The rate is not
dependent on Central
Bank Rate but more
dependent on the real
estate market and
availability of hard
money credit. When
a borrower defaults they
may be charged a higher
"Default Rate".which may
go up to or around
18%–28%. Some
investors insist on
getting interest
payments for certain
number of years or
months, in this case
there will be a
prepayment penalty. The
penalty will insure that
in the event the
investor is being paid
prior to certain time he
will be guaranteed
additional interest
payments.
There is
no direct way to know the rate
and terms on private loans.
Factors such s property
condition and market condition
at the time of the loan request
play important role. "The
property is more important than
the borrower" is the key
dominant argument when lenders deciding on
approving any hard loan . The
table below shows hard money
rates and terms common
considerations. Since each loans
is unique there may be
other factors involved in
the underwriting consideration.
The best way to find out is to
have a
basic request done and shop
your hard loan among several
lenders/brokers/ investors.
