As the global bond sell-off nudges mortgage rates upward, you may be wondering how this impacts the investor rates we offer. As private lenders, we have a lot more leeway than traditional banks to set our own rates. We make every effort to keep these rates as competitive as possible so that our clients can continue to turn a profit.
But what if we told you that you have the power to reduce your financing costs even further?
How? By choosing our non-Dutch interest option, when available.
Maximizing profits on your next flip means holding down expenses, and that includes financing costs. NavCap's non-Dutch interest option does exactly that: it lowers your monthly interest payments so more stays in your pocket.
What is non-Dutch interest, and why does it matter?
Most fix-and-flip loans have two pieces: the purchase price and the repair budget. There are two interest methods that treat repair money differently.
- Dutch interest charges you interest on the full repair budget starting on day one, even though you haven't drawn the funds yet.
- Non-Dutch interest only charges interest on repair funds as they're actually disbursed to you.
That difference adds up fast. And for ground-up construction loans, it adds up even faster. For repair budgets above a certain threshold, NavCap builds loan packages using the non-Dutch method as standard. Not every lender does this, so it's worth comparing before you sign.
Let's talk
Financial success for our clients is the whole point of what we do, and non-Dutch financing is one more way we help make that happen. Reach out and we'll put together a loan package built around your project.
📞 888.444.3160 ✉️ info@gonavcap.com 🔗 Get a no-obligation quote