Fix and Flip Loan Calculator

Because points and flat charges are paid once, over a project that lasts months rather than a year, on a balance smaller than the loan. Two points on a nine-month project is not two percent a year — annualised it is closer to three, and it lands on top of the note rate. Add an underwriting charge, four draw inspections and an extension and the gap widens further. The note rate prices the time; everything else prices the transaction, and the transaction does not get cheaper because you finished early.

On a drawn-balance loan, interest accrues only on money that has actually been advanced, so the rehab holdback costs you nothing until the draw is released. On a full-loan loan — sometimes called full-boat or Dutch interest — the lender charges on the entire commitment from the day you close, including money still sitting in their account. Same rate sheet, materially different loan. The toggle on this page prices both, and the difference on a normal rehab runs from a few hundred dollars to several thousand — it grows with the size of the holdback and with how long the draws take, so read the panel rather than a rule of thumb.

It depends on how well you bought. Buy at a real discount with a heavy rehab and loan-to-cost binds, because the total cost is low relative to the finished value. Buy near retail, or run a light cosmetic scope on an expensive house, and the loan-to-ARV ceiling binds instead — the lender caps the whole facility regardless of what you paid, and the shortfall becomes down payment. When the ARV cap binds, the fastest fix is usually a lower purchase price, not a bigger rehab budget.

Sometimes, and that is the question to ask before signing rather than at month nine. Some lenders sell a single extension of three or six months for a point; others charge a point per month past maturity, and a few will not extend at all and expect a payoff or a default rate that runs several points above the note. This calculator models one extension charged once. If your term sheet extends in repeating periods, run the calculator again with the charge multiplied by the number of periods you might need.

No — and this page keeps them separate for that reason. Cash to close is what you wire on the day: down payment, points, underwriting and title. Interest, draw charges and any extension arrive over the following months, either as monthly payments or out of an interest reserve the lender withheld from the loan. Both matter, but they hit at different times and a flip usually fails on the second one, not the first. The bottom row of the cash table adds them up so you can see the whole requirement.

No. A rehab holdback is your construction budget, released against completed work. An interest reserve is a slice of the loan the lender keeps to pay your own monthly interest, so you make no payments until it runs out. Reserves are convenient and expensive: the reserved amount is borrowed money, it accrues interest of its own, and when it empties the payments start mid-project. This calculator does not model a reserve, so treat its interest line as cash you pay as it accrues.