This page shows what points do to a short hold, costs a full flip line by line, and lists the fees that never make the headline.
The rate is not the number that matters
Every hard money lender advertises an interest rate, and every borrower compares those rates. It is the wrong comparison. Once points, closing costs and the length of your hold are counted, the true annualized cost of a hard money loan sits well above whatever rate appeared on the term sheet, and the shorter the hold, the wider that gap gets.
That is not a criticism of the product. It is what short-term asset-based money costs, and on the right deal it is worth paying. But you cannot judge a deal on the rate alone, and a lender who quotes only a rate is relying on you doing exactly that.
What hard money pricing looks like in 2026
Pricing differs by what you are borrowing against and how much of the risk the lender is carrying. The pattern holds across the market even though every lender sets its own numbers:
| Type of deal | Where it tends to price | Why |
|---|---|---|
| Fix and flip, experienced borrower | Toward the lower end | A documented record of finished projects is the clearest evidence the lender will be repaid. |
| Fix and flip, first deal | Higher | Inexperience is priced, usually through rate, points or lower leverage, rather than refused outright. |
| Bridge on a finished property | Lower than a heavy rehab | The collateral is already worth what the loan assumes. |
| Heavy renovation | Higher | Most of the value depends on work that has not been done yet. |
| Ground-up construction | Highest | Completion risk sits on top of everything else. |
| Second position | Above first position | The lender is paid only after the existing lien. |
For context, Freddie Mac's weekly survey put the average 30-year fixed mortgage at 7.28% on October 1, 2026. That survey tracks owner-occupied home loans with strong credit. Hard money is more expensive by design: you are paying for speed and for a lender who will look at a property a bank will not.
Through our lending partners, fix-and-flip, rehab and bridge financing is priced from 12.99% interest plus 2.99 points as standard. Loans start at $50,000 with a minimum credit score of 600, and leverage runs up to 100% of cost (purchase plus rehab) and up to 70% of after-repair value, whichever limit is reached first. Borrowers who have paid off two loans with the lending partner in good standing can qualify for loyalty pricing of 10.99% plus 1.99 points. Every term is set by the lender for your specific deal.
Have a deal on the table?
Send the address, the numbers and your exit. Our lending partner's team reviews it and tells you whether it fits and on what terms. The lender makes every credit decision.
Points, and why they hurt more than the rate
A point is 1% of the loan amount, charged up front at closing. At the standard 2.99 points, a $200,000 loan carries $5,980 in origination before a single month of interest.
Here is the part worth understanding properly. On a short hold, points weigh more heavily than the interest rate, because you pay them once whether you own the property for four months or twelve, while interest stops accruing the day you exit.
Ask whether points are due in cash at closing or can be included in the loan, and budget for them separately from the down payment either way. They are a real cost of the capital and belong in your profit math.
A full deal, costed out
Numbers rather than ranges. This is a small flip financed at the standard pricing above, held for twelve months to show the full cost.
$150,000 purchase, $40,000 rehab
| Purchase price | $150,000 |
| Loan at 70% of the purchase price | $105,000 |
| Your down payment | $45,000 |
| Interest, 12.99% interest-only for 12 months | $13,640 |
| Origination, 2.99 points on $105,000 | $3,140 |
| Closing and title (example) | $3,000 |
| Renovation budget | $40,000 |
| Total project cost | $209,780 |
| Cost of the money alone | $19,780 |
Monthly interest is about $1,137: $105,000 at 12.99%, divided by twelve. Exit in six months rather than twelve and you save about $6,820 of interest but not a dollar of the points.
Run those numbers as an annual rate and the effect of points becomes obvious. Over twelve months the money costs about 19% of the loan. Over six months it costs about $12,960, which is roughly 12.3% of the loan in half a year, or close to 25% annualized. The faster flip is still the more profitable one, but the points are why the cost per month climbs as the hold gets shorter.
That is what the financing costs before you have made a single decision about paint or countertops. Which is why the resale number has to be honest, and why a four-month overrun is a far bigger problem than a slightly higher rate.
What actually moves your rate
Seven things, and you control more of them than you might think.
- Leverage. The single biggest lever. Borrowing less against the deal almost always improves the terms, because the lender's cushion is larger.
- Your track record. Repeat borrowers with completed deals get better pricing. Our lending partners size leverage on experience documented over the past three years, and their loyalty pricing is reserved for borrowers with two paid-off loans.
