Service Description

Borrower Information: Name: [Borrower's Name] Property Address: [Property Address] Loan Purpose: [Purchase/Rehabilitation/Refinance] Loan Amount: $[Loan Amount] Loan Terms: Loan Type: Hard Money Loan Interest Rate: [Interest Rate]% (Fixed) APR: [APR]% Loan Term: [Term Length] months Monthly Payments: Interest-only payments of $[Monthly Payment Amount] Fees and Costs: Origination Fee: $[Origination Fee Amount] ([Percentage]% of Loan Amount) Underwriting Fee: $[Underwriting Fee Amount] Processing Fee: $[Processing Fee Amount] Appraisal Fee: $[Appraisal Fee Amount] (if applicable) Legal Fees: $[Legal Fees Amount] (if applicable) Title Insurance: $[Title Insurance Amount] (if applicable) Other Fees: $[Other Fees Amount] (Specify if any) Closing Costs: Total Closing Costs: $[Total Closing Costs] Estimated Cash to Close: $[Cash to Close Amount] Loan Features: Prepayment Penalty: [Yes/No] (Details if applicable) Balloon Payment: [Yes/No] (Details if applicable) LTV Ratio: [LTV Ratio]% Collateral: [Property Type and Details] Property Information: Estimated Property Value: $[Estimated Property Value] Rehabilitation Budget: $[Rehabilitation Budget] (if applicable) ARV: $[ARV Amount] (if applicable) Important Disclosures: Risk Disclosure: Hard money loans have higher risk and interest rates than conventional loans. Ensure you can make monthly payments and understand the terms. Purpose Disclosure: Used for short-term needs like property rehab or bridge loans. Repayment Disclosure: Have a clear exit strategy, such as refinancing or selling the property. Contact Information: Lender: [Lender Name] Loan Officer: [Loan Officer Name] Phone Number: [Phone Number] Email: [Email Address] Address: [Lender Address] Sample Calculation Example: Loan Amount: $200,000 Interest Rate: 12% (Fixed) APR: 14% Loan Term: 12 months Monthly Payments: Interest-only payments of $2,000 Origination Fee: $4,000 (2% of Loan Amount) Underwriting Fee: $1,000 Processing Fee: $500 Appraisal Fee: $500 Title Insurance: $1,000 Total Closing Costs: $7,000 Estimated Cash to Close: $207,000 (Loan Amount + Closing Costs) Important Notes: Interest-Only Payments: Monthly payments cover interest only; principal is due at the end of the term. Prepayment Penalty: Verify if there are penalties for early payoff. Balloon Payment: Check if a balloon payment is required at the end of the term. Understanding the terms, costs, and APR of a hard money loan helps borrowers make informed financing decisions.