Bridge Loan Calculator

Calculate monthly interest, upfront costs, and total expenses for bridge loans.

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Bridge Loan Formulas: Monthly Interest Payment = Loan Amount * (APR / 12) (Interest-only payment; no principal) Origination Fee = Loan Amount * (Fee % / 100) Total Upfront Costs = Origination Fee + Closing Costs Total Interest = Monthly Interest * Loan Term (months) Total Bridge Loan Cost = Upfront Costs + Total Interest Payoff Amount = Loan Amount + Total Interest + Upfront Costs
Example: Bridge Loan Amount: $200,000 APR: 8.5% Term: 6 months Origination Fee: 2% Closing Costs: $1,000 Existing Mortgage: $1,500/month Monthly Interest = $200,000 * 0.085 / 12 = $1,417 Origination Fee = $200,000 * 0.02 = $4,000 Upfront Costs = $4,000 + $1,000 = $5,000 Total Interest (6 mo.) = $1,417 * 6 = $8,500 Total Cost = $5,000 + $8,500 = $13,500 Monthly Obligation = $1,417 + $1,500 = $2,917

What is a bridge loan?

A bridge loan is short-term financing used to "bridge" the gap between buying a new property and selling your current one. Terms typically range from 6-12 months with higher interest rates than traditional mortgages.

When should I use a bridge loan?

Use a bridge loan when you need to buy a new home before selling your current one, for time-sensitive purchases, or when traditional financing timing doesn't work. Common in competitive real estate markets.

How do bridge loans work?

Bridge loans use your current home as collateral. You typically make interest-only payments during the loan term, then pay off the full balance when your old home sells or you secure permanent financing.

What are typical bridge loan costs?

Bridge loans typically charge 6-10% interest rates plus 1.5-3% in origination fees. They're more expensive than traditional mortgages due to higher risk and short-term nature.

What are the risks of bridge loans?

Main risk: your old home doesn't sell in time, requiring loan extension (with fees) or refinancing. You may also carry two mortgages temporarily. Ensure you can afford both payments if needed.