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Hard Money - Interest Only Payments
By David Schmidt - February 9, 2018
A majority of hard money loans or private equity loans are funded in a manner that the note reflects interest only payments. This type of loan is exactly as it sounds whereas the borrower pays monthly interest payments on the principle while the balance of the loan remains the same. Most of the time borrowers that require hard money require capital for the finishing of a project or to carry the note until more permanent financing is found.
To calculate interest only payments one needs to multiply the balance of the loan by the interest rate and then divide by 12 for every month.
Hard money loans from CoHI are strictly a short term solution to your financing needs and these loans are not intended for long terms.
Please call David at CoHI Colorado at 970-922-3277 to discuss your lending requirements.