| hope of getting into the home you want, first consider a bridge loan. A bridge loan is a form of second trust that is collateralized by your present home in a manner that allows the proceeds to be used for closing on a new house before the old house is sold. A bridge loan "bridges" the gap between the two transactions and is often the difference between getting the house of your dreams and missing out entirely. Bridge loans can also be setup to completely pay off the old mortgage or to add the new mortgage to your current debt. Usually people who take out a bridge loan will use the funds to pay off the old mortgage while putting the rest towards the new home's down payment, first deducting any closing costs and prepaid interest. Typically, the loan is structured with a relatively short term, usually six months to a year, and hefty prepaid interest. Because of the risk involved in making a loan on collateral with only possible |
