Hard Money Cost Calculator
What the money actually costs: points, interest-only payments, and the all-in price of speed — so the loan stops being a surprise line in the flip.
Education only — not a loan offer, not lending advice. The rate, points, and fees are YOUR scenario inputs; no lender is offering these terms on this page.
SCENARIO MATH ONLY — NOT A LOAN OFFER, QUOTE, OR LENDER. Rates, points, and terms here are inputs YOU supply from a real term sheet. AltaPoint is not a lender or broker and does not arrange loans.
How the math works
Points = loan × points% ÷ 100, paid at closing. Monthly interest-only = loan × annual rate ÷ 12. Total cost = points + (monthly × months) + fees. Net proceeds = loan − points − fees. LTV = loan ÷ ARV; LTC = loan ÷ total project cost. The effective annualized figure spreads points and fees across the actual months the loan is out — which is why a 9-month loan’s true cost runs well above its note rate. Drawn percentage scales the interest to the average drawn balance when rehab funds draw over time.
A worked example
A $300,000 loan at 12% and 2 points for 9 months, $3,500 in fees, fully drawn: interest-only payments of $3,000 a month, $27,000 of interest, $6,000 of points — $36,500 total cost of the money, $290,500 net proceeds, 75% LTV and 75% LTC on a $400,000 ARV/project, and a 16.75% effective annualized cost. The note says 12; the deal pays 16.75.
Questions from the field
What do hard money loans cost? Whatever your term sheet says — commonly low-double-digit rates plus 1–3 points. This page turns a term sheet into total dollars and an effective annualized cost; it is not a quote and AltaPoint is not a lender.
Why is the effective rate higher than the note rate? Points and fees are paid up front but the loan is short. $9,500 of closing cost on a 9-month loan annualizes hard. The shorter the hold, the wider the gap.
What is LTC vs LTV? LTV measures the loan against the finished value (ARV); LTC measures it against everything the project costs. Lenders quote both; your risk lives in the difference.
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