What Are Bridge Loan Mortgages

The bridge loans are the quick loans which are generally taken to close the real estate deal quickly. Generally they are available at higher interest rates. The interest rates can be as high as 12-15{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4}. When you get the other loan then you can pay back the bridge loan with an ease and comfort. Thus you will be able to do your job as well as you will be able to pay the loan in time. As far as the time frame is concerned, you should understand that the bridge loans are available for 2 weeks to 3 years.

The main disadvantage as far as the bridge loans are concerned is that the interest rate is quite high. But there are many advantages as well. Suppose you find out that some foreclosure property is available and you do not have the required money. What will you do in that case? You will certainly feel a pinch if you will not be able to arrange the money. You will definitely like to get the money from somewhere and at the same time you would like to make sure that you have not to run to all corners.

If you will look at the market carefully then you will realize that you will just have to pay the money and then you can get anything. Same is the case with the bridge loans. You are paying the higher interest rates and hence, you will find out that you are able to get this loan quite easily.

Most of the application of the bridge loan is in real estate. You will certainly find out that it is the case of the foreclosure or it is the case of the repairing, the bridge loans are certainly quite useful. As far as the loan to value ratio is concerned, it is around 65{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} for the commercial properties and it is around 80{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} for the residential properties.

You should know that the bridge loans are quite similar to the hard money loans. With a little bit of research you will find out that both of them are the non standard loans and are taken for small period of time.

These types of mortgage are available at higher LTV. However you can classify these ones on the basis of the LTV as well. Suppose you are going for a first charge bridging loans. You will get them at higher LTV. As far as the second charge LTV are concerned, they are available at lower LTV because of the fact that they are much safer.

This is all about the bridge loans.