Private & Alternative Mortgage Cost Calculator
A 8.99% private mortgage with $8,500 in fees costs 15.54% a year on the $141,500 you actually receive.
Effective annual cost on the money you receive
15.54%
The quoted rate is 8.99%, but $8,500 of fees comes off the top and the term is only 12 months. You receive $141,500, not $150,000.
- Monthly payment
- $1,123.75
- Net funds you receive
- $141,500
- Total cost over the term
- $21,985
- Combined loan-to-value
- 66.7%
Interest only
| Amount | |
|---|---|
| Loan amount | $150,000 |
| Lender fee | −$3,000 |
| Broker fee | −$3,000 |
| Legal and appraisal | −$2,500 |
| Net funds advanced | $141,500 |
| Interest over 12 months | $13,485 |
| Balance at end of term | $150,000 |
Private lending has a purpose — and an exit plan
Private and alternative mortgages solve short-term problems that conventional lenders cannot: credit repair, self-employment income, a property in transition, a tight closing. They are expensive by design, so the plan for moving back to a conventional lender matters as much as the loan itself.Private lending terms vary widely. Fees, renewal costs and prepayment conditions should all be reviewed carefully before signing. Clover Mortgage Inc. is a licensed mortgage brokerage. This calculator provides estimates for information only and is not an offer of credit, an approval, or financial advice.
Every mortgage is different. A Clover Mortgage broker can confirm what you actually qualify for across more than 50 lenders — at no cost to you.
Effective annual cost
15.54%
Common questions
- Why is the effective cost higher than the rate?
- Lender and broker fees are deducted from the funds advanced but calculated on the full loan, and on a one-year term there is no time to spread them out. A 9% mortgage with 3% in fees costs closer to 12% on the money you actually get.