Mortgage and Refinancing Information Channel:

We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
 Please check back frequently as new topics are added and current topics are updated daily.

Save Time With a Bridge Loan

Why 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.

MORE RESOURCES

used office furnishings-supplies-equipment-desks-cubicles-service-counters for sale in Akron Ohio   Die cast model cars for sale in Akron Ohio  
used cars for sale in Akron Ohio   unfurnished homes for rent in Akron Ohio

RELATED MORTGAGE AND REFINANCING ARTICLES: What to Really Expect for Closing Costs Closing on a property is a very challenging time for a would-be homeowner. Being informed, either through your mortgage broker, your real estate agent, or through self knowledge is the best thing you can be when going through this procedure. How Not To Be Ripped Off By Mortgage Brokers One of the things that bothers me about the mortgage industry is the number of unscrupulous brokers that operate in this market. Talk about giving the industry a bad name! I worked for a mortgage lender until quite recently and I used to be shocked at the fees that brokers charged their clients. Home Loans: What You Should Know! Finding home loans can be a daunting task, whether you're a first time home buyer or an existing homeowner. The good news is that there are more options than ever to help you find the loan that's right for you. How To Find A Mortgage With Bad Credit Shopping online for mortgages ought to be trouble free, even should you have poor credit or no credit score. You can nonetheless find a bad credit lender that can facilitate you. What Are Mortgage Brokers And Why To Use One "Mortgage" is formed from two words: the French word "mort" meaning "dead" and the word "gage" from Old English meaning "pledge". Sir Edward Coke (who lived from 1552 to 1634) explained the term: the land as considered "dead" to the mortgagor, as if the person never had it. Kippers or Red Herrings? Recent news has made much of parents stretching their finances to cover costs for their twenty and thirty something children. Debts and high property prices have forced many offspring to return home, tail between legs, under the attractive new marketing term of "kippers": kids in parents' pockets eroding retirement savings. What is an Interest Only Mortgage? An Interest Only Mortgage is one where the repayments are made up entirely of the interest on the loan. When the mortgage term is complete, the capital originally borrowed is still outstanding. California Refinance - Refinancing in California The real estate market in California is booming. Home values continue to appreciate almost on a daily basis. Mortgage: Effective Household Investment for Financial Autonomy If finances had a copyright, we would have bought it by now. But it is hardly sold anywhere near the place we live. Refinancing After Bankruptcy Refinancing after a bankruptcy can seem like an especially difficult challenge, but it doesn't have to be. Six months after your bankruptcy has been finalized, you can find lenders willing to refinance your mortgage. Build Your Own Dream House! So you're thinking about building your own house, are you? Well, you've come to the right place! It's a lot of fun (hard work and eventually fun!) to build your own home and it will save you thousands of dollars. we saved over a Hundred Grand by doing it ourselves - that's pretty significant cash!). If you happen to live in a Large City, like Los Angeles, or anywhere that Real Estate Values are 'close-to-insane', you could potentially save millions of dollars. 2nd Mortgage - Better Than Refinancing You have probably received refinancing offers in the mail or advertised online touting your ability to pull out your home's equity. But a 2nd mortgage, also called an equity loan, may be a better financing option than refinancing your mortgage. Using a Calculator to Assess Your Loan Buying a house is a very important step in your life. Every family dreams of having their own home and whether you are looking into your first, or are moving or upgrading your home, you know your mortgage is important. Zero Down Mortgage Loans - Is 100% Financing a Good Idea and Can You Get Approved? Are you wondering if you can get approved for a home loan with 100% financing? Are you also wondering if its a good idea to get a mortgage loan with no money down? Here are some points to keep in mind as you apply and consider your different mortgage loan options.To qualify for 100% financing on a purchase mortgage loan, it would be important for you to have a credit score of at least 600 or higher. When is the Right Time to Refinance Your Mortgage? You've heard that interest rates are down and you think it could be time to refinance your existing mortgage, but the entire loan application process was so exhausting during the initial loan that you aren't sure it's worth the hassle. You could very well be right, but there are some things you can do to help decide whether it's time to refinance your mortgage. Bad Credit Home Loans - Dealing With Bad Credit Mortgage Companies Online Dealing with mortgage companies online can enable you to get a home loan even with bad credit. Bank associates' skepticism and talk around are avoided when you apply online with a mortgage broker. Buying a New Home - Home Buying Tips If you in the process of looking for your first home, there are some essential steps that you should be aware of. Many times, people fall in love with a home and rush into the deal-not considering some important issues. Reaping Financial Rewards - Bad Credit Home Equity Loans Home is the place you inhabit. It is the place where you live, breathe, grow, thrive. Shopping for A Mortgage? Do Your Homework First If you happen to be shopping around for a mortgage, it is very important that you first take the necessary time to do your homework. When I say homework, I am talking about research. What You Don't Know About The Real Estate Process, Some Inside Secrets Some people in the real estate industry have a terrible reputation. Why, because they deserve it.

HOME | SITE MAP © 2012 - 2021 All Rights Reserved Increase pagerank with HitsSurfer