Question:

Can you give a bridge loan payment example?

Answer:

A common bridge loan payment example will be when a home buyer has chosen the new house they would like to get but has not yet sold the old one. The bridge loan may be used to make a down payment on the new property while waiting for the old house to be sold. Thus, for some time the borrower may end up making two mortgage payments at once.

FICO score is not considered in a typical bridge loan example, nor will the debt to income ratio be considered. A bridge loan payment will carry at least two percent higher rates than conventional loans. An example of bridge loan will have a loan term of up to three years.

Instead of a bridge loan, you may consider a HELOC to make the down payment for your new home, while waiting for the old one to be sold.

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Common misspellings: mortage and morgage