Are you in need of a personal hard money loan?
You may have a need for some extra cash to pay for an unexpected expense.
These loans are short-term and secured by real property. The length of the loan can be anywhere from two to five years.
Read on to learn more about hard money loans!
One important aspect of your hard money loan is the interest rate you will be charged.
When you borrow money, you will pay back the original amount loaned, called the principal, plus the interest. The interest is what it cost you to borrow the money.
For example, if you borrow $90,000 and your interest rate is 10% it would cost you approximately $750.00 a month in interest for that money. [$90,000.00 X 10%] / 12 months = $750.00
Interest rates typically range anywhere from 8% to 12%.
Other Loan Terms
Generally, a hard money loan is financed anywhere from two to five years. There are other loan programs available with slightly shorter or much longer loan terms.
Many hard money loans are interest only with a balloon payment due at the end of the loan term. This means that your monthly payment only covers the interest of the loan and none of the principal. This allows your payment to be more manageable until you refinance or sell.
Most hard money loans come with a prepayment penalty period. This is a penalty the borrower must pay for paying off the loan early. ARC Capital’s hard money loans are more flexible and come with shorter prepayment penalty periods which enable a borrower to refinance the loan or sell the property sooner.
Take time before taking out this loan to consider what your needs will be and how this loan will help you.
When you’re choosing where to take out your loan, it’s important to work with a reputable lender in your area.
How long has this company been in business and are they known for their customer service?
One of the biggest advantages of a hard money lender is that they can often approve you quickly.
If you’re short on time, you will need a lender who can act quickly on your behalf to make the loan.
Using ARC Capital Hard Money Loans
These loans can be a great tool to receive financial assistance but choosing your lender is an important decision.
At ARC Capital, we are a California-based company that specializes in private money lending.
Founded in 2007, we work with our clients to help you meet your financial goals through alternative financing options.
We are experienced in making hard money loans and finding the terms that will best fit your needs.
We work with clients on Acreage, Residential and Commercial properties.
Contact us today to learn more about how we can help you with your financial needs!