Hard Money Lending Fees

What Do Hard Money Lenders Charge?

As with any type of financing, the prevailing interest rates offered by lenders are influenced by the prevailing rates set by the Federal Reserve. 

Present hard money loan interest rates in Q4 2020 range from about 7.99% to 14%. Hard money lenders also charge points on a loan – these are essentially the Hard Money Loan Fees.

Points are origination charges that help manage the administrative costs of the loan and reduce the lender’s risk. One point equates to one percent of the loan.

Normally loan origination costs here in Jacksonville are the same as other U.S. cities, and they typically vary between 1% to 3%. 

As a nationwide hard money lending broker, we will strive to present you with a range of loan options so that you can see a ranger of Hard Money Loan Fees and terms which best suits you and your investment goals.

Money Lending – How Do Lenders Make Their Money?

A traditional bank loan lending institution earns their income through interest payments made by the borrowing party.

But as we touched on in the passage above hard money loan originators make money through a mix of interest and origination charges – it’s important to note that these are the extent of any Hard Money Loan Fees. Naturally all Hard Money Loan Fees will be revealed and explained up front before any loan is issued. It’s not in our best interest to loan to anyone who does not understand the terms with which they are borrowing money. 

So that’s how we make our money. But when we get paid can be up for debate. Hard Money lenders can be much more flexible with their lending conditions than conventional bank lenders and as such we will strive to come to repayment terms that are preferential to the borrower. So if you have any questions about Hard Money Lending fees in Jacksonville, we’d love to answer them for you.


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