How does a bridge loan work? Are you making double mortgage payments until your house sells?
Dona P asked:
or just paying interest on the bridge?
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or just paying interest on the bridge?
February 20th, 2009 at 8:18 pm
Bridge loans are granted if you have a home you are selling has equity, depending on the value, usually 80% of the equity. Example: Home being valued @ $100.000.00, Balance owed $50,000.00 Bridge loan 80% of %50,000.00 = $40,000.00. Term payment is usually based on 30 yr fixed equity loan peramenters. 6 mos. is the usual term, with an extention of and addittional 6 mos. if required. You will be making monthly pmts. on the bridge until your home sells. And @ the present equity loan rate. Bridge loans are invoked to help the cust. pay for closing cost, down pmt. on his new purchase. ( Please Note), you must qualify for the loan with all monthly debt, and they have a ballon note, with a lein applied to selling property. Hope this helps, Good Luck!
February 23rd, 2009 at 8:29 am
Bridge loans are for those who have loads of equity on a home they plan to sell…If your buying second home “The bridge is a fee for specific time to sell that first home”..If you fail to sell the first home within that time frame,the bank will offer you another bridge at times..or you may be stuck with two mortgages..
February 26th, 2009 at 2:11 pm
If you’re in San Fransisco and you met a guy in a white suit named Jorge and he speaks with a heavy Cuban accent….. run away! He’s been trying to get people qualified to buy the Golden Gate Bridge since the 80’s!