Niche Loan Calculator — Bridge Loan & Hard Money Loan

Calculate interest-only payments, points cost, and total cost for bridge loans and hard money loans — short-term, asset-based real estate financing.

July 9, 2026

Loan Amount ($)

Interest Rate (% annual)

Typical range ≈7.75%–12.5%

Term (months)

Typical range 6–24 months (12 most common)

Points / Origination Fee (%)

Typical range 2–4 points

Monthly Interest-Only Payment

$2,375.00/mo

$28,500.00 total interest over 12 months

Points Cost (Upfront)

$7,500.00

Total Cost (Interest + Points)

$36,000.00

Balloon repayment due at term end: this is an interest-only loan, so none of the $300,000.00 principal is paid down during the term. The full $300,000.00 is due as a lump sum when the loan matures — typically repaid from the sale of a property, a refinance, or another exit strategy lined up before the term ends.

Monthly interest-only payment = Loan Amount × (Annual Rate ÷ 12). Points cost = Loan Amount × Points%. Total interest over the term = monthly payment × number of months. Total cost = total interest + points cost, not including the principal balloon repayment due at maturity. Bridge loans and hard money loans are both short-term, asset-based real estate financing distinct from a conventional amortizing mortgage — actual rates, terms, and points vary by lender, property, loan-to-value, and borrower experience, so treat these figures as planning estimates rather than a loan offer.

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Reference Values

Last verified: Jul 8, 2026

Category	Range	What It Means	Status
Bridge loan — typical term	6–24 months (12 months most common)	Short-term financing used to bridge purchasing a new property before an existing one sells. Most bridge loans default to a 12-month term unless the borrower's timeline is known to be shorter or longer.	Good
Bridge loan — typical rate	≈7.75%–12.5% (2026)	Rates run well above a conventional mortgage because the loan is short-term and often funded faster, with less time for the lender to spread underwriting risk.	Good
Bridge loan — typical points/origination fee	2–4 points	Upfront fee charged as a percentage of the loan amount, paid at closing in addition to the interest rate.	Good
Bridge loan — payment structure	Interest-only	Most bridge loans require interest-only payments during the term, with the full principal due at maturity — typically repaid from the sale proceeds of the borrower's existing property.	Okay
Hard money loan — typical term	6–24 months (some lenders up to 36 months)	Short-term, asset-based financing commonly used by real estate investors for fix-and-flip or rehab projects, sized to the project's expected completion and resale or refinance timeline.	Okay
Hard money loan — typical rate	≈11%–18% annually	Priced well above bridge loans because approval is driven primarily by the collateral property's value (loan-to-value) rather than the borrower's credit profile, which raises the lender's risk premium.	Okay
Hard money loan — typical points	2–4 points (range 1–5)	Origination points tend to track the lender's perceived project risk — a straightforward rehab with strong resale comps typically lands at the lower end of the range.	Okay
Hard money loan — approval basis	Asset-based (LTV/collateral-driven)	Approval hinges primarily on the property's after-repair value and loan-to-value ratio rather than income documentation or credit score, which is why funding can close much faster than a conventional loan.	Okay

Source: Rocket Mortgage — "Bridge Loan Vs. Hard Money Loan: What's The Difference?"; Gelt Financial — "Bridge Loans vs Hard Money Loans (2026)"; Biz2Credit — bridge loan rates and terms page. Rate, term, and points ranges are illustrative market ranges aggregated across multiple private/bridge lenders — actual quotes vary by lender, property type, loan-to-value, and borrower experience.

Worked Examples

Bridge Loan — Buying Before Selling

Loan Type: Bridge Loan
Loan Amount: $300,000
Rate: 9.5%
Term: 12 months
Points: 2%

$2,375.00/mo interest-only

Monthly interest = 300,000 × (0.095 ÷ 12) = $2,375.00. Over 12 months that's $28,500 total interest, plus a $6,000 upfront points cost (300,000 × 2%) — $34,500 total cost before the full $300,000 principal balloon comes due at month 12, typically repaid from the sale of the borrower's existing home.

Hard Money Loan — Fix-and-Flip

Loan Type: Hard Money Loan
Loan Amount: $200,000
Rate: 12%
Term: 9 months
Points: 3%

$2,000.00/mo interest-only

Monthly interest = 200,000 × (0.12 ÷ 12) = $2,000.00. Over 9 months that's $18,000 total interest, plus a $6,000 points cost (200,000 × 3%) — $24,000 total cost, with the $200,000 principal due at the 9-month mark, typically repaid via refinance or resale of the rehabbed property.

Bridge Loan — Short 6-Month Timeline

Loan Type: Bridge Loan
Loan Amount: $150,000
Rate: 8%
Term: 6 months
Points: 2%

$1,000.00/mo interest-only

Monthly interest = 150,000 × (0.08 ÷ 12) = $1,000.00. Over 6 months that's $6,000 total interest, plus a $3,000 points cost (150,000 × 2%) — $9,000 total cost. A shorter, lower-rate bridge loan like this is realistic when the borrower's existing home is already under contract and closing soon.

