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Hard Money Loan Fee Calculator

Hard money loans fund quick acquisition + rehab at higher rate than traditional financing.

$
%

Total cost

$20,250

Monthly interest

$1,650

Origination fee

$5,400

How the math works

Monthly interest = loan × rate. Total = interest × months + origination.

$180k × 11%/12 = $1,650/mo × 9 = $14,850 + $5,400 origination = $20,250 total cost.

How to Use

  1. Enter loan amount.
  2. Enter rate %.
  3. Enter origination points.
  4. Enter term months.
  5. Read total cost.

Frequently Asked Questions

Hard money loan terms?

Rate: 8–14% interest-only typical. Origination: 2–5 points. Term: 6–24 months. LTV: 65–80% of ARV (sometimes 100% LTC if track record). Reserves: 3–6 months interest required by some lenders. No prepayment penalty common. Lender pool: regional + national specialists (Kiavi, Lima One, Fund That Flip, RCN). Quicker close than bank: 7–21 days. Borrower personal guarantee typical. Best for: experienced flippers, transitional assets, quick close needs.

How does this debt analysis fit a workout strategy?

Workout, default, and recapitalization decisions depend on the gap between in-place debt and current asset value. Lenders evaluate cure cost, foreclosure timeline + cost, broker price opinion (BPO), and borrower equity. Borrowers evaluate equity in the property, refinance feasibility, and forbearance economics. This calculator provides one input to that multi-factor decision.

Discounted payoff (DPO) vs forbearance vs deed in lieu?

DPO: lender accepts less than full balance to avoid foreclosure cost, common with non-recourse and underwater assets. Forbearance: payment deferral 6–18 months, balance accrues, useful when value will recover. Deed in lieu: borrower transfers title to lender, faster than foreclosure but lender takes full risk. DPO often best when borrower has new capital + lender wants quick exit.

Special servicing dynamics?

CMBS loans transfer to special servicer at default or maturity default. Special servicer compensation aligns with workout, but timeline is 6–24 months and fees stack ($25–250k+ in costs). Whole-loan and balance-sheet lenders move faster but with less flexibility. Bridge and debt fund lenders most flexible. Time-to-resolution and total friction cost should be weighted in any borrower scenario.

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