Bridge Loan Calculator

A bridge loan is written against the equity in the home you are selling, and the question that actually matters is what it costs to carry both properties until that home settles. Enter the departing home's value, the mortgage still on it and the lender's loan-to-value cap and this works out how much the bridge can be and how much cash it frees for the new purchase. It then adds up the interest-only payment, the old mortgage and the new one into a single monthly carry figure, and prices the origination points, fees, interest and exit fee into a total and an effective annual rate. A second action runs the sale itself, showing what is left after the selling costs, the mortgage and the bridge payoff, and the lowest price that still clears.

Calculator Type

Value of the Home You Are Selling ($) *

What it will realistically sell for, not what you hope. The lender will use its own appraisal and will lend against that.

Mortgage Still Owed On It ($) *

Lender Cap on Combined Loan to Value (%) *

The most the lender will allow against that home counting every lien on it, the existing mortgage included. 75 to 80 is typical.

The bridge pays off the existing mortgage as well

Interest Rate (%) *

Bridge Term (months) *

The date the whole balance falls due. Six or twelve months is usual.

Months You Expect to Carry Both Homes *

From closing on the new home to the old one settling. This is the number the whole cost turns on, and it is the one people get wrong.

Origination Points (%)

Other Lender and Closing Fees ($)

Underwriting, appraisal, title, escrow and legal, as one figure.

Exit or Payoff Fee (%)

Charged on the balance when the loan is repaid. Common on bridging in the UK, less so in the US, and easy to miss in a quote.

Monthly Payment on the Home You Are Selling ($)

Principal, interest, taxes and insurance. Leave at zero if the bridge pays that mortgage off.

Monthly Payment on the New Home ($)

Interest is rolled up and paid at the end, not monthly

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