Mortgage Bridge Loan Calculator

Bridge loans cover 6–12 month gap between buying new home and selling current one.

Current home value

Current mortgage balance

New home price

Bridge rate %

Origination fee %

Expected hold months

Total bridge cost

$10,150

Bridge loan amount

$140,000

Monthly interest

$1,225

How the math works

Bridge = min(80% equity, 20% new home). Interest = bridge × monthly rate. Total = interest × months + origination.

Equity $300k × 80% = $240k bridge × 10.5%/12 = $2,100/mo × 6 = $12.6k + $4.8k orig = $17,400 total.

How to Use

Enter current home value.
Enter current mortgage balance.
Enter new home price.
Enter bridge rate %.
Enter origination fee %.
Enter expected hold months.
Read total bridge cost.

Frequently Asked Questions

Bridge loan economics?

Loan amount: 70–80% combined LTV on both homes. Rate: 8–14% (premium to standard mortgage). Origination fee: 1.5–3%. Term: 6–12 months typical, 24 max. Interest-only payments common. Repaid from sale of current home. Risk: current home doesn't sell at expected price/timeline. Alternative: HELOC on current home (cheaper but slower funding), 80/10/10 with delayed sale, contingent purchase offer. Best for: financially-strong buyers in markets where contingent offers don't compete.

How does this debt analysis fit a workout strategy?

Workout, default, and recapitalization decisions depend on the gap between in-place debt and current asset value. Lenders evaluate cure cost, foreclosure timeline + cost, broker price opinion (BPO), and borrower equity. Borrowers evaluate equity in the property, refinance feasibility, and forbearance economics. This calculator provides one input to that multi-factor decision.

Discounted payoff (DPO) vs forbearance vs deed in lieu?

DPO: lender accepts less than full balance to avoid foreclosure cost, common with non-recourse and underwater assets. Forbearance: payment deferral 6–18 months, balance accrues, useful when value will recover. Deed in lieu: borrower transfers title to lender, faster than foreclosure but lender takes full risk. DPO often best when borrower has new capital + lender wants quick exit.

Special servicing dynamics?

CMBS loans transfer to special servicer at default or maturity default. Special servicer compensation aligns with workout, but timeline is 6–24 months and fees stack ($25–250k+ in costs). Whole-loan and balance-sheet lenders move faster but with less flexibility. Bridge and debt fund lenders most flexible. Time-to-resolution and total friction cost should be weighted in any borrower scenario.