Why No Posted Hard Money Loan Interest Rates Like 30-Year Mortgages?

1 Reply

Borrowers are always searching online for a posted, daily hard money loan interest rates, the same as they would search for today’s rate on a 30-year mortgage. But there is no published, daily interest rate for hard money. Although many people wish that there were, it just doesn't exist. There are many reasons, but a couple explanations include the following. A hard money loan interest rate is often governed by the personal preference of the non-bank, private money lender that is offering the loan interest rate. Also, hard money loan interest rates can be based on supply and demand, the risk associated with the asset or borrower, or even the speed at which the loan must be funded. These factors, but not limited to these, all may affect the interest rates charged by non-bank lenders.

What others reasons would you add for why hard money loan interest rates are always changing? Please comment below.

Posted by Corey Curwick Dutton of Private Money Utah

Underwriting on hard money tends to be a case-by-case basis. Also terms will differ significant from lender to lender and project to project. So there really isn't an equivalent to the conforming, good credit 80% LTV resdential 30 year fixed loan that is often quoted. Also rates/terms likely will be quite variable between different markets. If the lender feels a loss will be 15-20% on foreclosure rates will be lower than if they could reach 40%.

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