Loans
Bridge Loan
A short-term loan that helps homeowners finance the purchase of a new home before selling their current one. Bridge loans typically have terms of six months to one year and higher interest rates than traditional mortgages. They can be helpful in competitive markets where you need to make an offer quickly, but they carry risk if your current home takes longer to sell than expected.
Why It Matters
Understanding Bridge Loan is a key part of choosing the right mortgage. The type of loan you select affects your monthly payment, how much interest you pay over the life of the loan, and how much flexibility you have if your financial situation changes.
When comparing loan options, pay attention to how bridge loan fits into the bigger picture of your borrowing costs. A knowledgeable loan officer or mortgage broker can help you evaluate whether this option aligns with your financial goals and timeline.