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bridge loan, n. A loan that "bridges" the gap between the purchase of a new home and the sale of the borrower’s current home. The borrower’s current home is used as collateral and the money is used to close on the new home before the current home is sold. Some are structured so they completely pay off the old home’s first mortgage at the bridge loan’s closing, while others pile the new debt on.
A "bridge loan" is basically a short term loan taken out by a borrower against their current property to finance the purchase of a new property. Also known as a swing loan, gap financing, or interim financing, a bridge loan is typically good for a six month period, but can extend up to 12 months.
Bridge Loans. A " bridge loan " is basically a short term loan taken out by a borrower against their current property to finance the purchase of a new property. Also known as a swing loan, gap financing, or interim financing, a bridge loan is typically good for a six month period, but can extend up to 12 months.
Definition: A short-term loan that is used until a company secures permanent financing or removes an existing obligation. A bridge loan provides an immediate cash flow. In venture capital, a bridge is usually a short term note (6-12 months) that converts to preferred stock.
Bridge loans can save the day when you're buying and selling a home at the. and the homebuyer's new mortgage in the event the buyer's existing home hasn't .
bridge loans roll the mortgages of two houses together, giving the buyer flexibility as they waits for their old house to sell. However, in most.
Bridge Loan A loan for a short-term period, usually two weeks to three years, until long-term financing can be arranged or an obligation is removed. interest rates are relatively high, often 12-15%. bridge loans are used to satisfy working capital needs; for example, if a company is arranging for an IPO or a bond issue in the coming months, but needs.