Points and rates in the hard money world can seem arbitrary and mysterious. Let’s demystify them and look at how Arizona Hard Money Lenders determine them.
Interest rates, while mysterious in their own way, are at least somewhat understandable for the layperson, but points can be a little more confusing, so let’s break down what they are before we get started. Simply put, points are a percentage of the amount being borrowed that the lender charges to close on the loan. For instance, 2 points on a $100,000 hard money loan would be $2,000. Just like the interest rates, the points you’ll be charged are based on one overarching factor — risk.
Let’s take a look at risk and some of the factors that lenders use to determine risk. Namely, exit strategy, experience, and equity.
Equipped with this knowledge, you can come to your Arizona Hard Money Lender well-prepared. Here at Level 4 Funding, we have loans with fixed rates of 5.99% and some loans with absolutely no points, plus flexible terms from 3 to 60 months. Ready to see the great rates you can get on a hard money loan? Contact us today to find out!
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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