Buying your next home before the current one sells? Enter your home's value, mortgage and the bridge loan terms. You'll see how much you can borrow, the fees and interest-only payments, the cash left for your next down payment, and the equity left after you sell.
Last updated:
Home you are selling
$
$
0 if the home is paid off.
%
Combined limit across all loans on the home; 80% is common.
%
Agent commission, transfer taxes and closing costs.
Loan structure
Bridge loan terms
$
Leave empty to use the maximum.
% / yr
months
How long until your current home sells.
%
$
Appraisal, title, escrow, admin fees.
Interest
$
You keep paying it while the bridge loan is open.
Next home (optional)
$
%
%
Enter your values to see the result.
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How to use the Bridge Loan Calculator
Enter your current home's value, the mortgage balance and the lender's maximum LTV.
Choose the structure: a second lien that keeps your mortgage, or a bridge that pays it off.
Add the bridge terms: rate, term in months, fees and how interest is paid.
Optionally enter your next home's price and down payment to check whether the cash covers it.
Review the cash available, payments, total cost and equity left after the sale.
How a bridge loan is calculated
A bridge loan is short-term financing, usually 6 to 12 months, secured by the home you are selling. It lets you use that home's equity for the down payment on your next home before the sale closes. Lenders size it with a combined loan-to-value (CLTV) limit, often 80%:
Second-lien bridge: bridge loan = home value × max LTV − existing mortgage. Your first mortgage stays in place and you keep paying it.
Payoff bridge: bridge loan = home value × max LTV. The loan first pays off your mortgage, and the rest is cash for you.
Cash available = bridge loan − upfront fees (− mortgage payoff for a payoff bridge). Most bridge loans charge interest only: monthly interest = loan × annual rate ÷ 12. Some lenders let the interest build up and collect it when the old home sells. That eases cash flow, but you still pay the interest at closing. When the home sells, the sale proceeds repay the bridge loan in one lump sum.
Interest on a $200,000 bridge loan
Rate
Monthly interest
3 months
6 months
12 months
8%
$1,333.33
$4,000
$8,000
$16,000
9%
$1,500.00
$4,500
$9,000
$18,000
10%
$1,666.67
$5,000
$10,000
$20,000
11%
$1,833.33
$5,500
$11,000
$22,000
Interest only, simple interest, before fees. Bridge loans often add a 1% to 3% origination fee plus appraisal and title costs. Rates and terms vary by lender, so treat the defaults as examples and enter your own quote.
Tips before you take a bridge loan
Plan for a slow sale. Check what happens if the home takes longer to sell than the term: extension fees, a higher rate, or a balloon payment due.
Count both payments. With a second-lien bridge you may carry your old mortgage, the bridge interest and the new mortgage at the same time, and lenders usually check that you qualify for all of them.
Compare alternatives. A HELOC, a home-sale contingency on your offer, a buy-before-you-sell program or a short-term rent-back can cost less.
Use a realistic home value. The loan is capped by the appraisal, and selling costs of 5% to 8% reduce what is left after the sale.
Frequently asked questions
How much can I borrow with a bridge loan?
Most lenders cap total borrowing at about 80% of the current home's value. With a $550,000 home and a $240,000 mortgage, 80% is $440,000, so a second-lien bridge loan could be up to $200,000 before fees.
How are bridge loan payments calculated?
Bridge loans are usually interest-only. The monthly payment is the loan amount times the annual rate divided by 12. A $200,000 bridge loan at 9.5% costs about $1,583 a month. The principal is repaid in one lump sum when your old home sells.
What fees come with a bridge loan?
Expect an origination fee of about 1% to 3% of the loan, plus appraisal, title, escrow and admin fees. Fees are usually taken from the loan proceeds, which reduces the cash you receive.
What is deferred interest on a bridge loan?
Some lenders let interest build up instead of charging a monthly payment. The total is then paid from your sale proceeds along with the loan. It eases cash flow while you carry two homes, but it does not reduce the cost.
What happens if my house doesn't sell before the bridge loan ends?
You may need to request an extension, often for a fee or at a higher rate, refinance, or repay from other funds. Ask about extension terms before signing, and pick a term with room for a slower sale.
Is a bridge loan better than a HELOC?
A HELOC usually has a lower rate and fees, but many lenders will not open one on a home that is listed for sale, and it takes time to set up. A bridge loan is faster and built for the sale, but it costs more. Set up a HELOC early if you can.
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