Bridge Loan Calculator
Found the next house before the current one sold? Enter your existing home's value, what you still owe, and the new purchase price to see what a bridge loan actually costs — the interest-only monthly payment, the up-front origination fee, and the total cost to borrow.
Your Two Homes
What the home you're selling should appraise at.
Enter 0 if the home is paid off.
Used to show what share of it the bridge covers.
Bridge Loan Terms
Borrow only what the new down payment needs.
How long until the old home sells.
Typically above first-mortgage rates.
Charged on the loan amount, paid up front.
Appraisal, title, escrow, admin fees.
Cap against the home you're selling.
Monthly Bridge Loan Cost
$1,425
Interest-only on $180,000 at 9.5%. The principal is repaid in one lump when your old home sells — and you still owe your existing mortgage payment on top of this.
Interest Over 6 Months
$8,550
If it sells on schedule
Up-Front Fees
$5,200
1.5% origination + closing
Total Cost to Borrow
$13,750
Interest + all fees
What This Bridge Covers
A bridge loan is sized against the equity in the home you're selling, and the cash goes toward the down payment on the new one.
Maximum bridge loan at 80% CLTV
$270,000 in equity today · 80% of $450,000 minus your $180,000 balance.
$180,000
$180,000 is 30.0% of the $600,000 new home — enough for the down payment if you need 20%down. Anything the bridge doesn't cover has to come from savings.
Bridge Loan vs. HELOC vs. Home Equity Loan
All three turn the equity in your current home into a down payment on the next one. The difference that decides it for most buyers isn't cost — it's whether your home is already listed. Once a property is on the market, most lenders stop writing HELOCs and home equity loans against it, which is exactly the situation bridge loans exist for.
| Bridge Loan | HELOC | Home Equity Loan | |
|---|---|---|---|
| Typical term | 6–12 months | 10-year draw + repayment | 5–20 years |
| Monthly payment | Interest-only (or deferred) | Interest-only during draw | Fully amortizing |
| Relative rate | Highest | Lower, variable | Lower, fixed |
| Up-front fees | 1–2% origination + closing | Often none | Low (0–2%) |
| Home already listed? | Fine — designed for it | Usually disqualifying | Usually disqualifying |
| Speed to fund | Days to a few weeks | Several weeks | Several weeks |
The practical sequence: if you're more than a month from listing, open a line of credit now and draw on it later — price one with the HELOC calculator. If you want a fixed lump sum instead, the home equity loan calculator runs those numbers. A bridge loan is what's left when the timing has already closed those doors.
When a Bridge Loan Makes Sense
A bridge loan is an expensive tool that buys one specific thing: timing. It's worth the cost when the timing itself has real value.
- You need a non-contingent offer.In a competitive market, an offer contingent on selling your current home loses to a clean one. A bridge removes the contingency, and the sellers' agent knows it.
- You can't move twice. Selling first means a rental, a storage unit, and two moves. Several months of bridge interest can genuinely cost less than that — and far less in disruption.
- Your equity is large and your sale is likely fast. The math works best with lots of equity in a market where homes move in weeks, not seasons. That combination keeps the term short and the total cost contained.
- The new home is genuinely one-of-a-kind.A school district, a lot, a price that won't repeat — paying a few thousand to not lose it is a defensible trade.
It makes much less sense when your current home is priced optimistically, when your local market is slow, or when the bridge payment plus both mortgages would strain your budget if the sale slipped a few months. Run that worst case before you sign: set the term to 12 or 18 months in the calculator above and see whether the total still looks acceptable.
If you're considering keeping the old home instead of selling it, that's a different loan entirely — see the second home mortgage calculator. And if pulling cash out of the current home before you list is still on the table, compare it against your existing rate with the refinance calculator.
