| With today's more mobile society, there's a need | | | | making interest only payments on the house; in |
| for a bridge mortgage loan. Families are moving | | | | effect buying you more time to sell the old house. |
| more often, requiring more flexible terms for | | | | Cons of a Bridge Mortgage Loan |
| loans on homes. These types of loans are unique | | | | Let's face it; no one really wants to deal with at |
| from just about every other mortgage loan | | | | least three mortgage loans in a short period of |
| because they are extended for only a short time, | | | | time. You will have your current home mortgage |
| normally a year, and are designed for that period | | | | loan, the bridge mortgage loan, and the new |
| between putting a house up on the market and | | | | house loan to contend with within the span of a |
| actually selling it. | | | | year's time. Another feature some people would |
| Like everything else, there are pros and cons to | | | | consider a drawback is that you must use the |
| using a bridge mortgage loan during the sale | | | | same lender for your new home mortgage as |
| process. | | | | you did for the bridge mortgage loan. |
| Pros of a Bridge Mortgage Loan | | | | This type of loan isn't for everyone considering |
| The first positive thing about a bridge mortgage | | | | that bridge mortgage loans often come with |
| loan that can't be overlooked is how convenient it | | | | higher mortgage fees and interest rates. For |
| is to have a temporary loan set in place for the | | | | those who simply don't find it economical to |
| time in between selling your old home and buying | | | | handle the selling of their home in this manner, |
| a new one. Depending on the lender and how this | | | | you can always consider borrowing against your |
| type of mortgage loan is set up, you can choose | | | | 401K plans or liquidating other assets to get you |
| to pay off the existing loan and the extra money | | | | and your family through the transition stage. |
| after interest and closing costs can be used for a | | | | Some people have also had success by taking out |
| down payment on the new home. | | | | personal loans by securing the transaction with |
| Typically a bridge mortgage loan only lasts for a | | | | currently held stocks. |
| year and when you sell your home, the loan is | | | | There are options out there for making your life |
| automatically paid off. Another enticing aspect of | | | | easier during the selling and buying of your homes. |
| bridge mortgage loans is that if you haven't sold | | | | Bridge mortgage loans are incredibly beneficial |
| your home in 6 months, you have the option of | | | | under the right set of circumstances. |