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Author:
Bev Dodd
Web Site: http://www.family-refinance-consolidation-loans.com
Bridge
loan: Rates and terms that you can afford
Terms
of a bridge loan can very with each lender. If you think you
might need a bridge loan because of time problems in moving, be
sure to discuss this with your banker well in advance.
It's
a good idea to place your home on the market as far in advance
as possible of purchasing a new one. If you find a new home
first and then try to sell your present home, you may wind up
with two mortgages. If this does happen, ask your real estate
agent or banker about a bridge loan to help you make the double
payments. Lenders use the same criteria for offering bridge
loans as they use for mortgages.
If
you are going to sell your home yourself, consider hiring a
professional real estate appraiser to provide you with an
estimation of your homes present market value. Doing so will
assist you in setting a fair and reasonable asking price; you
don't want to have your home listed for sale longer than is
necessary. If so a bridge loan might be the answer.
Terms
of a bridge loan can vary. Some are structured so that they
completely pay off the old home's first mortgage, while others
pile the new debt on top of the old. A bridge loan is usually
based on the amount of equity in the borrower’s current home
with the proceeds going towards the purchase of a new home.
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