{
  "id": "bridge-loan",
  "version": "33448937b099",
  "status": "published",
  "name": "Bridge Loan Calculator",
  "question": "What will a bridge loan cost?",
  "summary": "Works out how much you can borrow on a bridge loan against the home you are selling, the monthly interest-only payment, the fee, and the total cost until the home sells.",
  "category": "finance",
  "subcategory": "loans",
  "url": "https://www.acalculator.org/finance/bridge-loan-calculator",
  "markdown": "https://www.acalculator.org/finance/bridge-loan-calculator.md",
  "kind": "function",
  "method": "Most you can borrow = value × LTV limit − mortgage owed; monthly payment = amount × rate ÷ 12; fee = amount × fee %; interest = payment × months; cost = fee + interest. All in exact decimals.",
  "assumptions": [
    "Interest only, paid monthly at the yearly rate ÷ 12; the whole amount is repaid when the home sells.",
    "The fee is paid at closing out of the loan. Other closing costs, appraisal fees and the payments on your current mortgage are not included.",
    "Some bridge loans add the interest to the balance instead of charging it monthly; ask your lender.",
    "Type the rate and limit your lender quotes; no live rates."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "value": {
        "title": "Value of the home you are selling",
        "description": "What your current home is worth.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1000,
        "maximum": 1000000000
      },
      "owed": {
        "title": "Mortgage owed on it",
        "description": "What you still owe on the current home.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000
      },
      "ltv": {
        "title": "Lender’s loan-to-value limit",
        "description": "The most the lender lets the mortgage and bridge loan add up to, as a percent of the home value.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 1,
        "maximum": 100
      },
      "amount": {
        "title": "Bridge loan amount",
        "description": "How much you want to borrow, for example the down payment on the next home.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1,
        "maximum": 1000000000
      },
      "rate": {
        "title": "Interest rate",
        "description": "The yearly rate. The monthly interest is the amount × rate ÷ 12.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 40
      },
      "months": {
        "title": "Months until the home sells",
        "description": "How long you keep the bridge loan; it is repaid from the sale.",
        "type": "integer",
        "minimum": 1,
        "maximum": 36
      },
      "fee": {
        "title": "Origination fee",
        "description": "The lender’s fee as a percent of the loan, paid at closing.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 10
      }
    }
  },
  "outputs": {
    "payment": {
      "label": "Monthly interest-only payment",
      "description": "Amount × rate ÷ 12.",
      "format": "money"
    },
    "max": {
      "label": "Most you can borrow",
      "description": "Home value × loan-to-value limit − mortgage owed.",
      "format": "money"
    },
    "fees": {
      "label": "Origination fee",
      "description": "Amount × fee percent.",
      "format": "money"
    },
    "interest": {
      "label": "Interest until the sale",
      "description": "Monthly payment × months.",
      "format": "money"
    },
    "cost": {
      "label": "Total cost of the bridge loan",
      "description": "Fee + interest.",
      "format": "money"
    },
    "cash": {
      "label": "Cash you receive",
      "description": "Amount − origination fee.",
      "format": "money"
    },
    "balloon": {
      "label": "Repaid from the sale",
      "description": "The whole amount, due when the home sells or the loan ends.",
      "format": "money"
    },
    "combined": {
      "label": "Combined loan-to-value",
      "description": "(Mortgage owed + bridge loan) ÷ home value.",
      "format": "percent"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "value": 500000,
      "owed": 200000,
      "ltv": 80,
      "amount": 150000,
      "rate": 9,
      "months": 6,
      "fee": 2
    },
    "outputs": {
      "payment": 1125,
      "max": 200000,
      "fees": 3000,
      "interest": 6750,
      "cost": 9750,
      "cash": 147000,
      "balloon": 150000,
      "combined": 70
    },
    "text": "A $150,000.00 bridge loan costs $1,125.00 a month in interest and $9,750.00 in all until the home sells."
  },
  "examples": [
    {
      "given": {
        "value": 500000,
        "owed": 200000,
        "ltv": 80,
        "amount": 150000,
        "rate": 9,
        "months": 6,
        "fee": 2
      },
      "expect": {
        "max": 200000,
        "payment": 1125,
        "fees": 3000,
        "interest": 6750,
        "cost": 9750,
        "cash": 147000,
        "combined": 70
      },
      "source": "hand calculation in content.mdx: 500,000 × 80% − 200,000 = 200,000; 150,000 × 9% ÷ 12 = 1,125; Consumer Financial Protection Bureau, Regulation Z, 12 CFR 1026.43(a)(3)(ii): a temporary or \"bridge\" loan with a term of 12 months or less, such as a loan to buy a new dwelling where the consumer plans to sell a current dwelling within 12 months, https://www.consumerfinance.gov/rules-policy/regulations/1026/43/ (retrieved 2026-10-05); Consumer Financial Protection Bureau, What is a home equity loan? (equity is the amount the property is worth minus any existing mortgage), https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-loan-en-106/ (retrieved 2026-10-05)"
    },
    {
      "given": {
        "value": 750000,
        "owed": 350000,
        "ltv": 75,
        "amount": 200000,
        "rate": 10.5,
        "months": 12,
        "fee": 1.5
      },
      "expect": {
        "max": 212500,
        "payment": 1750,
        "fees": 3000,
        "interest": 21000,
        "cost": 24000
      },
      "source": "hand calculation in content.mdx: 750,000 × 75% − 350,000 = 212,500; 200,000 × 10.5% ÷ 12 = 1,750; Consumer Financial Protection Bureau, Regulation Z, 12 CFR 1026.43(a)(3)(ii): a temporary or \"bridge\" loan with a term of 12 months or less, such as a loan to buy a new dwelling where the consumer plans to sell a current dwelling within 12 months, https://www.consumerfinance.gov/rules-policy/regulations/1026/43/ (retrieved 2026-10-05)"
    },
    {
      "given": {
        "value": 400000,
        "owed": 0,
        "ltv": 80,
        "amount": 100000,
        "rate": 0,
        "months": 3,
        "fee": 0
      },
      "expect": {
        "payment": 0,
        "cost": 0,
        "balloon": 100000,
        "combined": 25
      },
      "source": "hand calculation in content.mdx: no rate or fee costs nothing; 100,000 ÷ 400,000 = 25%"
    }
  ],
  "sources": [
    "Consumer Financial Protection Bureau, Regulation Z, 12 CFR 1026.43: minimum standards for transactions secured by a dwelling (temporary or bridge loans of 12 months or less). https://www.consumerfinance.gov/rules-policy/regulations/1026/43/ (retrieved 2026-10-05)",
    "Consumer Financial Protection Bureau, What is a home equity loan? https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-loan-en-106/ (retrieved 2026-10-05)"
  ],
  "related": [
    "interest-only-loan",
    "home-equity-loan",
    "mortgage",
    "hard-money-loan"
  ],
  "changelog": []
}