Bridge Loan Calculator
Buying your next home before the current one sells? A bridge loan covers the gap — usually as a short-term, interest-only loan with a lump-sum balloon payoff. Enter the loan amount, rate, and term to see the monthly payment, balloon amount, points, and the true total cost of your bridge financing. Runs entirely in your browser.
Frequently Asked Questions
What is a bridge loan?
A bridge loan is a short-term loan that "bridges" the gap between buying a new home and selling your current one. It lets you tap the equity in your existing home for a down payment or purchase, and you repay it — usually in one lump sum — when the old home sells. Most bridge loans last 6 to 12 months.
How much does a bridge loan cost?
Bridge loans cost more than regular mortgages: rates typically run 1–3 percentage points above standard mortgage rates, plus 1–2 origination points (each point = 1% of the loan) and closing fees. For example, a $200,000 interest-only bridge loan at 8.5% for 6 months costs about $8,500 in interest plus $3,500 in points and fees — $12,000 total before repayment.
Are bridge loan payments interest-only?
Usually, yes. Most bridge loans use interest-only monthly payments with the full principal due as a balloon payment at the end of the term (or when your old home sells). Some lenders offer fully amortizing bridge loans, which have higher monthly payments but no balloon. Compare both above to see the difference.
What is the balloon payment on a bridge loan?
The balloon is the lump sum due at the end of the term: for interest-only bridge loans it equals the full original loan amount. It is normally repaid from the proceeds of selling your previous home. If the sale is delayed, you may need to refinance or extend the loan — which is why having a backup plan matters.
Who qualifies for a bridge loan?
Lenders look for substantial equity in your current home (often at least 20–30% after the bridge loan), a solid credit score, and the ability to carry two housing payments at once. You generally need a signed purchase contract for the new home, and some lenders require a listing agreement for the old one.
Should I get a bridge loan or a HELOC instead?
A HELOC (home equity line of credit) usually has lower rates and fees than a bridge loan and no balloon payment, but it requires an appraisal, takes weeks to open, and your available credit depends on existing equity. A bridge loan funds faster and covers larger gaps — at a higher price. Run both scenarios and compare the total cost over your expected timeline.