![]() |
Save Time With a Bridge LoanWhy You Need a Bridge Loan You have to move fast in today's housing market if you want to get into the home of your dreams. In cities such as Seattle or San Francisco it's not uncommon for a buyer to receive half a dozen offers within the first day or two after putting the house on the market. Unless you have enough excess income to buy a second home without selling your current abode, you will have to play the timing game; finding a home to purchase while finding a buyer for your own. This can be especially sticky if you are buying in an area with a hotter market than the one you're leaving. Most sellers won't be willing to accept 'contingent' offers (you buying their home is 'contingent' on you selling your home) because of the overwhelming demand in the area manifest by the numerous potential buyers beating down their door. Under these competitive conditions, a bridge loan may be just what you need to avoid missing out on a time sensitive real estate purchase. Not sure how to go about securing a bridge loan? Eventually you'll go through a bank or private lender to get a bridge loan, but it pays to know the basics before you set foot into the local loan office. Bridge Loan Basics Strictly defined, a bridge loan is a form of second trust that is collateralized by your present home in a manner that allows the proceeds to be used for closing on a new house before the old house is sold. The fact that you are not immediately required to sell your old home makes a bridge loan the logical solution for people in relatively cold markets who need to act quickly in order to close on a new home. Most people who get a bridge loan will use the extra cash to pay off the mortgage on the old home, deduct any closing costs and prepaid interest, and put the remainder towards a down payment on the new home. A bridge loan entails substantial risk for the lender because the old home may not sell for some time. Therefore, you can expect relatively high interest rates and short terms of six months to a year. The borrower usually begins making interest payments after the end of the term if the old house still hasn't sold. After the old home sells, the bridge loan is paid off. If the house sells within the term limit, all unearned interest is credited back to the borrower. Get Professional Bridge Loan Advice Before you sign on any dotted lines, make sure the lender you're working with has taken all the time you need to explain bridge loan details to your satisfaction. Depending on your individual situation, securing a bridge loan can be somewhat complicated. Having a relationship of trust with your lender can help simplify the process. Cameron Brown in an internet marketer specializing in investment property. For more information about how a bridge loan can benefit you, please visit SNC.
What are the hidden costs of refinancing a mortgage? Fox Business How a mortgage refinance affects your net worth Fox Business 3 Mortgage Refinance Strategies to Consider in 2021 The Motley Fool Mortgage refinance rates continue hitting record lows – here’s how to get the best deal now Fox Business What Is A Debt Consolidation Refinance? | Pros And Cons The Mortgage Reports Can you refinance a mortgage while in forbearance? Fox Business Racked Up Holiday Debt? Refinancing Could Help You Pay It Off The Motley Fool Black Knight Delivers Next Generation of its Loansifter Product, Pricing and Eligibility Engine for Mortgage Brokers Yahoo Finance 3 Options for Financing Home Improvements in 2021 The Motley Fool Can You Refinance A USDA Loan? | USDA Refi Options The Mortgage Reports PropertyGuru Tackles Top Home Loan Refinancing Misconceptions Among Singaporeans in New Research Taiwan News Mortgage refinance: Everything you need to know Fox Business Buying a Second Home: What to Do and How Much It Costs Credible News How to refinance your mortgage Fox Business How to decide if you should refinance your mortgage Fox Business Who's exempt from the new mortgage refinance fee? Fox Business Everything You Should Know About The New Mortgage Refinancing Fee That Goes Into Effect Dec. 1 Forbes Today’s mortgage refinance rates hold steady for third consecutive day | December 11, 2020 Fox Business Today’s mortgage refinance rates mixed — one key rate drops while two hold steady | December 15, 2020 Fox Business How do I get the most out of my mortgage refinance? Fox Business 4 ways to get lower mortgage refinance rates Fox Business 10 things to know before refinancing your mortgage Fox Business The best mortgage refinance lenders of January 2021 Business Insider Refinancing your mortgage? Don’t make this mistake Fox Business Today's mortgage refinance rates stay low with the election underway | November 3, 2020 Fox Business Today’s mortgage refinance rates climb upward — though one key rate holds steady | October 23, 2020 Fox Business Complete Checklist of Mortgage Refinancing Requirements Credible News 10 tips for getting the best mortgage refinance rates Business Insider How often can you refinance your mortgage? Fox Business How to refinance your mortgage without closing costs Fox Business Thinking of refinancing your mortgage? Do your homework before you jump in. The Philadelphia Inquirer When should you refinance your mortgage? Fox Business Today's mortgage refinance rates hold steady at unprecedented lows | October 16, 2020 - Fox Business Is now a good time to refinance your mortgage? Fox Business How to get a low-cost mortgage refinance Bankrate.com How to Refinance Your Home | Home Lending Chase News & Stories How much can you save by refinancing your mortgage? Fox Business Mortgage refinancing is about to get more expensive Pittsburgh Post-Gazette No-Closing-Cost Refinance: Is It Right for You? NextAdvisor
|