I am arguing with my friend that the 10 k left over will add on to paying the loan off is this correct? Or is this added on to loan regardless if I spend or not? This is a hard money loan.
it can go either way. My lender will just leave it in escrow and only payoff what I've drawn. Obviously the funds left in escrow go back to them and you only refi/payoff the draw amount.
makes sense thanks, lol I think he doesn't understand hard money loans.
Some folks call that "fudge factor" to allow for things not quite going as planned.
You better make certain that is the case. ...Generally interest is going to apply on the amount funded from day one. If you think your lender is going to give you funds for zero cost, I suspect you are in error.