With our standard interest rate of 9.99% fixed for 5 years and only 2 origination points, American Life Financial's "NOT SO HARD MONEY" loan program is one of the lowest cost loans in the non-conforming real estate lending market today!
When calculating the total cost of any loan, consider the following:
- Interest rate (fixed or variable?)
- Origination points and closing costs
- Duration of the loan (short-term that may require an extension?)
Most hard money loans are short-term (between 6 and 18 months). One problem with these loans is that time flies by much faster than you expect and all too often, before you know it, your balloon payment becomes due. You are then at the lender's mercy. They can either require you pay the loan off or they can foreclose, or they can charge you fees to extend your loan. This can be very expensive since they are holding all the cards.
Our Not So Hard Money loans have a 5-year term, giving you plenty of time for your exit strategy; or your Plan B; or your Plan C.... :)