Question:

When to take a home mortgage bridge loan?

Answer:

Generally, a home mortgage bridge loan will be used when you are trying to move into a new house.

You have your old home that you want to sell, but home sales have been slow and you don't really know if you'll be getting your money soon. At the same time, you have spotted a house you don't want to miss on but you are short on cash for the down payment. A home mortgage bridge loan can be used to either repay your old mortgage and what is left can be used towards the new home mortgage - as a down payment and a new mortgage loan.

Or, the home mortgage bridge loan can be used to simply put 10% down on your new home, expecting the old house to be sold within several months to a year. Usually, the lender who gets you the bridge money will be your new mortgage lender.

However, if your old house has been fully paid off, you will not be in need for a new mortgage at all. Rather, you will want to only get a bridge loan and avoid getting into a permanent mortgage you don't need.

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