Hard Money Calculator

Using the Hard Money Loan Calculator

This guide will walk you through the process of using the Hard Money Loan Calculator to assess the financial aspects of a potential loan. The calculator requires input fields to be filled and automatically provides key results based on those inputs. Follow these steps to use the calculator effectively.

Step 1: Enter Required Inputs

• Property Value ($):

  Start by entering the property value. This is a number input where you must provide the value of the property involved in the loan. The minimum allowed value is $1,000.

• Loan to Value (LTV):

  Select the loan-to-value ratio from the dropdown options provided. The available options are:

  • 50%
  • 60%
  • 65%
  • 70%
  • 75%

  This selection signifies the proportion of the property value that the lender is willing to finance.

• Annual Interest Rate (%):

  Input the annual interest rate in percentage terms. This field accepts values ranging from 1% to 30%, with increments allowed by 0.1%.

• Loan Term (Months):

  Specify the loan term in months. The term can range from 1 to 36 months, allowing only whole numbers.

• Origination Fee (%):

  Provide the origination fee percentage, which is a cost associated with processing the loan. Acceptable values range from 0% to 10%, adjustable in increments of 0.1%.

Step 2: Review Results

Based on your inputs, the calculator will automatically compute the following results:

• Loan Amount:

  Calculated as the product of the property value and the loan to value ratio, this represents the total loan value you are receiving, displayed in USD.

• Monthly Payment:

  This is the monthly payment amount, determined by the loan amount, interest rate, and loan term. It is calculated using a standard loan amortization formula and will be shown in USD.

• Origination Fee:

  The fee charged for processing the loan, calculated as a percentage of the loan amount. The result is displayed in USD.

• Total Interest:

  This is the total interest paid over the term of the loan, which is calculated as the difference between the total payments made and the original loan amount, presented in USD.

• Total Cost of Loan:

  The overall amount you will pay by the end of the loan term, including all payments and fees, displayed in USD.

• Annual Percentage Rate (APR):

  This percentage represents the effective annual cost of the loan, including fees and interest. It is calculated over a hypothetical year and presented as a percentage.

Utilize these calculated results to make an informed financial decision about your hard money loan.