Collegeville, PA has 50 investment property lenders operating in the city. The average note amount in this city is $286,818. The average interest rate for hard money loans in Collegeville is 12.8%. 19 months is the average length for loans made in this city. The average loan offered in this city carries a 3.2 point origination charge. 74% is the median loan to value for for loans in Collegeville.
Clarence decides to acquire an investment property in Collegeville, PA that costs $260,000. Because he doesn't have enough cash for the sale and can't get a traditional bank loan, he obtains a private money loan from Progressive Investment Group . Clarence and Progressive Investment Group agree to a 70% loan-to-value (LTV) so they will contribute 70% of the value and Clarence will be responsible for the other 30%. They also stipulate a 3 year, interest only loan at a 14% rate of interest, with 5 origination points paid at closing. Based on the parameters of the loan, Clarence 's payments will be $2,123 on a monthly basis. Additionally, he will have to bring $78,000 in cash to closing along with the $9,100 origination fee. When the note expires, he will have to pay back the $182,000 loan principle in a final balloon payment.
Red City Investment Company issues a hard money loan to John , a local investor in Collegeville, PA who wishes to acquire a $170,000 investment property. The lender loans John 85% of the list price of the property (LTV), so he will need to pay the other 15%. The other guidelines of the deal are the following: 1) a 5 year, interest-only loan, 2) a 10% interest rate, and 3) 3 origination points charged when the deal closes. Given this scenario, John will have to make these payments: 1) $25,500 down when the loan closes (due to the 85% LTV), 2) a $4,335 origination fee (3% x the $144,500 loan principle), and 3) $1,204 per month in interest payments.