[Olderguy]

Hard Money NoDoc (no income documentation) Cash Out Refi:

Loan approval 65% LTV on $6M valuation

1st mortgage $1,800,000
2nd mortgage $450,000
Cash out $500,000

New loan amount: $2,750,000
2% lender fee $55,000
3% broker fee $82,500

Total loan amount: $2,887,500

1% to buy down prepayment penalty to one year:
add $28,875.00 to loan amount

New loan amount with prepayment penalty: $2,916,375

12.99% annual interest rate, interest only payment:
$31,569.76 a month

However, lender said once your file is in underwriting, we can request a 1 year prepayment penalty with 6 months payments built into the loan and eliminate the 1% fee.

That would be 6 X $31,257.19 = $187,543.14 added and put in escrow.

Yes that would be deducted from the loan amount.

However, remember, if we do that you will have NO PAYMENTS ON THE LOAN FOR 6 MONTHS.

We can increase the loan amount to cover that.
So you will still have a new cash out amount of $500,000

Loan amount with fees: $2,887,500
6 mo. payments to eliminate 1% prepayment 187,543
Loan amount: $3,075,043

New loan interest only payment: $33,287 a month

Here is the original loan parameter:

12.99% annual Interest Only
10/20 - fixed for 10 yrs then 20 year Amortization
2% Origination Fee to lender
1% to buy down prepay to 1 year.
3% Broker fee
Appraisal to be ordered by Lender

Reduced prepay cost....
Possibly 6 mos guaranteed interest.
Would have to be decided in underwriting.

Need tri merge credit report and real estate loan application.
A real estate loan application is form 1003.


Here are general hard money options:


Bridge loan - 24 months Interest Only - runs around 11%. Can have no prepayment penalty up to 6 months to a year depending on the lender.


10 year interest only, amortized 20 after. This program has a bit of a lower rate and is good for rental properties as it offers the lowest payment. However, it does have a 5.4.3.2.1 prepayment penalty. Thats 5% first year, 4% second year, etc. You can buy down the prepay to 3 years for 1% cost. To 1 year at a 5% cost. AGain there are variations.


30 year fixed.....this is for long term fixed and the rate is the lowest of the two above. It also has the 5,4,3,2,1 prepayment penalty.