A Bridge Loan can still help if you are paying cash for your new home. Instead of using it alongside a new mortgage, the Bridge Loan uses the equity in your current home to provide funds for your purchase. That can help you buy the new home before your current one sells.
You would make monthly payments during the 6-month term based on a 240-month amortization schedule. When your current home sells, the remaining balance would be due in one balloon payment, or it would be due at maturity if the home has not sold yet.
This can be a good option if you want to make a strong cash offer, move once, and avoid waiting for your current home to sell before buying your next one.
To find out whether a Bridge Loan, HELOC, or Fixed Term Home Equity Loan makes the most sense for your situation, connect with a Home Equity Specialist at People Driven Credit Union to get your questions answered.
