About Bridge Loans
What is a Bridge Loan?
A bridge loan (also called swing loan or gap financing) is a short-term loan designed to provide temporary cash flow until long-term financing becomes available or an existing property is sold. It's especially popular among:
- • Homebuyers purchasing a new property before selling their current one
- • Real estate investors covering short-term funding gaps
- • Businesses waiting for permanent financing approval
Typical Terms
- • Duration: 6-12 months
- • Higher interest rates than conventional mortgages
- • Interest-only or full repayment options
- • Fast approval process
Repayment Types
Interest Only: Pay only the interest each month, with the full principal due at the end of the term.
Full Repayment: Pay both principal and interest each month, similar to a traditional mortgage.
Why U.S. Homeowners Use Bridge Loans
- • To buy before selling – avoid missing out on your dream home
- • Fast approval – bridge loans can close within days compared to traditional mortgages
- • Flexible repayment – many lenders allow interest-only payments during the loan term
- • Nationwide availability – offered by U.S. lenders such as Nationwide, Bank of America, Chase
Advantages of Using a Bridge Loan Calculator
- • Understand your borrowing costs before applying
- • Compare different loan terms and rates
- • Plan your cash flow and repayment strategy
- • Avoid unexpected financial strain
By adjusting inputs like loan amount and interest rate, users can simulate multiple loan scenarios to make informed financial decisions.