| Title: | DCU |
| Notice: | 1996 BoD Election results in 1004 |
| Moderator: | CPEEDY::BRADLEY |
| Created: | Sat Feb 07 1987 |
| Last Modified: | Fri Jun 06 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 1041 |
| Total number of notes: | 18759 |
Can anyone explain the logistics of a bridge loan? Is this simply a re-financed mortgage that "partially" pays two mortgages at the same time? Thanks for any help... -Ron-
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 192.1 | SALEM::RIEU | We're Taxachusetts...AGAIN!!! | Wed Aug 02 1989 09:30 | 5 | |
I believe it's a loan to pay your old mortgage's payments while
you are trying to sell your 'old' home. It's sometimes necessary
if you move into your new house before you've sold or closed on
the old one.
Denny
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| 192.2 | also used to bridge construction loan/mortgage | AZTECH::JARRETT | Wed Aug 02 1989 12:50 | 4 | |
It memory serves, a bridge loan can also be used as an interim instrument between a construction loan and perminent mortgage. -Wayne | |||||
| 192.3 | Short-term (hopefully) access to home equity | ULTRA::KINDEL | Bill Kindel @ BXB1 | Wed Aug 16 1989 10:50 | 15 |
A bridge loan is used to "bridge" the gap between the purchase of one's
new home and the final sale of one's old home. Most people complete
the sale of their former residence before closing on their new one, so
they have the proceeds of the sale with which to make the purchase.
Sometimes circumstances prevent this from happening. One may have a
contract on the old home but need to close on the new one. A bridge
loan would be obtained (secured by the old home) in order to provide
the downpayment on the new home. When the old home's sale closes, the
bridge loan (plus interest) is repaid from the proceeds.
Occasionally, there ISN'T a contract on the old home. Then life
becomes very difficult! Two mortgage payments can ruin one's whole
month. Many lenders won't grant bridge loans under such circumstances,
but some will.
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