepayment penalty, no extension fee, and no exit fee. Ask the lender in writing whether any of the three applies.
- Only the points and fees you typed in. Title, appraisal, escrow, recording and legal costs are not in here unless you entered them as other lender fees.
- The property value you typed in. A lender will use its own appraisal or its own view of what the property will be worth after repairs, and that figure may not be yours.
Every line above is a question to put to the lender in writing before you sign anything.
Before you sign the loan papers
Get every page of the loan documents and take them to an attorney before you sign, not after. A hard money loan is secured by your home, and the terms are in the papers, not the conversation.
Our Hard Money Lending Information page lists nine questions to ask any lender. Some of them this calculator cannot answer: the annual percentage rate (which folds the fees into the rate), the prepayment penalty, the default rate and the lender's license in your state.
A lender lends against what is recorded on your property, so see it first. The Homeowner Research Document gives you every filing on your property, connected, dated and counted, with the data from homes like yours and alerts when anything changes.
Talk to a person.
Call 516-499-1731, Monday through Friday, 9:00 AM to 6:00 PM. Saturday appointments are available on request. If we are with another client, leave a message with your name, your phone number, and the county your property is in, and we will call you back.
Prime Real Estate Consultants
70 Sunrise Highway, Suite 500, Valley Stream, NY 11581
customerservice@
| Monday to Friday | 9:00 AM to 6:00 PM |
|---|---|
| Saturday | By appointment only |
| Sunday | Closed |
Free help is also available.
You do not have to pay anyone for help with a foreclosure. HUD-approved housing counseling agencies give free counseling nationwide. Call 1-800-569-4287 or visit hud.gov. Many states and counties also run free foreclosure prevention programs. We want you to know about them, whether or not you ever hire us.
If you have a sale date or a court date coming up, call a licensed attorney today.
We are not a law firm.
Prime Real Estate Consultants is a property research and consulting business. We do not practice law or represent anyone, and nothing on this site is legal, tax or financial advice. Contacting us or buying a service does not create an attorney-client relationship.