What is a bridge loan? A bridge loan is basically a short-term loan that a homeowner can use to bridge the gap between two transactions typically the buying of one house and the selling of another. Bridge loans are temporary in nature usually with maximum terms of 6 to 12 months. Bridge loans are typically more expensive than conventional financing with interest rates, roughly two percent higher than the average fixed-rate mortgages.
Read Also: What Is a Seller’s Disclosure?
They can also include other costs are fees determined by the lender. Lenders usually make bridge loans with the assumption that they will also be providing the long-term mortgage on the new home.
So what are the benefits of this loan? Well, for the most part, it enables the buyer to make an offer on a new home without there being an offer subject to the sale of their existing home.
Watch the video below:
Subscribe to our YouTube Channel for more Real Estate Free Reports
One of the reasons to call the Agardi Team if you want to buy a home or have one to sell is:
Not only do we sell our clients’ homes for more money and faster than the average area agent, but your home is also more likely to sell. According to 2015 MLS statistics, only 71% of area homes sold during their listing term. Compare that to our 95% of homes listed that sold before the end of the listing term. YOUR HOME SOLD GUARANTEED OR WE’LL BUY IT*
To discuss the sale of your home, call The Agardi Team at 718-755-2882 and start packing!
*Agardi Team and the seller have to agree on the price and the closing date.
