Hard Money Loan Calculator
Estimate monthly interest-only payments, points, total financing costs, cash needed, and loan-to-value for a short-term real estate investment loan. This estimate is informational only and is not an approval, rate quote, or commitment to lend.
- 1Property
- 2Loan
- 3Costs
- 4Your Results
Step 1 of 4: Property
Tell us about the property
Start with a few details about the property and the financing you are considering.
The estimated current value of the property in its present condition.
This calculator provides an illustrative estimate for educational and planning purposes only. It is not a loan offer, approval, commitment to lend, rate quote, or guarantee of available terms. Interest calculations assume interest-only payments and exclude taxes, insurance, appraisal, legal, inspection, title, escrow, extension, draw, servicing, and prepayment fees unless entered above. Actual rates, payments, points, fees, eligibility, and loan terms vary by borrower, property, lender, valuation, and market conditions. Borrowers should review personalized options with a qualified lending professional.
What Is a Hard Money Loan?
A hard money loan is a short-term, asset-based loan commonly used by real estate investors to acquire or renovate property quickly. Instead of relying primarily on traditional credit and income underwriting, hard money lenders place more emphasis on the property's value and the borrower's project plan.
These loans are typically interest-only, meaning monthly payments cover interest but do not reduce the principal balance. The full loan amount remains due at maturity. Because program requirements and availability vary by lender, borrower, and property, Anchor Capital Lending helps investors review and compare available hard money financing options for their scenario.
How Hard Money Loan Costs Work
Interest-only payments
Monthly payments cover interest on the loan amount. The principal balance is not reduced during the term and remains due at maturity.
Origination points
An upfront fee expressed as a percentage of the loan amount. One point equals 1% of the loan amount and is part of the total financing cost.
Other closing costs
Additional upfront costs such as appraisal, title, legal, and inspection fees. This calculator includes only the amounts you enter.
Interest-Only Payments and Origination Points
Because hard money loans are interest-only, the monthly payment is calculated by dividing the annual interest on the loan amount by 12. For example, a $350,000 loan at 11% generates roughly $3,208 per month in interest-only payments. Over a 12-month term, the total interest is approximately $38,500.
Origination points are paid upfront and are separate from interest. Two points on a $350,000 loan equals a $7,000 origination fee. The estimated total financing cost combines total interest, the origination fee, and any other closing costs you enter.
Common Uses for Hard Money Financing
Quick acquisitions
Investors use hard money to close quickly when speed matters more than the cost of short-term financing.
Bridge financing
A short-term bridge until a property is refinanced into longer-term financing or sold.
Renovation projects
Investors financing a purchase and renovation may use hard money before stabilizing the property.
Hard Money vs. Traditional Financing
Traditional mortgages typically offer longer terms (15 to 30 years), lower interest rates, and underwriting that heavily weighs credit and income. They are designed for long-term ownership and generally take longer to close.
Hard money loans are short-term, carry higher rates and points, and focus on the property and project plan. They are used as bridge or project financing rather than long-term financing. The right approach depends on the investor's strategy, timeline, and exit plan.
Frequently Asked Questions
What is a hard money loan?
A hard money loan is a short-term, asset-based loan commonly used by real estate investors to acquire or renovate property quickly. Instead of relying primarily on traditional credit and income underwriting, hard money lenders place more emphasis on the property's value and the borrower's project plan. These loans are typically interest-only and intended to be held for a short period before refinancing or selling.
How is a hard money loan different from a traditional mortgage?
Traditional mortgages usually have longer terms (15 to 30 years), lower interest rates, and underwriting that heavily weighs credit and income. Hard money loans are short-term (often 6 to 24 months), carry higher rates and points, and focus on the property and project. They are generally used as bridge or project financing rather than long-term financing.
What are origination points?
Origination points are an upfront fee charged by the lender, expressed as a percentage of the loan amount. One point equals 1% of the loan amount. For example, two points on a $350,000 loan equals a $7,000 origination fee. Points are separate from interest and are part of the total estimated financing cost.
Does this calculator include every cost of a hard money loan?
No. This calculator estimates the monthly interest-only payment, total interest, origination fee, and the other closing costs you enter. It does not include taxes, insurance, appraisal, legal, inspection, title, escrow, extension, draw, servicing, or prepayment fees unless you add them. Your actual costs will be provided during a personalized review with the lending team.
What is loan-to-value (LTV) on a hard money loan?
Loan-to-value compares the requested loan amount to the property's current as-is value. Loan-to-purchase price compares the loan amount to the purchase price. Both help lenders understand how much of the property's value or cost the loan represents. This calculator shows both ratios so you can review the scenario from each angle.
Is this calculator result a loan offer or approval?
No. The result is an informational estimate for educational and planning purposes only. It is not a loan offer, approval, commitment to lend, rate quote, or guarantee of available terms. Actual rates, payments, points, fees, eligibility, and loan terms are determined following review by the appropriate licensed lending professional.
Ready to Review Your Hard Money Options?
Schedule a consultation to discuss your property, project, and available lending options. We'll review your scenario and help identify the appropriate next steps.
Submitting an inquiry does not guarantee approval or constitute a commitment to lend. Financing availability and terms are determined following review by the appropriate licensed lending professional.
This calculator provides an illustrative estimate for educational and planning purposes only. It is not a loan offer, approval, commitment to lend, rate quote, or guarantee of available terms. Interest calculations assume interest-only payments and exclude taxes, insurance, appraisal, legal, inspection, title, escrow, extension, draw, servicing, and prepayment fees unless entered above. Actual rates, payments, points, fees, eligibility, and loan terms vary by borrower, property, lender, valuation, and market conditions. Borrowers should review personalized options with a qualified lending professional.