Hard money loan example

[Greg Clark]

I'm looking to understand hard-money loans better and I'm hoping to get some help from the BP community.

Are most hard-money loans interest only?

For an interest-only loan, to calculate the cost, does the following look correct:

Principal = $100,000

APR = 10%

Loan duration = 4 months

Total cost = (($100,000 x 0.1)/12) x 4 = $3,333.33

And assuming that is correct (please let me know if it's not), how do you calculate non-interest-only loan costs? Is it amortized over the course of a set term? Or is it amortized at a longer term with a balloon payment after 1 year (or some other term)?

Example A:

Principal = $100,000

APR = 10%

Amortization term = 5 years

Balloon payment = due after 1 year

So on July 1st 2021 the remaining $83,773 is due?

Example B:

Principal = $100,000

APR = 10%

Term = 1 year

Are either of these examples correct, and if not, can you help me understand better?

Thanks in advance!

I'm looking to understand hard-money loans better and I'm hoping to get some help from the BP community.
Are most hard-money loans interest only?
For an interest-only loan, to calculate the cost, does the following look correct:
Principal = $100,000
APR = 10%
Loan duration = 4 months
Total cost = (($100,000 x 0.1)/12) x 4 = $3,333.33

And assuming that is correct (please let me know if it's not), how do you calculate non-interest-only loan costs? Is it amortized over the course of a set term? Or is it amortized at a longer term with a balloon payment after 1 year?