Hard Money Terms Sheet... 12% and 2pts?

[Ryan Clements]

Howdy folks: Looking for a 2nd set of eyes on a hard money terms sheet... Can I get a few thoughts on fair value? Is this similar to what others are seeing? First experience w/ hard money.

Loan amount: $27,000

Interest Rate: 12%

Term: 3-months

Origination Points Owed by Borrower: 2 points ($540)

Monthly Payment (30 year fixed amortized): $272 ($27,000-$540=$26,460)

Points payable at payoff: 0 points ($0)

Prepayment Penalty: None

Loan Extension: 3-months

Loan Extension Points: 2 points ($540)

[Chris Mason]

For such a small loan amount, you're lucky to find anyone even willing to do it.