How to Use This Tool
1. Enter Details
Input your loan amount, expected interest rate, and the number of months you need the funds.
2. Calculate
Click calculate to see your monthly interest-only payment and the total cost of the loan.
3. Reset & Plan
Adjust the term length or rate to see how different scenarios impact your wallet.
Understanding Bridge Loans
A bridge loan is short-term financing that helps borrowers “bridge” the gap between selling one property and buying another. It’s most common among homeowners and investors who need access to funds before an existing property transaction is finalized.
These loans are typically secured by real estate and are structured as interest-only, meaning you pay only interest during the loan term and repay the full principal once your property sells or long-term financing begins.
- Higher interest rates (6% – 12%)
- Short terms (6 – 12 months)
- Collateral-based approval
- Flexible repayment options
Frequently Asked Questions
What does this Bridge Loan Calculator do?
This calculator estimates how much a bridge loan will cost over your chosen term. It focuses on interest-only payments, showing your estimated monthly interest, total interest, and final payoff amount. Use it to understand costs, not eligibility.
Can I use this calculator to see how much I qualify for?
No. This tool is designed to show the cost of borrowing, not qualification limits. Lenders base approval on factors like property value, available equity, credit score, and your repayment plan.
What is the typical interest rate for a bridge loan?
Bridge loan rates typically range from 6% to 12% depending on the lender, your credit score, and the amount of equity in the property. They are higher than standard mortgages because they are short-term and riskier for the lender.
Are closing costs included in this calculator?
No. This calculator shows principal and interest only. It does not include lender origination fees, appraisal costs, or legal fees, which can add substantial costs to the loan. Always ask for a Loan Estimate.