Bridge Loan Alternative
Shopping for a bridge loan? We'd be thrilled to answer your questions about how these work! Give us a call today at 941-504-1445. Ready to begin? Apply Online Now
A Bridge Loan uses the equity in your existing home to purchase a new home! It is basically a short term Home Equity Line of Credit. Once you purchase your new home you can then put your existing home on the market, and when it sells, pay off the Bridge Loan. The loan may run around $2000 in closing costs.
There are other alternatives to Bridge Loans that offer more longevity.
You purchase your new home with a first mortgage under 80% loan to value and then use a Home Equity Line of Credit (HELOC) for the additional down payment. The HELOC costs the same amount as the Bridge Loan.
Once you sell your old home you can pay off the HELOC with the proceeds and it still remains available for you to use for 10 years. If you want to pay down the first mortgage at the same time, you can also do what is called a "RECAST" within the first year. For $150 you will be able to ask the lender to reduce your loan amount and adjust the principal and interest payment without having to refinance the loan.
Have questions about the options available to you? Call, text, or email Sherry Bitner 941-504-1445 Sherry@SherryBitner.com