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Bridge Mortgage Calculator is a real estate calculator to calculate the monthly mortgage payments for multiple-family homes or commercial buildings.

Bridge Loan Calculator

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Bridge Loan Amortization Schedule

Payment Date Payment # Interest Paid Principal Paid Total Payment Remaining Balance
Apr, 2024 1 $1,250.00 $360.46 $1,610.46 $299,639.54
May, 2024 2 $1,248.50 $361.97 $1,610.46 $299,277.57
Jun, 2024 3 $1,246.99 $363.48 $1,610.46 $298,914.09
Jul, 2024 4 $1,245.48 $364.99 $1,610.46 $298,549.10
Aug, 2024 5 $1,243.95 $366.51 $1,610.46 $298,182.59
Sep, 2024 6 $1,242.43 $368.04 $1,610.46 $297,814.56
Oct, 2024 7 $1,240.89 $369.57 $1,610.46 $297,444.99
Nov, 2024 8 $1,239.35 $371.11 $1,610.46 $297,073.87
Dec, 2024 9 $1,237.81 $372.66 $1,610.46 $296,701.22
Jan, 2025 10 $1,236.26 $374.21 $1,610.46 $296,327.01
Feb, 2025 11 $1,234.70 $375.77 $1,610.46 $295,951.24
Mar, 2025 12 $1,233.13 $295,951.24 $297,184.37 $0.00

What is a bridge loan?

A bridge loan is a short-term loan used in businesses and real estate transactions to provide cash flow before securing a permanent mortgage.

How does a bridge loan work?

Bridge loans are often shorter than 1 year with a relatively higher interest rate compared to traditional mortgages. However, a bridge loan allows homeowners to borrow money to buy a house before they can sell their current house. A bridge loan gives them the option to buy first before they can sell their home. For example, a homeowner wants to buy a new house, but he doesn't have the cash in hand for a down payment and closing costs. He can wait until he sells his current home and uses the net proceeds from selling to buy a new home, but then he would need to rent a place in between. That's when a bridge loan comes in handy. A bridge loan allows the homeowner to have access to additional funding using his current home as collateral to buy a new house. Once the homeowner buys a new home and sells his current home, he can use the money to pay off the bridge loan. To get a bridge loan, homeowners must have at least 20% equity in their homes and they must sell their homes fast after they buy a new house to repay the bridge loan. Bridge loans are easier and faster to get approved which makes it easy for homeowners to leverage their homes and have access to quick cash.

How to qualify for a bridge loan?

To qualify for a bridge loan, you need to have significant equity in your current home. Lenders will also check your credit score, debt-to-income ratio (DTI), and income statements to make sure you are financially strong and responsible for your bills.

How to repay a bridge loan?

A bridge loan usually lasts less than a year, and you need to begin making payments as soon as you get the loan. You will likely have a final payoff date where you are required to pay off the entire loan. The payment structure for bridge loans differs from lender to lender, you will need to compare the rates and payment structure from multiple lenders to see which one fits your situation. Some lenders use a balloon payment where your monthly loan payments are low initially, and you will need to make a large final balloon payment to pay off the whole loan balance.

Benefits and drawbacks of a bridge loan

As with any other thing in life, there are benefits and drawbacks to a bridge loan.

Pros of bridge loans

  • Quick financing - homeowners don't have to worry about selling their current homes before buying a new one. Bridge loans are faster to get approved if you meet all the qualifications.

  • Avoid PMI payment - bridge loans allow homeowners to make a bigger down payment on their new home which would eliminate the private mortgage insurance or PMI payment. Conventional mortgages require borrowers to pay for PMI if their down payment is less than 20%.

  • Make offers without a sale contingency - with a bridge offer, you won't need a sale contingency when you make offers on your new home which would make your offer more attractive, especially during a hot real estate market.

  • Low initial payments - the initial payments for a bridge loan may be low or interest only depending on the structure of the bridge loan

Cons of bridge loans

  • Losing your home - the biggest risk of all is that you may lose your home if you have trouble selling your home to pay off your bridge loan when the balloon payment comes due.

  • Higher interest rate - bridge loans come with high-interest rates and APR which makes them very costly for homeowners.

  • Significant home equity - bridge loans require homeowners to have at least 20% equity in their homes.

  • Multiple mortgage payments - if you have difficulty selling your house after you bought a new home, you will have two mortgages and a bridge loan to deal with which could be stressful.

  • New mortgage only - you can only use a bridge loan in real estate for getting a new mortgage and not for other purposes. A business bridge loan can be used for business purposes only.

Bridge loan Alternatives

There are other alternative real estate loans to a bridge loan that you may consider.

1. Home equity loan

A home equity loan is a long-term loan secured by your current home. The interest rate is often much lower than a bridge loan. Similar to a bridge loan, homeowners need significant equities in their homes to qualify for a home equity loan. The drawback of a home equity loan is that defaulting on the loan would mean losing your home. Another downside is that since home equity loans are long-term loans, you will have two long-term mortgage payments after you buy a new home.


A home equity line of credit is another option that uses your home as collateral. Again, you will need a good chunk of equity in your home to qualify. HELOC acts like a credit card where there is a maximum amount of money that you can draw from, and you pay interest only on the amount you use, not the maximum limit. A HELOC can be used for any purpose, such as home improvement and repairs for your homes.

3. 80-10-10 loan

An 80-10-10 loan allows homeowners to get two loans, 80% on a home mortgage, 10% on a second loan, and a 10% down payment for the new house. After selling your current home, you can use the proceeds to pay off the second loan. With an 80-10-10 loan, homeowners will avoid paying for PMI on their new homes.

4. Personal loan

Depending on how much you need, a personal loan may also be an option. A personal loan is usually secured by personal assets. You will need a good credit score to qualify for personal loans with a competitive interest rate.

5. Business line of credit

A business line of credit is for businesses to raise funds to cover short-term expenses. unlike a bridge loan where the borrower is given a lump sum. A business line of credit gives borrowers access to a pool of money where they can draw as needed. Borrowers are only required to pay interest on what's used. A business line of credit has a longer-term repayment period but comes with a high-interest rate. Borrowers should only use a business line of credit for necessary short-term spending for a business.

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