Bridge Loan Calculator — Cost of Buying Before You Sell
A bridge loan covers the gap when you buy a new home before your current one sells — typically 6-12 months at higher rates than a standard mortgage. On a $350,000 bridge at 9.5% for 12 months, interest-only payments run about $2,771/month plus origination fees. This calculator totals interest, fees, and dual-home carrying costs.
Taxes, insurance, HOA on both homes
Bridge Loan Cost
All-In Cost
$48,700
$2,771/mo interest-only
Methodology and limitations
Last reviewed:
Methodology
Estimates bridge loan interest, origination fees, carrying costs, and net sale proceeds when buying before selling an existing home.
Limitations
Not a lender quote. Bridge terms, reserves, sale timing, and payoff rules vary by lender and local market conditions.
Official sources
How Bridge Loan Costs Are Estimated
A bridge loan covers the gap when you buy a new home before your current one sells — typically 6-12 months at higher rates than a standard mortgage. On a $350,000 bridge at 9.5% for 12 months, interest-only payments run about $2,771/month plus origination fees. This calculator totals interest, fees, and dual-home carrying costs.
Method used
This calculator estimates bridge loan interest as principal times monthly rate over the term, adds an origination fee percentage, combines carrying costs for the overlap period, and shows net sale proceeds after paying off the current mortgage and bridge balance.
Monthly interest = bridge amount × (APR ÷ 12); total bridge cost = (monthly interest × months) + origination fee
Practical example
Example: a $350,000 bridge loan at 9.5% for 12 months with a 1.5% origination fee costs about $33,250 in interest plus $5,250 in fees before carrying costs on the old home.
- $350,000 bridge loan, 9.5% APR, 12-month term
- 1.5% origination fee
- $280,000 current mortgage, $420,000 expected sale proceeds
- $850 monthly carrying cost
The output shows monthly interest, total interest, origination fee, carrying costs, all-in cost, and net proceeds after payoff.
Assumptions
- Bridge loan is interest-only during the entered term.
- Expected sale proceeds and carrying costs are user estimates.
- Origination fee is a percentage of the bridge loan amount.
What this includes
- Monthly interest, total interest, origination fee, carrying costs, all-in cost, and net proceeds after payoff.
What this excludes
- Dual-mortgage qualification, extension fees, prepayment penalties, listing delays, and lender-specific bridge product rules.
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Frequently Asked Questions
What is a bridge loan in real estate?
A bridge loan is short-term financing that lets you access equity in your current home to fund a down payment on a new property before the old home sells. Bridge loans usually last 6-12 months, carry higher interest rates than conventional mortgages, and often require interest-only payments. They bridge the timing gap between buying and selling.
How much does a bridge loan cost?
Costs include monthly interest (often 8-12% annual rate), origination fees (1-2% of loan amount), and carrying costs on both properties — taxes, insurance, HOA, and utilities. On a $350,000 bridge for 12 months at 9.5%, total interest alone exceeds $33,000 before fees. This calculator sums all components.
When should I use a bridge loan vs waiting to sell?
Use a bridge loan when you need to move quickly — job relocation, competitive market, or contingent-free offers — and have sufficient equity. Waiting to sell first avoids bridge costs but risks losing the new home. Compare total bridge cost here against rental or temporary housing alternatives.
Are bridge loan payments interest-only?
Most bridge loans require interest-only monthly payments with the principal due when your current home sells. Some lenders allow rolling bridge interest into the new mortgage. This calculator assumes interest-only payments over the entered term.
What happens if my home does not sell in time?
If your home does not sell before the bridge term ends, you may need to extend the loan (often at a fee), refinance into a longer-term product, or pay off the bridge from other assets. Build a buffer into your timeline and confirm extension terms with your lender before committing.