Hard Money Loans – What Do They Cost?
Sunday, October 01, 2006
Okay, so let’s suppose you’ve decided upon a hard money loan.
You’ve even located a source you trust, you know what the money’s for, and you have everything lined up.
Fine. But have you considered what all this will cost? Remember, a hard money loan is going to be more expensive than a traditional bank loan. But exactly how much more expensive? Consider the following.
First, know that the interest rate on a hard money loan will be higher than on a traditional loan. You’re paying for getting your money faster. Another cost is the possible up-front fees. Some lenders don’t use them, while others do. Just be aware that they could be a factor in your loan.
You must decide which is more important to you: the quickness of the loan or the interest rate you’ll be paying. In many borrowers’ minds, they want to have their money in hand as fast as possible, so they can make it begin working for them. In such instances, said borrowers go to the nation’s leading private hard money lenders. They can secure your loan commitment in as few as 24 hours, and you can get your money, up to $100 million or more, in typically 10 business days. This is one of Kennedy Funding’s major selling plaudits. In certain instances, however, you can even get it as quickly as two to three days. This is paramount to many hard money borrowers, who are more than willing to pay a slightly higher interest in order to secure their money sooner.
You’ve even located a source you trust, you know what the money’s for, and you have everything lined up.
Fine. But have you considered what all this will cost? Remember, a hard money loan is going to be more expensive than a traditional bank loan. But exactly how much more expensive? Consider the following.
First, know that the interest rate on a hard money loan will be higher than on a traditional loan. You’re paying for getting your money faster. Another cost is the possible up-front fees. Some lenders don’t use them, while others do. Just be aware that they could be a factor in your loan.
You must decide which is more important to you: the quickness of the loan or the interest rate you’ll be paying. In many borrowers’ minds, they want to have their money in hand as fast as possible, so they can make it begin working for them. In such instances, said borrowers go to the nation’s leading private hard money lenders. They can secure your loan commitment in as few as 24 hours, and you can get your money, up to $100 million or more, in typically 10 business days. This is one of Kennedy Funding’s major selling plaudits. In certain instances, however, you can even get it as quickly as two to three days. This is paramount to many hard money borrowers, who are more than willing to pay a slightly higher interest in order to secure their money sooner.
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