July 27th, 2007

When Do You Need a Residential Bridge Mortgage Loan?

Posted in Finance, Lending, Loans, Real Estate

This situation happens many times everyday somewhere across the country. A person is out driving around and sees an open house. The person, a homeowner already, decides to take a look at the open house just for fun.

He or she walks into the house and immediately falls in love with it. It is his or her dream home.

The person decides to make an offer on the house. The problem is it’s going to take some time because this person’s existing home isn’t even on the market yet. What can be done?

This is where a residential bridge mortgage loan comes into play. A bridge loan will allow the person to use the equity in his or her exisiting home to make the downpayment on the new home.

Bridge loans are not right for everyone. You may be better off with a home equity loan that can serve the same purpose.