Bridge Loan

How did I get into a house too big for my budget? My eyes were too big, my calculations too clever, my research too great, loan offenders very willing to help me and a bridge loan! 

If you're ever thinking of one or someone ever mentions one, run away and don't look back!

https://www.bankrate.com/finance/mortgages/bridge-loans-ease-the-transition-from-one-home-to-another-at-a-cost.aspx

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  • We plan on selling in a couple of years and buying another home, I had thought that a bridge loan might help. Now I know to steer clear of it. Definitely sell first then buy. Yikes....

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      • Khaki Storm
      • YNAB book topics online: https://support.youneedabudget.com/r/q5w48j
      • Khaki_Storm.1
      • 2 yrs ago
      • Reported - view

      Green Mask here's how it went: closing costs on bridge loan about 3000, interest only payments on bridge loan about 2400, closing cost on refinancing to pay off/convert bridge loan about 3000. 

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  • We’ve used a bridge loan twice and have been very happy with them. We went from a $42,000 house to a $75,000 house and then a $85,000 house. 

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      • Khaki Storm
      • YNAB book topics online: https://support.youneedabudget.com/r/q5w48j
      • Khaki_Storm.1
      • 2 yrs ago
      • Reported - view

      satcook yes, you can jump up in home values a lot. We had a significant jump as well. 

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  • They serve a purpose, but of course there is a price. Doesn't make them unusable. Sometimes you simply cannot sell first without losing out on a buying opportunity. Just factor the bridge fees into the cost of the opportunity when assessing whether it's worth it. Also shop around -- they don't all have an effective $6k fee before the dust settles.

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      • Khaki Storm
      • YNAB book topics online: https://support.youneedabudget.com/r/q5w48j
      • Khaki_Storm.1
      • 2 yrs ago
      • Reported - view

      dakinemaui There was only 1 place I found offering them around me. I called one of those national mortgage companies and the as told I was describing a product that didn't exist. Thanks national mortgage company for nothing. 

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