Bridge Loans in ,
Saylorsburg, PA has 50 hard money bridge lenders operating in the city. In this city, the median note amount is $288,750. Interest rates on loans issued to Saylorsburg investors average around 11.1%. 17 months is the median length for notes issued in the city. The mean points applied to the loans is 3.0%. 77% is the average loan to value (LTV) offered for offered by lenders in Saylorsburg.
Loan Example 1
Brent closes on a $160,000 rehab project in Saylorsburg, PA, using a hard money bridge loan from K & M Finance Company . The lender agrees to issue a note with a 60% loan to value (LTV) so they will loan $96,000 on the property. The rate on the loan is 8% for a term of 12 months and the lender requires a two point origination fee at the close. The interest payments are to be paid monthly and the principle will be repaid after the property sells.
Brent will have to bring $64,000 to the closing (40% on the 60% loan-to-value), plus he will pay the $1,920 origination fee. he must then pay $640 per month to K & M Finance Company . If Brent sells the project for $208,000 after 12 months, he would then make a gross profit of $38,400 after subtracting the principle amount of $96,000, the funds contributed at closing of $64,000, the origination points of $1,920, and the aggregate interest payments of $7,680. This gross profit doesn't include renovation costs.
Loan Example 2
Craig is a an investor in Saylorsburg, PA. He finds a run-down townhouse for a rehab project and obtains a hard money bridge loan from East Star Lending Group with the following paramters:
$210,000 purchase price
85% loan-to-value (LTV)
12 month term
12% rate of interest
3% origination fee
Once the renovation project is complete, if Craig sells the project for $283,500, the outcome would be as follows:
$283,500 sales price
- $178,500 principle on note (85% LTV)
- $31,500 down payment (15% on 85% LTV)
- $5,355 origination points (3% of the $178,500 principle)
- $21,420 interest payments (12 months x 12% interest)
= $46,725 gross profit (doesn't include taxes or renovation costs)