| This article will explore the bridge mortgage and | | | | new mortgage, and bridge loan payment. If you are |
| whether or not such a loan is appropriate for you. The | | | | unable to make all these payments successfully, you |
| bridge mortgage, also called a bridge loan, serves as a | | | | might end up having valuable real estate repossessed |
| way to transition from one home to another. Let's say | | | | by the lender. |
| you are considering selling your home but before you | | | | Therefore, you should pursue other options before |
| do, you find your perfect dream home offered at a | | | | deciding on a bridge loan. You could try to get a home |
| price you can't refuse. | | | | equity loan based on the equity you've accumulated in |
| What can you do? Well, you could get a bridge loan to | | | | your present home. If you are unable to do that, you |
| cover the costs of buying the new home, and when | | | | might be able to borrow money from a bank using |
| you sell your old home you could pay off the | | | | your vehicle as collateral. You could even consider |
| mortgage and the loan. As you can see, this type of | | | | borrowing money from family or friends to use for the |
| loan can be both helpful and risky at the same time. | | | | transition from one home to another. |
| A bridge mortgage is traditionally only taken out for a | | | | Any of these options is going to cost you less than a |
| short term, usually around six months. The interest | | | | bridge mortgage. If you are set on getting a bridge |
| rates for such a loan can range up to 15 percent, | | | | loan, you can find out more about this type of loan and |
| making it an expensive way to borrow money. | | | | apply at your local bank, credit union or mortgage |
| Investors can make a nice profit by offering bridge | | | | lender. Comparison shopping is important because you |
| loans. The risk comes if you are unable to sell your old | | | | may be able to save some money by going with the |
| home as fast as you need to. The worst case | | | | cheapest lender. |
| scenario is that you'll get stuck with your old mortgage, | | | | |