Hard money questions - exit strategy

[Nathan Bell]

Does the hard money company decide when you eligible for a regular mortgage or will they let you exit as soon as you can , can find a bank to take over the loan that is? How does this transition happen is there a second closing cost envolved ? Can someone post a success story with some numbers ? Thanks BP

[Ann Bellamy]

That will depend on the hard money lender.  It's not about "letting you go".  It's about what it costs you to payoff the loan when you refi.  If there is no prepayment penalty, then it shouldn't cost anything extra.  But be sure to ask your lender about back end costs.  Some lenders charge fees at payoff or extra points or even a percentage of the deal.  So ask in advance, and be sure and read all loan docs carefully.