Question:

What is a bridge loan mortgage?

Answer:

If you have bought a new house and had difficulty selling the old one, you probably know what is a bridge loan mortgage. In residential real estate, a bridge loan mortgage fills the gap for you between the purchase of a new property and the sale of the old one.

A Bridge Loan Mortgage Features

A bridge loan mortgage allows you to buy a new house before the other one sells; it can be used for down payment on the new house; usually covers not more than 80% of the current property value.

A bridge loan mortgage will span 1 to 3 years; a bridge loan may be applied entirely towards the purchase and mortgage of the new home, and usually does not have a prepayment penalty. Sometimes, the buyer may be requested to have a signed contract to sell the house to qualify for a bridge loan mortgage.

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Common misspellings: mortage and morgage