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Old 03-24-2010, 08:50 AM   #181
yads
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Bump for a question in regards to bridge loans. Let's say you own a $250K home (A) and are buying a $500K (B) home. You sell home A and just bought home B. You need a bridge loan because you take possession of home B a month before your sale of home A goes through. Furthermore you have a $150K mortgage on home A that you are porting.

How much would the bridge loan be for? $250K? $100K? Or some other amount?
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Old 03-24-2010, 09:49 AM   #182
fundmark19
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The loan is for all of home B or for the difference of anything you are putting cash into that is not from the sale of your home A. Once home A is sold it reduces the loan to a regular mtg I believe. You need to fully pay for home B until home A is sold and done with
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Old 03-24-2010, 10:08 AM   #183
yads
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So they don't give you the mortgage funds for home B until after home A sells? That doesn't really make sense. So what you're saying for the scenario above:

Before home A sells
Bridge loan = $500K
Mortgage = $150K

After home A sells
Bridge loan = 0
Mortgage = $400K

Wouldn't it make more sense that before home A sells you would have:
Bridge loan = $100K
Mortgage = $400K
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Old 03-24-2010, 11:27 AM   #184
fundmark19
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Probably I didn't even think of it that way at all.
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