Bridge Loans “bridge” the gap between your new home and the sale of your current home.
What to Use Bridge Loans For
Bridge loans are an easy way to fund the down payment on your new home from the equity
of your existing home without selling your current home first. You retain control of your home
and get full value when you sell it. It gives you flexibility in managing your move and allows
you to make a strong purchase offer on your future home. You can also use our Bridge Loan
to make any renovations or repairs to maximize the value of your current home before you
put it on the market. Your cost is the interest on the loan, plus a processing fee. At today’s
low interest rates, the cost of a Bridge Loan pales in comparison to the advantage you would
get by maximizing the value of your current home or being able to submit a more competitive
bid on your new home.
How It Works
You can receive up to 80% of your current home’s value to pay off your existing home loan,
receive cash for the down payment of your next home and up to 6 months of Bridge Loan
payments. You must also have your current home on the market for sale. The total loan
amount (your current mortgage plus the bridge loan) can be no more than 80% of your home
What Are the Payback Terms?
Interest is charged on the loan, but you don’t make any monthly payments while your current
home is being marketed for sale (up to a maximum of 6 months). This allows you to avoid
double mortgage payments. The interest cost is deducted from the proceeds of the sale of
your current home.
Contact me to learn more about a bridge loan or other Real Estate One mortgage solutions in Traverse City and the surrounding Northern Michigan area.
*If the bridge loan is used to improve your
current home, the total loan amount is 75%