Do you need a bridge loan for a period of 2 weeks to 3 years as you await long term loans?

Talk to us today for assistance

888 310 0026

 

Mortgaging your current home as you wait to move to a new home? No problem, talk to us on 888 310 0026 so that we can assist you finance your new home with a bride loan

It may happen that that you want to move to a newer and better home than your current one. The transition may be hectic if for some reasons, you do not have the mortgage the new home yet you have not sold your old house. This means that you need some short term financing to enable you secure your new house before you move into the new one. A bridge loan comes handy as it enables you to do exactly that; you are able to get a short term loan for between 2 weeks and around 3 years so that you are able to make a deposit payment for your new home. Talk t o our bridge loan experts to assist you.

The nature of Bridge loans

Lack of well defined standards on such issues as debt-income ratios by many financial institutions make it difficult for borrowers to benefit from short term financing. This is because borrowers who have existing mortgage obligations are excluded from entering into any financing for a home until they finish their current obligations. However, bridge loans exist to abolish such notions and instead consolidate any pre-existing mortgage to the one advanced for acquiring the new home. There are a number of reasons why many borrowers are co-opted into a second loan despite having an existing loan.

The existence of an existing mortgage can be consolidated with bridge loan so that it becomes one loan. This enables the buyer to acquire a new home against their asset-the house.

The house serves as a security in the sense that they will not be able to sell their old house until they complete the payment of the existing loans.

The buyer will be presumed to own both the old and the new home is not an investment risk.

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If you are home-owner seeking a bridge loan and meet the criteria subjected to an under wiring programmed.  The debt-income ratio is usually an important consideration on whether you will qualify for a bridge loan.  For instant, the so called jumbo loan is advanced to loan-seekers on the basis of debt-income ratio of 50%. Jumbo loan in this case is one whose credit quality is high and whose amount ranks higher than conventional limits set for loans. For more information on such loans, talk to our financial experts.


How much do you pay for bridge loans?

A bridge loan comes with price tag.  There are rates that applicable depending on which Leander you are consulting. These fees are applicable on all bridge loans and apply on the following:

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 Administration fee which usually a one-off fee and varies from lender to lender.

 The fees for appraising your application

  The fees for holding your loan amount in escrow

  A charge is attached to title policy

  Legal fees also known as notary fees

 Fees are charged for recording the entire transaction

You will be charge an amount of money for wiring, courier services or drawing from the loan account.

Loan origination fee will be charge and is usually based on the amount of the bridge loan that you requested and applied for.

Note that the loan origination fee also varies depending on the lender but is equated to 1% of the loan applied for. One scenario here will suffice.


 
 

Suppose you take a bridge loan of between $25,000 and $100,000. In such case, 0.5 points will be charged on the amount. You will notice that these points will increase with the increment on the bridge loan such that you end up with more points. Having this kind of information is crucial to helping you secure a bridge loan at favourably low interest rates. Talk to us for more details.