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What Is Bridge Financing?

Bridge loans can help homebuyers purchase a new home in a fast-moving market before they close the sale of their existing home.


[Updated: Jul 29, 2021 ] Jan 28, 2020 by Matthew DiLallo

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Charles Clinton explains what bridge funding is and how it works on the Millionacres Podcast
 
Bridge loans Bridge loan closing costs Bridge loan rates Total costs
$100,000 bridge loan (low assumptions of 1.5% total closing costs and the prime rate) 1.5% of the total 4.75% $ 6,250.00
$100,000 bridge loan (high assumptions of 3% closing costs and the prime rate plus 2%) 3% of the total 6.75% $ 9,750.00

Data source: Bankrate and author's calculations. Prime rate as of January 26, 2020.

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