Compass Mortgage - Bridge Loans for NH Homeowners

Bridge Loans

For many homebuyers, purchasing a new home involves selling their old one. For a number of reasons, most people would prefer to sell their old house and buy their new one on the same day. But that's not always possible:

Sometimes:

you have to sell your old house a few weeks (or months) before you buy your new one, or
you buy your new house before closing on the old one, forcing you to pay two mortgages for a while

Few people can afford to make the monthly mortgage payments on both homes. That's why some borrowers look for a "bridge loan" to span the gap between selling their old house and buying a new one. Because the bridge loan acts as your down payment, it reduces the loan amount (and monthly payment) for the new home…. making it more immediately affordable.

A bridge loan uses your existing home as collateral for the new one. You’ll be taking on the equivalent of three loans -- the mortgages on the old and new homes, as well as the bridge loan. Bridge loans are meant to be short-term: most are expected to be paid back within six months or when your old home is sold. Typically, a bridge loan is available only if someone has already agreed – and signed a contract -- to buy your old house. Interest rates and fees for bridge loans can be higher than other types of mortgage loans, although terms and conditions will vary from program to program.

If you find the home of your dreams when you least expect it, know that bridge loans can provide a short-term solution for buying it.

Wondering if a bridge loan is right for you? For details on Compass Mortgage, call Charley Farley at (603) 471-9300 or e-mail charley.farley@weloannh.com.

Compass Mortgage Inc. - 172 Route 101 - Bedford, NH 03110-5416
Office Phone: (603) 471-9300 Fax: (603) 472-8811 Toll Free Phone: (877) 211-5300

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