What this measures
Hard money is often interest-only and short. Points are a fee charged up front as a percent of the loan. This page shows that monthly interest, the points in dollars, and interest across the months you type.
It does not model draws, a Dutch interest schedule, extension fees, or a prepayment penalty. Add those yourself if your term sheet has them.
Formula
Monthly interest = loan amount × annual rate ÷ 12. Points cost = loan amount × points percent. Total interest = monthly interest × months.
The rate and points are percents you type, not a rate sheet. A 12 in the rate field means 12 percent a year.
Example
Example
The sample loan, rate, points, and months below are a check of that interest-only math. Monthly interest is $1,500. Points cost is $3,000. Total interest is $18,000.
Example. These inputs are numbers you can replace. They are not a property RE Underwrite Lab bought, sold, listed, or inspected.
Questions
Is the payment principal and interest?
No. The monthly figure is interest only. The loan amount is still outstanding at the end of the term you typed.
Are points included in the monthly interest?
No. Points are shown as their own dollar cost. They are not spread across the months.
Does this include draws?
No. The loan amount stays constant. A draw schedule belongs in the paid loan calculator, not on this page.
Is this a commitment to lend?
No. It is arithmetic on the four numbers you type.
What if the term is in years?
Type months. A one-year term is 12 in the months field.