Hard Money question - Posted by Michael

import · February 26, 2002, 8:24am

Posted by RC on February 26, 2002 at 22:14:28:

5 percentage points

import · February 26, 2002, 8:24am

Posted by Michael on February 26, 2002 at 09:24:54:

I have an offer of $300,000 at a 60% LTV.
This is for the purchase of a potential rehab property.
The terms are 15% at 5 points, interest only, with no prepay.
This seems very high to me.
Any opinions would be apreciated.

Thanks!

import · February 26, 2002, 4:04pm

Re: Hard Money question - Posted by Bashir

Posted by Bashir on February 26, 2002 at 17:04:45:

a point is 1 percent. 5 pts = 500 dollars

import · February 26, 2002, 1:17pm

Re: Hard Money question - Posted by SCook85

Posted by SCook85 on February 26, 2002 at 14:17:52:

I’m with Bob on this one. 15% is average, but the 5 points is high, especially for a large loan like that.

I normally pay 1-3 points.

Steve

import · February 26, 2002, 9:48am

Re: Hard Money question - Posted by Bob-Tx

Posted by Bob-Tx on February 26, 2002 at 10:48:30:

The 5% seems high to me. We normally get popped for 2-3% on this type of deal.

import · February 26, 2002, 4:10pm

Re: Hard Money question - Posted by Michael

Posted by Michael on February 26, 2002 at 17:10:42:

Thanks for the math lesson!

By the way.
5% of $300,000 is $15,000

import · February 28, 2002, 4:18pm

Re: Hard Money question - Posted by sean mcguinness

Posted by sean mcguinness on February 28, 2002 at 17:18:23:

whats the difference between the interest percentage of the loan and the point percentage?

import · February 28, 2002, 4:17pm

Re: Hard Money question - Posted by sean mcguinness

Posted by sean mcguinness on February 28, 2002 at 17:17:59:

whats the difference between the interest percentage of the loan and the point percentage?

import · February 26, 2002, 3:46pm

what does 5 points mean? - Posted by sean mcguinness

Posted by sean mcguinness on February 26, 2002 at 16:46:59:

what does 5 points mean?