Points on hard money loans?

Please don't try to answer this question unless you are personally experienced with hard money loans: I assume that the following is right. Please correct me if not. Example: Need to net $10,000 from a HM lender who wants 5 points and 15% for 2 years. To net $10,000, I will in fact have to borrow $10,500. I will pay 15% interest on $10,500. Is that correct? If not, please advise. Thanks!

2 years ago - 1 answers