Hard Money Loan Calculator
Calculate house flipping hard money interest-only payments, upfront lender points, and net financing totals for real estate rehabs.
Interactive Calculator
1. Provide Details
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2. Output Results
How to Calculate: Formula & Steps
Calculates monthly interest payments and adds upfront underwriting points fee coefficients.
Formula Used:
Monthly Payment = Loan Principal × Interest Rate ÷ 12; Points Fee = Loan Principal × Points %Step-by-Step Calculation Example
Borrowing $187,500 (75% LTV on $250k total) at 12% interest with 2.5 points for 6 months costs $1,875/month in interest and $4,687 in points fees. Total cost: $15,937.
Common Mistakes to Avoid
- Failing to budget for holding costs or rehab delays, which prolong high-interest payment terms.
Practical Use Cases
- Analyzing house flipping property deals
- Comparing lender terms and interest charges
Expert Tips
- Lenders often lend based on ARV (After Repair Value) rather than purchase price. Confirm the loan structure before closing.
Frequently Asked Questions About Hard Money Loan Calculator
What is a hard money loan?
A short-term, high-interest loan secured by real estate, commonly used by house flippers and developers to purchase and rehab properties.
What are 'points' on a hard money loan?
Points are upfront lender origination fees. 1 point equals 1% of the total loan principal.
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