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Bridge Loan vs HELOC Calculator
Compare a bridge loan to a HELOC for short-term gap financing. The HELOC usually wins on cost — but only if it's already in place when you need it. Bridge loans win on speed.
Bridge loan
origination + processing
HELOC
Bridge total
$7,300
interest + fees
HELOC total
$4,150
interest + fees
Difference
$3,150
HELOC saves
Pros and cons
Bridge loans: faster to set up, no income re-qualification, but higher rates and meaningful fees. HELOCs: lower rates and fees, but require credit/income docs and take 30–45 days to set up. Plan ahead.
A HELOC opened well before you need it is almost always cheaper. A bridge loan wins when timing is tight (closings 2–4 weeks apart) and you don't have a HELOC already established.
How to Use
- Enter the bridge loan amount, rate, and total fees (origination, processing, etc.).
- Enter the HELOC drawn amount, rate, and setup fees (often $250–$1,500).
- Enter the months until you'll repay both.
- Compare total cost (interest + fees) for each option.
Frequently Asked Questions
When is a bridge loan the right choice?
When timing is tight — you need cash in 1–3 weeks and don't have a HELOC ready. Bridge lenders fund quickly with limited income docs. The trade-off is rate and fees.
Why is a HELOC usually cheaper?
HELOCs are revolving lines secured by your home. Lower rates than bridge loans (often 1–3% lower), much smaller setup fees. The catch: 30–45 day setup, full credit and income underwriting.
Can I use a HELOC for a down payment on a new home?
Yes — HELOCs are commonly used to fund the gap between buying the new home and selling the old one. Many lenders will count the HELOC payment in DTI for the new mortgage; some don't if you can show repayment from the home sale.
What happens if my old home doesn't sell?
Both bridge loans and HELOCs become longer-term debt. Bridge loans typically balloon at 6–12 months — you must refinance or pay off. HELOCs have longer draw periods (often 10 years) so you have more time to plan.
Related Calculators
Bridge Loan Calculator
Standalone bridge loan calculator.
HELOC Calculator
Standalone HELOC payment and balance calculator.
HELOC vs Home Equity Loan Calculator
Compare HELOC to a fixed home equity loan.
Cash Out Refinance Calculator
Third option for tapping equity.
Cash-Out vs HELOC Calculator
Cash-out refi vs HELOC for the same purpose.
Seller Net Sheet Calculator
Plan the proceeds from the old home that will retire the bridge debt.
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