What Are The Interest Rates for Hard Money Loans?
Interest rates for hard money loans are a very important factor when you are looking to take out this type of loan.
Any loan from the bank will have low to medium interest rates. Hard money loans rates are different.
A hard money loan from a hard money lender will have extremely high interest rates that make most people cringe at the thought.
Interest rates may vary greatly if you are dealing with a commercial or a private hard money lender.
What Hard Money Interest Rates Can Be Expected
On A Hard Money Loan?
Almost all of the commercial hard money lenders charge an extraordinary interest rate of 12-18% 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 hard money loans!
If you are dealing with a private hard money lender you may find that they are charging an even higher interest rate.
The downfall of a hard money loan is that the person applying has no other options and the lender knows this. They can set their hard money loan 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 Money Loans Can Be Problematic
What is unfortunate about hard money loans is that over half of the customers are unable to pay their loans back. No matter how hard they try because of the extremely high-interest rates & hard money loan terms.
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.
It is the unbelievable interest rates that take down these customers.
The real estate lenders take advantage of their desperateness 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 hard money loan costs and they are forced to start over.
What Are The Downfalls Of A Real Estate Hard Money Loan?
Hard money loans can be described as nothing other than the last resort for most and the interest rates keep going up and up with each passing year.
Take Your Time Considering Hard Money Loans
& Their Interest Rates
If this is an option that you are considering, take the time necessary to find the right hard money loans that will work with your goals.
In addition, really work at finding the best option for you in terms of interest. Do not assume that every lender uses typical hard money loan terms. (See our Hard Money Loan Calculator)
Like any loan, you need the funds at the most affordable price possible. That is not something that is easy to do if you do not do a bit of research into the loan rates available from hard money loan lenders.
Hard money loans are often offered at various rates from various companies.
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, and Texas.
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