mortgage

What is a bridge loan?

 

What is a bridge loan?

The Bankrate.com financial term of the day is: "Bridge Loan"

Let's say you're ready to move, you've found a home you want to buy, but you still haven't sold your current residence. A bridge loan provides in-between financing in these situations. Your old home is used as collateral to close on the new one. Bridge loans are short-term -- typically running for six months.

A bridge loan helps you bridge the gap if you need to buy your next home while you're still hanging on to the last one.

To find a great rate on a home loan, visit the Mortgage section at Bankrate.com.

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