Hard Money Loan — Larger Rehab Project

Loan Type: Hard Money Loan
Loan Amount: $500,000
Rate: 14%
Term: 12 months
Points: 4%

$5,833.33/mo interest-only

Monthly interest = 500,000 × (0.14 ÷ 12) = $5,833.33. Over 12 months that's $70,000 total interest, plus a $20,000 points cost (500,000 × 4%) — $90,000 total cost at the higher end of the hard money rate/points range, illustrating why a fast exit (sale or refinance) is critical to controlling total cost on a larger loan.

Hard Money Loan — Extended 18-Month Rehab

Loan Type: Hard Money Loan
Loan Amount: $250,000
Rate: 11%
Term: 18 months
Points: 2.5%

$2,291.67/mo interest-only

Monthly interest = 250,000 × (0.11 ÷ 12) = $2,291.67. Over 18 months that's $41,250 total interest, plus a $6,250 points cost (250,000 × 2.5%) — $47,500 total cost. At 18 months this sits near the upper end of a typical hard money term, so borrowers this far out should confirm their lender allows extensions if the rehab or resale timeline slips.

How to Use This Calculator

1

Choose Bridge Loan or Hard Money Loan

Each tab has its own inputs and typical rate/term/points ranges, since the two loan types are priced differently.
2

Enter the loan amount

The amount you're financing — for a bridge loan this is often tied to your existing home's equity; for a hard money loan it's typically the purchase price plus rehab budget.
3

Enter the interest rate and term

Bridge loans typically run ≈7.75%–12.5% over 6–24 months (12 months most common). Hard money loans typically run ≈11%–18% over 6–24 months (some lenders allow up to 36).
4

Enter the points (origination fee)

Both loan types commonly charge 2–4 points upfront, paid as a percentage of the loan amount at closing.
5

Read your results

See the monthly interest-only payment, upfront points cost, total interest over the full term, total cost, and the full principal balloon repayment due when the loan matures.

What Each Value Means

Monthly Interest-Only Payment ($/month): The monthly amount due on an interest-only loan — Loan Amount × (Annual Rate ÷ 12) — with none of the principal paid down during the term.
Points Cost ($): An upfront origination fee charged as a percentage of the loan amount, paid at closing in addition to the interest rate.
Balloon Repayment ($): The full remaining principal balance due as a single lump-sum payment when an interest-only loan reaches the end of its term.

Frequently Asked Questions

Why are bridge loans and hard money loans interest-only with a balloon payment?

Both loan types are designed to be short-term bridges to an exit event, not long-term amortizing debt. A bridge loan expects the borrower to repay the full principal from the sale of their existing property; a hard money loan expects repayment from a property sale, refinance, or completed rehab project. Since the lender expects a lump-sum payoff within months rather than years, monthly payments only cover interest — the entire principal balance comes due as a single "balloon" payment at the end of the term. This calculator flags that balloon amount clearly so you don't mistake the monthly interest-only figure for a fully amortizing payment.

What's the actual difference between a bridge loan and a hard money loan?

A bridge loan is typically used by a homeowner or buyer who needs to close on a new property before their existing one sells — it's usually collateralized by the borrower's current home equity and priced closer to conventional financing (roughly 7.75%–12.5%). A hard money loan is typically used by real estate investors for fix-and-flip or rehab projects, is approved primarily on the collateral property's value and loan-to-value ratio rather than the borrower's credit, and carries a higher rate (roughly 11%–18%) to compensate the lender for that reduced underwriting scrutiny and faster closing timeline. Both are short-term and asset-based, but the borrower profile and typical use case differ.

How many points do bridge loans and hard money loans typically charge?

Both loan types commonly charge 2 to 4 origination points, paid upfront at closing as a percentage of the loan amount — a $200,000 loan at 3 points costs $6,000 upfront on top of the interest rate. Hard money loans can range slightly wider, from 1 to 5 points, depending on the lender's assessment of the project's risk. Points are separate from the interest rate and factor into the true total cost of the loan, especially on shorter terms where the upfront points make up a larger share of total borrowing cost.

Can I pay off a bridge loan or hard money loan early?

Most bridge and hard money loans allow early payoff, and because they're interest-only, paying off early usually just means you owe interest for fewer months plus the outstanding principal — there's often no long-term amortization schedule to disrupt. That said, some lenders include a minimum interest guarantee (charging for a set number of months regardless of when you pay off) or a prepayment penalty, so always confirm the specific loan's terms before assuming an early exit saves the full remaining interest.

Is this calculator a loan offer or pre-approval?

No. This tool estimates interest-only payments, points cost, and total cost based on the numbers you enter — it doesn't reflect any specific lender's underwriting, credit requirements, or actual quoted rate. Bridge and hard money rates, terms, and points vary significantly by lender, property type, loan-to-value ratio, and borrower experience, so treat these results as a planning estimate and get quotes from multiple lenders before committing to either loan type.