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» Calcutaling Interest-Only Payments on Hard Money L

Posted on 4/30/2005
Real estate funding, whether purchase or refinance, whether with conventional lenders or hard money lenders, is not a simple task. There are papers to gather and present, financial documents to develop and review, inspections to prepare for, etc. The one really simple thing is to determine the cost of the monthly loan payments on an interest-only loan from Avatar Financial Group.

Take the total cost of the loan and multiply it by the current prime rate + 7% (12.75% at the time of this writing). Divide that by 12 and you have the monthly payment. It's really that simple. All costs and interest are wrapped into the loan, so ask what the sum total of your loan amount will be and make the calculation. It's nice to know some things are easy in real estate funding!
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