What Is A Bridge Loan For Homes


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Bridge Loan to Your New Home – The Workshop Team – Some bridge loans pay off your existing mortgage on your old home at closing, others leave your old loan(s) in place. If the bridge loan you’ve chosen doesn’t pay off your existing mortgage, don’t forget to budget for continued payments on it until you close on the sale of your old home.

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A bridge loan is a type of short-term loan, typically taken out for a period of 2 weeks to 3 years pending the arrangement of larger or longer-term financing. It is usually called a bridging loan in the United Kingdom, also known as a "caveat loan," and also known in some applications as a swing loan.

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