Finance
A Pennsylvania investor who purchases a property using a 'hard money' lender typically refinances to conventional financing because:
AHard money loans are required to be refinanced within 90 days
BHard money loans have high interest rates and short terms — refinancing to lower-rate permanent financing reduces carrying costs✓ Correct
CPREC requires hard money loans to be refinanced annually
DHard money lenders always require refinancing as a loan condition
Explanation
Hard money loans have high rates (often 10–15%+) and short terms (6–24 months), making them expensive for long-term holding. Investors use them for quick acquisitions or renovations (fix-and-flip), then refinance to conventional or portfolio loans with lower rates once the property stabilizes or the renovation is complete.
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