What Are The Interest Rates for Hard Money Loans? Our Hard Money Loan Interest Rate Advice
The rates for these loans are very important
when considering using hard money lenders.
Our rate advice is below:
So, what are the interest rates for hard money loans, and why should you care?
The hard money lender rates can vary from 12% up to 25%. Various variables affect this, and this article will try and shed some light on how they are calculated.
Any loan from the bank will have low to medium interest. A hard money loan and rates are different.
A loan from a hard money lender will have extremely high rates of interest that most people cringe at.
This may vary greatly if you deal with a commercial or a private money lender.
Hard Money Loan – What Rates Can Be Expected?
Commercial hard lenders charge an extraordinary interest rate of 12% to 25% for this private money. This is double the amount of any bank interest rate on a traditional loan that you will find even if you are approved.
These are rates that no one wants to see associated with their loans!
Hard Money Rates – Learn More Here…
If you are dealing with a private money lender, you may find that they are charging an even higher interest rate.
The downfall of this type of loan is that the person applying has no other options, and the lender knows this. They can set their rates accordingly.
Therefore, they may decide to be greedy and charge an even higher interest rate than the commercial hard money lenders, and the borrower cannot turn it down, as they have no other options left.
Paying Back Hard Loans Can Be Problematic
What is unfortunate about these loans is that over half of the customers cannot repay their loans. No matter how hard they try, because of the extremely high costs involved.
The other half get lucky and make ends meet, or they are already wealthy and using these bank-free loans to increase their growing income.
Hard Money Lender Rates Can Be Very Varied
It is the unbelievable rates that take down these customers.
Real estate lenders take advantage of their desperation and charge extreme amounts to increase their gross profit on this short-term loan.
In the end, most customers have their homes foreclosed by the lender due to the costs and are forced to start over.
What Are The Downfalls Of A Hard Loan?
Very high costs. A Hard money loan can be described as nothing but the last resort for most.
Take Your Time Considering All The Variables.
If this is an option you are considering, take the time necessary to find the right hard money loan that will work with your goals.
In addition, work at finding the best option for you in terms of interest. Do not assume that every lender uses typical terms. (See our Hard Money Loan Calculator)
Like any loan, you need the funds at the most affordable price possible. That is not easy to do if you do not research the loan rates available from all the lenders.
Hard money loans are often offered at various rates from various companies.
Have Any Interest Rates for Hard Money Loans Questions Left? – Then Get In Touch!
You Found DFW Hard Money
Investment Real Estate Loans
DFW Hard Money is a lender offering investment real estate loans in:
Fort Worth, Dallas, DFW Metroplex, San Antonio, Austin, Houston, Colorado, Georgia, Kansas, Missouri,
Oklahoma, North Carolina, Tennessee, S. Carolina, SLC Utah and Texas.
As Hard Money Lenders – We strive to make the process quick and easy for all parties to the transaction.
We offer competitive, hard money loans and hard money loan rates in the current hard money lending marketplace.
Real Estate Investment Loans