Posts from September 19th, 2022
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Buying and Selling a House: Bridge the Gap
When you move from one home to another, there are always bumps in the road. Sometimes, the road goes out, and you need a bridge to get to the other side. Bridge loans are short-term loans that give you access to cash that you can use to make the transition a little smoother. Our real estate agents often help clients who use bridge loans to pay off existing debts, finance their new home, and other things. There are advantages and disadvantages to bridge loans, and buyers should fully understand the benefits and drawbacks involved before applying for the loan.
Bridge Loan Basics
Bridge loans are short-term, with most having repayment periods of between six to 12 months, but some can extend to two or three years. These loans are typically used by homeowners who wish to purchase a new home before their current home is sold. Homeowners can tap into their equity to secure a down payment, remodel the home they want to purchase, and cover expenses until the house sells.