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Investment Property Loans in Katy, Texas

Katy, TX has 50 investment property hard money lenders serving the city. Loan amounts average around $353,000. Interest rates for hard money loans average about 9.8%. The mean loan made in the city is for 51 months. The average origination fee added to the loans is 2.9%. 77% is the average loan to value (LTV) for for loans in Katy.

Loan Example 1

XYZ Funding Corporation makes a private loan to Marina , a local investor in Katy, TX who wishes to buy a $390,000 rental house. The lender agrees to loan Marina 50% of the purchase price of the investment property (LTV), so she will be required to fund the remaining 50%. By the parameters of the deal, the note will be for 4 years at a 11% rate of interest. An origination fee of 5 points will be paid at closing and Marina will have to make interest-only payments with a balloon payment for the principle paid when the note expires. By this deal, Marina will have to make the following payments: 1) $195,000 down when the deal closes (based on the 50% LTV), 2) a $9,750 origination fee (5% x the $195,000 principle), and 3) $1,788 per month in interest payments.

Loan Example 2

Eric wants to acquire an investment property in Katy, TX for $170,000 with a private money loan from XYZ Funding Corporation . Eric and XYZ Funding Corporation contract to a 65% loan-to-value (LTV) so they will loan 65% of the value and Eric will have to come up with the other 35%. The other parameters of the loan are as follows: 1) a 5 year, interest-only loan, 2) a 8% rate of interest, and 3) a 2% origination fee charged at closing. Based on the terms of the deal, Eric 's payments will be $737 monthly. Also, he will need to fund $59,500 in cash to closing plus the $2,210 origination fee. When the note expires, he will have to pay back the $110,500 loan principle in a balloon payment.

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