Hard Money Loan Cost Calculator
Rate is only part of the price. See what a hard money loan really costs from closing to payoff.
- Adds up points, lender fees, draw fees and interest
- Compares Dutch and non-Dutch interest side by side
- Shows a month-by-month view and a break-even sale price
The numbers below are examples only. Replace them with your own deal and the terms you were quoted. They are not Beltway Lending's rates or terms.
Your estimate
Estimates only. Not financial, tax or legal advice, not a loan offer or commitment to lend, and not a guarantee of results. Rates and costs shown are examples or numbers you entered, not Beltway Lending's rates or terms. Actual terms depend on the property, the borrower and the loan program. Calculator terms
- Loan amount = purchase price x share of purchase financed + rehab budget x share of rehab financed.
- Initial advance = purchase price x share of purchase financed. Rehab holdback = rehab budget x share of rehab financed. Down payment = purchase price minus the initial advance.
- Draws: the holdback is paid out in the number of draws you enter, starting in month 2 and spread across the months until payoff (more than one draw can land in the same month). Even draws are equal. Front-loaded draws shrink step by step (for 4 draws: 4, 3, 2, 1 parts of 10). Back-loaded draws grow (1, 2, 3, 4 parts). If you pay off in month 1, all draws are counted in month 1. We assume the whole holdback is drawn before payoff.
- Monthly interest = balance x yearly rate / 12, paid monthly (interest-only).
- Non-Dutch (funds drawn): each month's balance is the initial advance plus draws paid out so far. Total interest = the sum of those monthly amounts.
- Dutch (full loan): total interest = loan amount x yearly rate / 12 x months.
- Points = loan amount x points %. Draw fees = fee per draw x number of draws.
- Total cost of borrowing = interest + points + lender fees + draw fees.
- Estimated effective rate = total cost of borrowing / average drawn balance x 12 / months. This is a rough yearly cost on the money you actually used. It is an estimate, not an APR.
- Cash to close = down payment + buy closing costs + points + lender fees. We assume interest is paid monthly, not prepaid at closing.
- Total cash you put in = cash to close + rehab not financed + interest + draw fees + holding costs.
- Loan to ARV = loan amount / ARV. Loan to cost = loan amount / (purchase + rehab).
- Payoff at maturity = all money advanced (the full loan once every draw is paid), plus that month's interest if it has not been paid yet.
- Break-even sale price = (purchase + rehab + buy closing costs + total cost of borrowing + holding costs) / (1 - selling costs %).
Not included: extension fees, default interest, prepayment terms, minimum interest, prepaid interest, appraisal and title items you did not enter. Ask any lender for these in writing.
Month by month
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