- Property type and condition. A finished house prices better than a heavy renovation, and a heavy renovation better than bare land.
- How clear your exit is. A credible, evidenced plan to sell or refinance improves your terms. A vague one costs you.
- Location. Properties in active markets with plenty of recent sales are easier for a lender to value and, if it ever came to it, to sell.
- Credit. Less important than on a conventional mortgage, but not irrelevant. Our lending partners set 600 as the floor on fix and flip and bridge, and a stronger file helps the overall picture.
- The wider rate environment. Federal Reserve policy does not move hard money one for one, but it sets the floor under what private capital costs.
The fees nobody puts in the headline
Ask about every one of these before you sign anything. A lender who will not put them in writing on a term sheet is telling you something.
- Processing and underwriting fees. Charged on top of points by some lenders. Flat fees, and they add up.
- Appraisal, title and recording. Third-party costs, the same as on any mortgage. Real money, and yours.
- Extension fees. If the project runs past the maturity date, an extension usually carries a fee plus continued interest. Better than defaulting, and it eats margin quickly. Get the price in writing before you close.
- Prepayment penalties. Some lenders charge for paying off early, which matters enormously if your whole strategy depends on selling fast. Ask specifically.
- Draw fees. A charge each time rehab money is released, on some programs, often with an inspection fee alongside it.
One thing to know about paperwork: a business-purpose loan on an investment property falls outside the federal consumer mortgage rules, so you will not receive the standardized Loan Estimate and Closing Disclosure a homebuyer gets. Hold the term sheet and the settlement statement to the same standard anyway. Read every line before signing, and question anything you do not recognize. A fee that appears for the first time at closing is the clearest signal you are dealing with the wrong lender.
Get your deal reviewed
Answer these and your deal goes to our lending partner's team, who will contact you about whether it is fundable and on what terms. By sending it you agree to your details being shared with them. Investment property only: our lending partners do not finance a home you will live in.
Got it.
Thank you. Your details are on their way to our lending partner's team, who will contact you shortly.
Rate and fee questions
What interest rate should I expect on a hard money loan right now?
Through our lending partners, fix and flip, rehab and bridge loans are priced from 12.99% plus 2.99 points as standard. Across the market, pricing moves with your experience, your leverage and how much work the property needs, so first deals and heavy renovations sit higher than repeat borrowers on light projects.
How much does a hard money loan really cost once points are added?
On a $105,000 loan at 12.99% plus 2.99 points with $3,000 of closing costs, the money costs about $19,780 over twelve months, roughly 19% of the loan. Over six months it is about $12,960, which works out close to 25% annualized because the points are paid in full however short the hold.
How many points will I pay on a hard money loan?
The standard on our lending partners' fix and flip and bridge loans is 2.99 points, and one point is 1% of the loan amount. On a $200,000 loan that is $5,980. Ask every lender when points are due and whether they can be included in the loan.
Is a lower rate with more points a better deal?
Not on a short hold. Points are paid once whatever happens, while interest stops when you exit, so a quick flip often comes out cheaper at a higher rate with fewer points. Price each quote against your realistic timeline before choosing.
Can I get the 10.99% rate on my first flip?
No. 10.99% plus 1.99 points is loyalty pricing for borrowers who have paid off two loans with the lending partner in good standing. A first-time borrower should plan around the standard 12.99% plus 2.99 points.
What fees should I ask about besides the rate?
Processing and underwriting fees, appraisal and title, draw and inspection fees, extension pricing and any prepayment penalty. Ask for all of them in writing on the term sheet before you commit, because an extension or a penalty can undo the logic of a fast flip.
Sources
- Freddie Mac, Primary Mortgage Market Survey, 30-year fixed average of 7.28% on October 1, 2026 (accessed Oct 2026)
- CFPB, Regulation Z 12 CFR 1026.3, exempt transactions, business-purpose credit is outside the consumer mortgage disclosure rules (accessed Oct 2026)
- CFPB, Loan Estimate explainer, the standardized disclosure consumer homebuyers receive and how to read it line by line (accessed Oct 2026)
- Federal Reserve, open market operations and the federal funds target range, the policy rate that sets the floor under short-term borrowing costs (accessed Oct 2026)
Dominion Hard Money does not lend its own funds; it arranges financing through third-party lending partners. All financing is arranged for business purposes only and secured by non-owner-occupied investment property. Not a commitment to lend. All loans subject to underwriting, property review, and approval by the lender. Terms vary by property, borrower experience, and exit strategy.