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Bridge Loan Calculator
Model a bridge loan used to buy a new home before the current home sells. Enter your current-home equity, the lender's combined LTV cap, and the short-term rate — then see the bridge amount, monthly payment, and balloon payoff expected from the sale.
Purchase and current home
Most bridge lenders cap total debt at 75%-85% of the current home value.
Bridge loan terms
Most bridge loans are 6 to 12 months.
Bridge loan amount
$165,000
Based on 80% combined LTV cap
Monthly payment
$1,581
interest-only payments
Balloon payoff at term
$165,000
expected from sale proceeds
All-in cost of the bridge
$22,650
≈ 13.7% annualized
Equity and cost breakdown
The bridge loan covers the gap between closings. Plan to repay from the net sale of the current home — the balloon amount shown assumes the loan is still open at term end.
Max combined debt allowed
$380,000
current home value × LTV cap
Equity available for bridge
$165,000
after existing mortgage
Origination fee
$2,475
Total closing fees
$3,675
Net cash available at closing
$161,325
Total interest over term
$18,975
Bridge loans are designed for short gaps between closings and are usually secured by the current home. The balloon is repaid from the net sale proceeds — pressure test your sale price and timeline before committing.
How to Use
- Enter the price of the new home plus the current home's market value and existing mortgage balance.
- Set the lender's max combined loan-to-value — most bridge programs cap combined debt at 75% to 85% of the current home value.
- Enter the bridge rate and term. Short-term rates run well above conventional mortgages, and 6 to 12 months is the typical term.
- Choose the payment structure: interest-only, interest accrued until payoff, or a fully amortized payment if the lender requires it.
- Add origination and other closing fees so the all-in cost and the net cash available at closing are both reflected.
Frequently Asked Questions
What is a bridge loan?
A bridge loan is a short-term loan (typically 6 to 12 months) secured by your current home that lets you close on a new home before the existing one sells. When the current home sells, the bridge is paid off from net proceeds.
How much can I borrow with a bridge loan?
Most lenders cap combined debt across both homes at 75% to 85% of the current home value. The bridge amount is the difference between that combined LTV cap and your existing mortgage balance.
Is a bridge loan better than a HELOC?
A HELOC on the current home is usually cheaper but must be opened before the home is listed — many lenders won't fund a HELOC on a listed property. Bridge loans are more expensive but have no listing restriction and are underwritten with the short payoff in mind.
What happens if my current home does not sell in time?
Most bridge loans have an extension option for a fee, or can be refinanced into a longer-term product secured by the new home. If neither works and the balloon comes due, lenders can foreclose on the current home. Price conservatively and confirm an extension policy up front.
Are bridge loan fees tax deductible?
Interest on a loan secured by a primary or second residence may be deductible subject to the current mortgage interest limits. Origination fees are generally capitalized into the cost of the financing. Consult a tax professional.
Related Calculators
HELOC Calculator
Compare a HELOC on the current home versus a bridge loan for equity access.
Cash-Out Refinance Calculator
Evaluate a cash-out refinance as an alternative source of the down payment.
Home Equity Loan Calculator
Size a fixed-rate home equity loan against the same equity the bridge is tapping.
Seller Net Sheet Calculator
Confirm the sale side will net enough to pay off both the bridge and the existing loan.
Mortgage Calculator
Run the permanent financing on the new home that will replace the bridge.
Closing Cost Calculator
Layer bridge origination fees into buyer-side cash to close.
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