Based in New York City, Trevor Cole Commercial Corp offers varied commercial and real estate loan types to its clients. One type of loan offered by Trevor Cole Commercial Corp is a hard money loan.
Individuals and companies, rather than banks or related established financial institutions, offer hard money loans. A hard money loan differs from a traditional one because it uses the property itself as collateral. If the borrower cannot pay off the loan used to pay for the property, then the lender can generate profit from it. Borrowers usually choose hard money loans if they need cash quickly, their poor credit prevents them from qualifying for other loan types, or if they know they can pay off the loan and circumvent its drawbacks. Lenders can issue cash faster than traditional financial institutions because they usually do not use factors like borrowers' credit scores to determine eligibility. Hard money loan terms last between one and three years. A hard money loan’s primary drawback is its higher costs. Borrowers pay not only a higher down payment and closing fees but also higher interest rates. In 2020, American hard money loan borrowers paid an average 11.25 percent interest rate, with rates as low as 7.5 percent and as high as 15 percent, between two and 10 percent higher than other loan types.
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AuthorTrevor Cole Commercial Corporation of New York City specializes in procuring funding for large real estate projects, including multifamily properties and office buildings across the nation. Archives
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