Hard Money Loan Offer
Hello all!
I'm a novice, so forgive me if I sound naïve.
My property (owned free and clear of any mortgage) is appraised at 100k.
A lender has offered me this to refurb the house:
Loan $30k
Rate 16%
Points 5
Amortization/
Term 10 years
Escrow Taxes/insurance/repairs
Pre-payment
Penalty None
My question is, is this a good/fair deal?
My plan is to either sell the property for top dollar, or rent it for a very nice ROI.
As always, your thoughts are appreciated.
Most Popular Reply
It's actually pretty bad, but for a loan amount that small as a mortgage, you may not be able to do any better.
The flat costs of CFPB compliance are there no matter how small the loan -- this is what the outcome of that looks like. They have to make up for it by offering worse terms/conditions on the loan.
You might be better off going with an unsecured loan. Either a personal line of credit or, frankly, a credit card.