A “bridge loan” is basically a quick term loan applied for with a debtor against their present property to invest in the acquisition of a property that is new.
Also referred to as a swing loan, gap funding, or interim funding, a connection loan is usually beneficial to a six thirty days duration, but can expand as much as one year.
Many connection loans carry mortgage roughly twice as much normal fixed-rate product and have similarly high closing expenses.
Bridge loans are applied for whenever a debtor is wanting to update to a larger home, and possessn’t yet offered their present house. (more…)