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» How Much Will the Hard Money Loan Cost?

Posted on 4/8/2005

Avatar Financial Group offers interest-only payments on hard money loans. The monthly cost of a loan with a 12% interest rate is 1% of the loan total per month. Current rates at the time of this writing are prime + 6.99% or about 12.5%. Points and closing costs (with the exception of due diligence costs) can be wrapped into the loan. Account for that in your calculations when determining the monthly outlay.

Avatar and other hard money lenders like to see a 1.2:1 income to expense ratio. This ensures that the borrower will have sufficient funds to operate, pay expenses, including the Avatar loan, and still have a profit at the end of each month. Avatar makes loans that make sense - for the borrwer as well as the lender.

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