HML .... help in understanding the Interest and Points

[Michael Dunn]

Can someone with a lot for knowledge regarding HMLs , help me in understanding how the Interest and Points work with a Hard Money Loan ?

EXAMPLE:

Say a HML says they charge 4 Points with an Interest Rate of 12%

If The TOTAL Loan ( Purchase Price + Rehab costs )  =  $80,000

How much can I Assume to pay via Points and Interest Rate , given that the Loan is for 5 months ?

And is this the Total that I heard someone mention that the Closing Costs on a HML they aquired was $6,000 on an All-In cost of $100,000

So did this $6,000 likely include all the Points and Interest Rate via the HML ?

Thanks so much 

[John Thedford]

It depends on how they structure the loan. Some HML ask for points at closing. Other roll the points into the note. As an example, if I loan 100K at 12% (per anum) and roll the points into the note the note would be for 104K at 12% (1% per month). If they roll the points into the loan (as I do) the borrower usually only pays their closing costs.