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6 thoughts on “bridge-loan-calculator

  1. your “Both Payments Total” calculation on the Bridge Loan calculator is subtracting rather than adding the payments.

  2. Oh, that’s embarrassing. Thanks for taking the time to report it.

    Currently this site is in beta testing but with any luck, it will be updated this weekend and be live (with this fixed) sometime on Monday, 2/22.

    • I hope I understand your question, because I don’t want to mislead you. If you own two properties you are responsible for the taxes on both properties. However, this calculator is about one property with 2 mortgages – the primary mortgage loan and the bridge loan. I would only add the property taxes for the one property that acts as the collateral for these two loans.

      Does that answer your question?

    • I want to answer the question, but I don’t really understand it. Can you give me an example?

      Normally, this is the use for a bridge loan.

      Say you have a property that is going to sell for $300,000, and there is $150,000 mortgage balance on it.

      You want to buy a property that costs $500,000

      Your cash on hand is 20,000, but the mortgage company for the new home requires a 20% or $100,000 down payment.

      You can buy the 2nd house with a new mortgage even though you don’t have the full $100,000 cash for the downpayment. Mortgage companies will provide a bridge loan for the $80,000 needed, because you’ll clear $150,000 when the first home goes to closing.

      Of course these numbers do not take into account commissions, fees and other likely costs. The point is, the bridge loan uses the first property as collateral to provide cash to make the required down payment for the second. The bridge loan is paid back when the first property is sold.

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