What This Calculator Does
Prices the gap between buying a new home and selling the current one: the bridge amount existing equity can support, the interest-only carry while both properties are held, and the effect of an extended time on market.
Who Is This For
Move-up buyers who need to act before their current home sells, owners who found a new property before listing their own, and anyone weighing a bridge loan against selling first.
How It Works
Enter your current home's value and remaining mortgage balance, the bridge amount needed, the quoted rate and fees, and expected time to sell, to see the monthly carry and total cost.
Frequently Asked Questions
What is a bridge loan?
A bridge loan is short-term financing secured against the home you already own; it provides funds toward a new purchase before that home has sold and is generally repaid when the sale closes.
Why are bridge loans typically interest-only?
Bridge loans are designed as short-duration financing, so payments generally cover interest only, with the principal repaid in a lump sum at the eventual sale rather than amortized over time.
What happens if the current home takes longer to sell than planned?
Carrying costs on both properties continue to accrue, and any extension the lender grants often comes with additional fees, so it is worth modeling a longer-than-expected sale timeline before committing.
What is the alternative to a bridge loan?
Selling first and renting temporarily, or making a purchase contingent on the sale of the current home, are the common alternatives, each trading certainty for cost or competitiveness in a different way.