Local Bank Financing Question
I am currently trying to set up my funding for a flip. I found a local bank that loans on fix & flips and the terms seem better than the Hard Money lenders I've talked to. They will loan 75% of the purchase and 100% of rehab with a minimum $100,000 loan and the rate is WSJP plus 2% interest only, a 2% fee, and a 12 month term. Can someone please explain to me the breakdown of this loan. Lets use an example of a $100,000 purchase price and $40,000 rehab. What would I pay?