How high are bridge loan interest rates in general?
Answer:Bridge loan interest rates will usually be 2% higher than a conventional 30-year fixed mortgage, but you will also have to pay the bridge loan back in a year (occasionally, repayment is required in three years or in several months).
However, in between the gap before your previous house gets sold and you move to your new home, the bridge loan may not demand monthly payments at all, depending on your bridge loan agreement. Thus, you will not be paying for your old mortgage, your new mortgage and the bridge loan at the same time.
Even if bridge loan interest rates are higher than those for a conventional loan, a bridge loan may be necessary if you really want to get a new house and don't want to sit around for half a year or so, waiting for your old home to be sold. The bridge loan, even with higher interest rates, will make for a smooth gap financing, as bridge loans are often called.
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