What Is a Bridge Loan and How Does It Work? [Video]

Post author By Curator
Post date December 4, 2024

A bridge loan is a form of short-term financing that can cover the gap between buying a new home and selling your current one.

While bridge loans are used in a variety of fields, in the real estate market they usually provide cash for a down payment or closing costs. Bridge loans can also be used to pay off your old mortgage, flip a house or supplement renovation financing.

They usually have higher interest rates and shorter terms and, since they use your house as collateral, you risk foreclosure if you can’t pay the full amount when the time comes.

What is a bridge loan?

Unless they’re first-time homebuyers, most people use the proceeds from the sale of their last house to buy their next one. If you haven’t sold your old place yet, a bridge loan can cover your down payment or closing costs until you do.

Also known as swing loans, gap loans and interim …

Watch/Read More

Tags Business Funding, Funding, Working Capital

Most Popular Posts Today

Small Business Funding

AI integration layer start-up Jentic raises 4m [Video]

Post author By Curator
Post date December 4, 2024

Jentic, a Dublin-based start-up building the integration layer for artificial intelligence, has raised 4m in a funding round led by Irish investment firm