How much can I borrow with a bridge loan?

Bridge loan amounts typically range from 80% to 90% of your current home's equity. The exact amount depends on your current home value, existing mortgage balance, and the lender's requirements.

What are bridge loan interest rates?

Bridge loan interest rates are typically 1.5% to 3% higher than traditional mortgage rates, ranging from 8% to 12% or more. Rates vary based on credit score, loan amount, and lender policies.

How long is a typical bridge loan term?

Bridge loans are short-term, usually lasting 6 to 12 months. Some lenders may offer terms up to 2-3 years. The loan is typically repaid when your current home sells.

Bridge Loan Calculator

Calculate bridge loan costs when buying a new home before selling your current one.

Bridge the Gap Between Homes

A bridge loan provides short-term financing to help you buy your new home before your current home sells

Current Home Details

Current Home Value ($) Estimated market value

Current Mortgage Balance ($) Remaining loan balance

New Home Details

New Home Purchase Price ($) Price of new home

Down Payment Required (%) Percentage for new home

Bridge Loan Terms

Bridge Loan Interest Rate (%) Annual interest rate

Bridge Loan Term (Months) Expected time to sell current home

Origination Fee (%) Upfront lender fee

Other Closing Costs ($) Appraisal, title, etc.

Bridge Loan Analysis

🏠

Current Home

$450,000

Equity: $250,000

→ Bridge

🏡

New Home

$550,000

Down Payment: $110,000

Bridge Loan Summary

$0 Loan Amount

$0 Monthly Payment

$0 Total Interest

$0 Total Cost

Interest-Only Payment COMMON

Pay only interest during the loan term. Principal due at end.

Fully Amortized Payment

Pay principal + interest monthly. Higher payments, lower total cost.

Current Home Equity Breakdown

Mortgage

Equity

Mortgage (44%)

Equity (56%)

Complete Cost Breakdown

Bridge Loan Principal $0

Total Interest (6 months) $0

Origination Fee $0

Other Closing Costs $0

Total Bridge Loan Cost $0

Typical Bridge Loan Timeline

Apply for
Bridge Loan

Get Approved
& Close

Buy New
Home

Sell Current
Home

Repay Bridge
Loan

Important Considerations

Bridge loans carry higher interest rates and fees than traditional mortgages. If your current home doesn't sell within the loan term, you may face additional costs or need to extend the loan. Consider having a contingency plan and consult with a financial advisor.

Understanding Bridge Loans

What is a Bridge Loan?

A bridge loan is short-term financing that helps homeowners "bridge" the gap between purchasing a new home and selling their current one. It provides funds for a down payment or full purchase of the new property while waiting for the old home to sell.

How Bridge Loans Work

Application: Apply with your current home as collateral
Approval: Lender assesses equity and creditworthiness
Funding: Receive funds for new home down payment
Repayment: Pay back when current home sells

Bridge Loan Costs

Interest Rate: Typically 8-12% (higher than mortgages)
Origination Fee: 1-3% of loan amount
Closing Costs: Appraisal, title, admin fees
Monthly Payments: Interest-only or fully amortized

Bridge Loan vs. HELOC

Bridge Loan: Lump sum, fixed term, quick closing
HELOC: Credit line, variable rate, longer approval
Bridge loans close faster (1-2 weeks vs 4-6 weeks)
HELOCs typically have lower rates but stricter requirements

Who Should Consider a Bridge Loan?

Found your dream home but haven't sold current home
Need to move quickly (job relocation, school district)
Have significant equity in current home
Confident current home will sell within loan term
Can afford temporary higher monthly payments

Alternatives to Bridge Loans

Sell First: Sell current home before buying new one
HELOC: Home equity line of credit
401(k) Loan: Borrow from retirement funds
Contingent Offer: Make offer contingent on sale
Gift Funds: Family gift for down payment