WHAT INTEREST RATE CAN A BORROWER EXPECT TO PAY FOR HARD EQUITY LOANS?
Borrowers can expect to pay between 14-15% interest on money loaned and collateralized with first or second position mortgages against real property. The interest rate which is determined by the lender varies based on several factors including the equity position of the borrower, the type of property (commercial or residential), lien position, duration of the loan, and the marketability of the property. While the higher interest may not be acceptable to all borrowers many accept the higher rate as a price to pay for the convenience and other benefits of a Hard Equity loan.
