Bridge LoanCalculator
Calculate your bridge loan costs and payments instantly. Make informed decisions when buying a new property before selling your current one.
Bridge Loan Calculator
Estimate your bridge loan costs and payments to make informed financial decisions
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Understanding Bridge Loans
Bridge loans provide temporary financing to help you purchase a new property before selling your existing one. Learn how they work and if they're right for you.
What is a Bridge Loan?
A bridge loan is a short-term financing option that helps homeowners "bridge the gap" between selling their current property and buying a new one. This loan uses the equity in your current home to help finance the down payment on your new property.
How Do Bridge Loans Work?
Bridge loans typically finance up to 80% of the combined value of both properties. They're usually structured as interest-only loans with a balloon payment due at the end of the term, which is typically when you sell your current home.
Terms and Duration
Most bridge loans have terms ranging from 3 to 12 months. They're designed to be short-term solutions until your existing property sells. Interest rates for bridge loans are typically higher than conventional mortgages, usually 2-3% above prime rate.
Costs and Fees
Bridge loans typically come with higher interest rates than traditional mortgages. Additional costs may include:
- • Origination fees (1-3% of loan amount)
- • Administration fees
- • Appraisal costs
- • Title insurance
- • Escrow fees
Benefits of Bridge Loans
- ✓Buy a new home without having sold your current one
- ✓Avoid contingent offers that may be less attractive to sellers
- ✓Eliminate the need for temporary housing between homes
- ✓Quick approval and funding process
Who Should Consider a Bridge Loan?
Bridge loans are ideal for:
- • Homeowners who find their dream home before selling their current one
- • Real estate investors looking to quickly acquire and renovate properties
- • Buyers in competitive markets where contingent offers are less likely to be accepted
- • Those with significant equity in their current home
- • Individuals who need to relocate quickly for work or personal reasons
Important Considerations
Things to keep in mind before taking a bridge loan
- !Higher interest rates and fees compared to traditional mortgages
- !Risk if your current home doesn't sell before the bridge loan term ends
- !You'll temporarily be responsible for two mortgages plus the bridge loan
- !Qualification typically requires good credit and significant equity
Want to Learn More About Bridge Loans?
Explore our comprehensive guides to gain deeper insights into bridge loans, financing options, and real estate strategies.
Browse All GuidesWhat Our Users Say
Real people who used our calculator to make informed bridge loan decisions
Michael R.
Homeowner
"This calculator helped me understand exactly what to expect with a bridge loan. It made a complex financial decision much clearer, and I was able to confidently move forward with buying my new home before selling my current one."
Jennifer L.
Real Estate Investor
"As a real estate investor, I use this calculator frequently to quickly estimate bridge loan costs for different properties. The detailed breakdown of costs and payments helps me determine if a deal makes financial sense."
David & Sarah T.
Growing Family
"With a baby on the way, we needed a larger home quickly. This calculator helped us understand if a bridge loan was feasible for our situation. The clear results and educational information gave us the confidence to proceed."
Frequently Asked Questions
Common questions about bridge loans and our calculator
Ready to Calculate Your Bridge Loan?
Use our free calculator to get a clear picture of your potential bridge loan costs and payments.