Bridge Loan Calculator

Calculate the cost of a bridge loan to buy your next home before your current home sells. See monthly carrying costs and total bridge financing expense.

How bridge loans work: You borrow against your current home's equity to fund the down payment on your new home. When your current home sells, the bridge loan is repaid.
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Bridge Loan Amount
$120,000
Secured against $250,000 equity in current home
Current Home Equity
$250,000
Monthly Bridge Interest
$950
Total Bridge Cost (6mo)
$5,700
New Home Mortgage
$480,000
Monthly Cost During Bridge Period
Bridge Interest
$950
Current Mortgage (P&I)
$1,000
Proceeds Needed at Old Home Sale
$320,000
Remaining Equity After Sale
$130,000

How to Use This Bridge Loan Calculator

Enter details about your current home, the new home you want to buy, and the financing terms to see your bridge loan amount and carrying cost.

Current Home Equity

The bridge loan is secured against your current home's equity (value minus mortgage balance). Most lenders will lend up to 80% of that equity. The calculator warns if your desired down payment exceeds this maximum.

Bridge Period

Select how long you expect to carry the bridge loan — from the day you close on your new home until your current home sells. Be conservative: if you think it will sell in 3 months, budget for 6. Bridge loans charge interest for every month you hold them.

Bridge Rate

Bridge loan rates are typically prime rate + 1–3%, making them significantly higher than regular mortgage rates. The rate matters most in how long you hold the loan.

Bridge Loan Cost Formula

Bridge Loan Amount = min(Down Payment Needed, Current Equity × 80%)

Monthly Interest = Bridge Loan Amount × (Bridge Rate ÷ 12)

Total Bridge Cost = Monthly Interest × Bridge Months

Repayment = Bridge Loan + Interest, paid from current home sale proceeds

Remaining Equity After Sale = Current Home Equity − Bridge Loan − Origination Fees

Example: Current home value $450,000, mortgage $200,000 = $250,000 equity. New home $600,000, need $120,000 down. Bridge loan = $120,000 at 9.5% for 6 months. Monthly interest = $950. Total bridge cost = $5,700.

Example: Moving Up in San Diego

The Garcias' Move-Up Strategy

Their $450,000 home has $250,000 in equity. They found their dream home at $600,000 and need to move fast in a competitive market.

Current Home Value$450,000
Current Mortgage$200,000
Current Home Equity$250,000
New Home Price$600,000
Down Payment Needed$120,000 (20%)
Bridge Loan Amount$120,000
Bridge Rate9.5%
Bridge Period6 months
Monthly Bridge Interest$950
Total Bridge Cost$5,700
Net from Old Home Sale$129,300 (repays bridge + costs)

The $5,700 bridge cost allowed them to make a non-contingent offer on their dream home — a significant competitive advantage. In San Diego's market, a non-contingent offer often wins vs. a contingent offer at a higher price.

Frequently Asked Questions

A bridge loan is short-term financing (typically 6–24 months) that lets you buy a new home before your current home sells. It's secured by your current home's equity and is repaid when that home is sold. Bridge loans let you make a non-contingent offer on your next home — a major advantage in competitive markets where sellers prefer buyers who don't have to sell first.
Bridge loans typically cost: 8–12% annual interest (paid monthly, interest only), plus 1–3 origination points (1–3% of the loan amount). On a $150,000 bridge loan at 9.5% for 6 months: $7,125 in interest + ~$3,000 in origination fees = ~$10,000 total. This is a meaningful cost, but in a market where your home sells quickly, it's often worth it for the competitive advantage.
Common alternatives: (1) HELOC — cheaper rate but lenders may freeze it once you list your home for sale; (2) Contingent offer — offer contingent on your current home's sale; risky in competitive markets; (3) Sell first, rent temporarily — avoids bridge costs but requires temporary housing; (4) 80-10-10 piggyback — 10% first down + 10% second mortgage to avoid PMI without needing to sell first.
Bridge loans can typically be extended for additional months, though at additional cost. If your home doesn't sell, you may need to reduce the price or consider renting it out. This is why it's critical to have a realistic selling plan before taking a bridge loan. Work with a local agent who can give you a realistic days-on-market estimate for your home and price point.
Yes — during the bridge period you're carrying three payments: your current mortgage, the bridge loan interest, and the new home mortgage. Lenders qualify you based on this combined obligation. This is why bridge loans work best when you have strong income or when you can afford to make payments on both properties for 6–12 months.

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