The interest rates and points charged by hard money lenders will vary from lender to lender and will also vary from region to region. For example, money lender in singapore generally have lower rates than other parts of the country since Singapore has many hard money lending firms. Increased competition leads to a decrease in prices.
Hard money lenders take on more risk with their loans compared to a conventional bank loan. Due to this higher risk involved on a hard money loan, the interest rates for a hard money loan will be higher than conventional loans. Interest rates for hard money loans range from 10 – 15% depending on the specific lender and the perceived risk of the loan. Points can range anywhere from 2 – 4% of the total amount loaned. The interest rates and points may vary greatly depending on the loan to value ratio.
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