True Cost Calculator
See the real total cost of each loan: origination, interest carry, draw fees, extension penalties, and prepayment charges.
How the True Cost Calculator Works
For each lender, the tool calculates the total cost of capital over your holding period. It starts with origination points and flat fees paid at closing. Then it adds monthly interest carry for your entire hold (interest-only or amortizing). Extension fees get layered in if you exceed the initial term. Rehab draw fees are calculated as a percentage of each disbursement. Prepayment penalties apply if you exit early. The result is a single dollar figure that represents the true cost of borrowing from each lender.
- Origination cost: points as a percentage of loan amount plus flat origination fee
- Interest carry: monthly payment multiplied by holding period months
- Extension modeling: monthly extension fee added for each month past the initial term
- Draw fees: percentage-based fee on rehab fund disbursements
Why the Cheapest Rate Is Not the Cheapest Loan
A lender offering 9% interest with 3 origination points charges $6,000 in points on a $200,000 loan. A lender at 12% with 1 point charges $2,000 in points. On a 6-month hold, the 9% lender costs $15,000 total ($6,000 points + $9,000 interest) while the 12% lender costs $14,000 ($2,000 points + $12,000 interest). The "higher rate" lender is $1,000 cheaper. The true cost calculator reveals these crossovers so you pick the lender that actually saves you money.
- High-point / low-rate loans cost more on short holds
- Low-point / high-rate loans cost more on long holds
- Extension fees can double the cost if your flip timeline slips
- Draw fees on rehab funds add thousands that never appear on the rate sheet
Sample Output
See what this feature calculates for you.
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