Most land lenders quote you a rate. The rate is not the cost. Points, exit fees, minimum interest, and servicing all add up. Enter your loan amount and how long you plan to hold the land, and this calculator shows every dollar on our loan.
Land loan calculator
Interest only, 14% for loans of $100K and up, 16% under $100K. No points. Title and recording costs are extra and set by the title company. This is an estimate, not a loan offer.
How do I use the land loan calculator?
Enter the loan amount and the months you plan to hold the land.
The loan amount is what you borrow, not the purchase price. On a standard deal we lend up to 65% of value with 20% down. The hold period is how long until you sell or refinance. The calculator applies our rate, the 5 month minimum, fees, and servicing, then shows the total cost of the loan.
What does a land loan cost at different sizes?
A 6 month hold costs about 9% to 12% of the loan amount on our program.
| Loan | Rate | Interest, 6 months | Exit fee | Total with $600 closing and $150 servicing |
|---|---|---|---|---|
| $50,000 | 16% | $4,000 | $1,000 | $5,750 |
| $100,000 | 14% | $7,000 | $2,000 | $9,750 |
| $250,000 | 14% | $17,500 | $5,000 | $23,250 |
| $500,000 | 14% | $35,000 | $10,000 | $45,750 |
Rule of thumb: the faster you sell, the cheaper the loan, down to the 5 month minimum.
How is a land loan payment calculated?
Loan amount times the rate, divided by 12. Interest only, no principal until payoff.
On a $100,000 loan at 14%, that is $1,166.67 a month. Your first payment is due 30 days after closing. You pay the principal, the 2% exit fee, and any remaining minimum interest when you pay off. Only the $600 closing fee, plus title and recording, is due at closing.
What is the 5 month minimum interest?
If you pay off early, you still owe 5 months of interest in total.
Pay off in month 3 and you owe months 4 and 5 at payoff. It is not collected up front. If you plan a very quick flip, factor it in. Our loan case studies held 6 to 14 months. See them on our case studies.
What is not in this calculator?
Title, recording, and your own costs of selling.
The title company sets title insurance and recording costs, and they vary by state. Add your listing costs, survey, and taxes to see your real profit. If you want 100% financing, see cross collateral. For full terms, see hard money land loans.
Frequently Asked Questions
How do you calculate the payment on a land loan?
On an interest only land loan, multiply the loan amount by the rate and divide by 12. A $100,000 loan at 14% is $1,166.67 a month.
What does a $100,000 land loan cost?
Held 6 months on our program: $7,000 interest, a $2,000 exit fee, $600 closing, and $150 servicing, about $9,750 total.
Are there points on a Damen Capital land loan?
No. There is a $600 closing fee, a 2% exit fee paid at payoff, and $25 a month servicing.
What is minimum interest on a land loan?
Our loans carry 5 months of minimum interest. If you pay off sooner, the rest is collected at payoff, not at closing.