Typical Bridge Loan Rates and Fees
Bridge loans are short-term, higher-risk, and priced accordingly. They're also less standardized than mortgages — terms vary widely between lenders, so the figures below describe the shape of a typical quote rather than a rate you should expect. Get real quotes and put those into the calculator.
| Charge | Typical range | What to watch |
|---|---|---|
| Interest rate | 1–3 points above first-mortgage rates | Whether it's fixed for the term or floats |
| Origination fee | 1–2% of the loan amount | On a short term this can exceed the interest |
| Appraisal, title, escrow | A few thousand dollars | Charged twice if you also finance the new home |
| Extension fee | Charged if the term runs out | Get the extension terms in writing up front |
| Minimum interest | Some lenders guarantee 1–3 months | Kills the savings from a fast sale |
Two quotes at the same rate can differ by thousands once fees are in. Compare on total cost to borrow — the third box in the calculator above — not on the headline rate. The closing costs calculator covers the fees on the new purchase itself, which land in the same month.
Recommended reading
Books on home equity & refinancing
Borrowing against your home is one of the larger financial decisions you can make — these guides cover the mechanics, the tradeoffs, and the negotiating points so you walk into the conversation with the lender prepared.
The Home Equity Loan Handbook
Practical guides on tapping home equity
Plain-English explanations of how home equity loans, HELOCs, and cash-out refinances actually work — and how to compare offers without getting steered.
Mortgages For Dummies
Eric Tyson & Ray Brown
Covers refinancing, second mortgages, HELOCs, and the math behind each — useful background before you sign anything.
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Frequently Asked Questions
How much does a bridge loan cost?
Three charges make up the total: interest, an origination fee, and ordinary closing costs. Bridge loans are usually interest-only, so the monthly payment is simply the balance times the annual rate divided by 12 — on a $180,000 bridge at 9.5% that's about $1,425 a month. The origination fee typically runs 1% to 2% of the loan amount and is paid up front, and appraisal, title, and escrow fees add a couple thousand more. Because the term is short, the fees often outweigh the interest: a six-month $180,000 bridge might cost roughly $8,550 in interest but $2,700 in origination plus closing costs on top. Enter your own numbers in the calculator above for the full picture.
How much can I borrow with a bridge loan?
Lenders size a bridge loan against the equity in the home you're selling, capped at a combined loan-to-value of roughly 75% to 80%. Multiply the existing home's value by that cap and subtract your current mortgage balance: on a $450,000 home with a $180,000 mortgage at an 80% cap, that's ($450,000 × 0.80) − $180,000 = $180,000. Some lenders underwrite against both properties, which can raise the ceiling, and a few will lend against a paid-off home at a higher percentage. You are rarely required to take the maximum — borrow only what the new home's down payment actually needs, since every extra dollar accrues interest.
What happens if my old house doesn't sell in time?
This is the real risk of a bridge loan. Most have a term of 6 to 12 months, and when it matures the full principal is due. If the sale hasn't closed you're typically looking at an extension — often with another fee and sometimes a higher rate — or refinancing the bridge into a longer-term loan. Meanwhile you're carrying three obligations at once: the old mortgage, the bridge interest, and the new mortgage. Before signing, ask the lender in writing what the extension terms are and price your old home to sell rather than to test the market.
Is a bridge loan or a HELOC cheaper?
A HELOC is almost always cheaper if you can get one. HELOCs often have little or no origination fee and carry lower rates, while bridge loans price 1 to 3 points higher and add a 1% to 2% origination charge. The catch is timing: most lenders will not open a HELOC on a home that is already listed for sale, and the approval takes weeks. If your current home is already on the market, a bridge loan may be the only option left. If you're still a month or two out from listing, opening a HELOC first and drawing on it later is usually the lower-cost path.
Do I make monthly payments on a bridge loan?
Usually yes — most bridge loans are interest-only, so you pay the interest each month and repay the entire principal in one lump when the old home sells. Some lenders instead defer all payments and roll the accrued interest into the payoff at closing, which frees up cash flow while you're carrying two homes but costs slightly more overall. A few structure the loan so the proceeds first pay off your existing mortgage, eliminating that payment. Ask which structure you're being quoted, because the monthly cash-flow difference is significant when you're already covering a new mortgage.
Do bridge loans have prepayment penalties?
Most do not, which matters because the entire point is to repay early — the day your old home closes. But some lenders build in a minimum interest period (for example, three months' interest guaranteed even if you pay off in week six). If you expect a fast sale, that minimum can quietly become the dominant cost, so confirm whether one applies before you compare quotes on rate alone.