Secure Bridge Loan for Real Estate Purchase Secrets Today
Costs and Considerations
While bridge loans offer numerous benefits, it is essential to understand the associated costs. Interest rates on bridge loans are typically higher than those on traditional mortgages, often ranging from 8% to 10%1. Additionally, there may be fees involved, such as origination fees, appraisal fees, and closing costs, which can add up quickly.
Before committing to a bridge loan, it's crucial to evaluate your financial situation and have a clear plan for repaying the loan. Consider the potential risks, such as the possibility of your existing property taking longer to sell than anticipated, which could lead to additional financial strain.