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How Do Bridge Mortgage Loans Work?
from: Mortage & Debt FactsImagine this scenario: As you are driving through another state, you suddenly pass by the dream home that you have always wanted. Problem is that you already have settled in another home. But since you really desire to live in that particular property, you consider relocating. Yet how can you do so when you still have an existing mortgage on your old home? It is possible with bridge mortgage loans.
Bridge mortgage loans are also known as swing loans. They serve as transition loans to pay off the new property with the old property’s impending sale. Sometimes, when you are in a hurry to transfer and your old property does not sell in time, a bridge mortgage loan will help bridge that gap.
Bridge mortgage loans pay off old mortgages, and the rest of the money they provide goes to the down payment of new homes. When the old property is sold, you can pay off the loan and continue paying traditional mortgage for the new home. There is another option for this type of loan, wherein the mortgage of the new property is placed together with the mortgage of the old property, and this amount is what you have to pay during the term.
As with other types of loans, bridge mortgage loans have certain advantages and disadvantages. One main disadvantage is that this type of loan is short-term and it has high interest rates. You will face high monthly payments, especially if your property does not sell in time. A major advantage of bridge mortgage loans is that people with less than perfect credit rating can qualify for them since they have higher interest rates.
Because of their high interest rates, you should think carefully before you apply for a bridge mortgage loan. If there are other options available that minimizes the risk, then check those options first before you decide to get a bridge loan.
Once you have decided to avail of bridge mortgage loans, you have to look around for companies that offer this type of loans. These companies include banks, credit unions, and mortgage companies. Having poor credit rating should not hinder you from qualifying for this loan since it is approved based on your real estate profile.
If you play your cards right, a bridge loan can be extremely helpful as you transfer from your old home to your new one. But as much as possible, do consider other options that are available to help you pay off your old mortgage, but if you are sure that you will be able to pay off your bridge loan, then by all means get one and start living in your dream home as soon as possible.
Loans Refinance Mortgage Specific links
Loans Refinance Mortgage News
Refinance Applications Increase in U.S. for Third Consecutive Week, Driven by ... - World Property Channel
 World News Resource | Refinance Applications Increase in U.S. for Third Consecutive Week, Driven by ... World Property Channel "Mortgage rates again dipped to new record lows in the survey, which spurred more borrowers back into the refinance market. As a result, applications for refinance loans have increased for the third straight week and are at the highest level since ... Even Lower Interest Rates Keep Refi's Rolling Mortgage Rates Today: Slight Upticks at Bank of America |
LendingTree Analysis Indicates Greater Savings with Adjustable-Rate Mortgages ... - MarketWatch (press release)
LendingTree Analysis Indicates Greater Savings with Adjustable-Rate Mortgages ... MarketWatch (press release) With Adjustable Rate Mortgages (ARM) representing only about 7% of new loan originations in the market, many consumers are seemingly unaware that these adjustable rate loans are worth a second look. As refinance volume has increased year over year, ... |
MBA Weekly Survey: Refinance Applications Increase Because of Record Low ... - LoanSafe
 New Zealand Herald | MBA Weekly Survey: Refinance Applications Increase Because of Record Low ... LoanSafe “Mortgage rates again dipped to new record lows in the survey, which spurred more borrowers back into the refinance market. As a result, applications for refinance loans have increased for the third straight week and are at the highest level since ... Time to Refinance While Mortgage Rates are So Low Mortgage applications up on refi demand: MBA Refinancing Up as Rates Keep Falling |
Refinancing homeowners overwhelmingly choose fixed loans - e-wisdom.com
 e-wisdom.com | Refinancing homeowners overwhelmingly choose fixed loans e-wisdom.com By Max Thompson A great majority of homeowners who opted to refinance in the first quarter (Q1) of 2012 choose fixed-rate mortgages over adjustable-rate mortgages for their new loan, Freddie Mac revealed in a recent report. According to Freddie Mac, ... Freddie Mac Repurchase Policy Is MBS Investors' Latest Worry Freddie Mac reports $330M Bank of America mortgage prepayment Investors,Analysts Don't All See Benefits In Single Agency MBS |
Homeowner Refinance Bill Moves into Committee - C-SPAN
 C-SPAN | Homeowner Refinance Bill Moves into Committee C-SPAN On Thursday, the Senate Banking Committee will discuss a measure to help homeowners with government-backed loans refinance to lower interest rates. Democratic Senators Bob Menendez (D-NJ) and Barbara Boxer (D-CA) introduced the bill, ... |