If you’re trying to buy a new home before selling your current one, a bridge loan can help you access your existing home equity to fund your next purchase. But how much might your bridge loan cost? How do you calculate your monthly payment? How much equity can you actually access?
Our Bridge Loan Snapshot Tool is designed to help answer those questions.
While every lender structures bridge loans differently, this interactive estimator can help you visualize how bridge financing works, including estimated proceeds, monthly interest payments, and the balloon payment due when the loan is repaid.
What does this bridge loan estimator show?
The Bridge Loan Snapshot Tool provides a simplified example of how a bridge loan might fit into your overall home equity picture.
Monthly interest-only payment
Many bridge loans require interest-only payments during the loan term. This estimate shows what your monthly payment might look like based on the loan amount, rate, and term selected.
Available bridge proceeds
This estimate shows how much equity may be available to access based on your home’s value, the current payoff amount on your mortgage, and the selected loan-to-value ratio.
Balloon payment
Bridge loans are typically repaid in a lump sum when your current home sells. This figure shows the estimated balance that would be due at payoff.
Total interest
This estimate illustrates how much interest could accumulate over the selected loan term.
What costs are included?
This tool is designed to provide a simplified snapshot of bridge financing costs. It includes some common bridge loan expenses, but not every fee a lender may charge.
| Included in the estimate | Not included in the estimate |
| Estimated monthly interest payment | Appraisal fees |
| Estimated total interest | Title fees |
| Estimated bridge proceeds | Legal or attorney fees (where applicable) |
| Estimated balloon payment | Lender-specific closing costs |
| Estimated origination fee | Other lender fees and reserves |
This tool is intended for educational purposes only and should not be considered a loan quote or lending offer.
Start Making Offers Without Waiting to Sell Your Home
Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.
How much does a bridge loan cost?
Bridge loan costs vary depending on the amount borrowed, the lender, your available equity, and how long it takes to sell your current home.
Most bridge loans include two primary costs:
- Interest charges
- Lender fees, such as origination fees and closing costs
Because bridge loans are designed as short-term financing, interest rates are often higher than those of traditional mortgages. The longer you carry the loan, the more interest you’ll typically pay.
While costs vary, the Bridge Loan Snapshot Tool can help you understand how different loan amounts, rates, and repayment timelines may affect your estimated payment and payoff amount.
How do bridge loan payments work?
Unlike a traditional mortgage, bridge loans are often structured with interest-only payments during the loan term.
Here’s a simplified example:
- You borrow against the equity in your current home.
- You make interest-only payments while your home is on the market.
- When your home sells, you use the proceeds to repay the bridge loan in a lump sum.
Because bridge loans are intended to be temporary, terms commonly range from six months to one year.
Is there a simpler way to buy before you sell?
A bridge loan is one option for accessing home equity before selling your current home, but it’s not the only one.
Today, some homeowners choose modern Buy Before You Sell programs that are specifically designed to solve the challenge of buying and selling at the same time.
These programs can help homeowners:
- Access home equity before selling
- Make non-contingent offers
- Move only once
- Avoid temporary housing and storage costs
- Sell after moving into their next home
How HomeLight Buy Before You Sell works
HomeLight’s Buy Before You Sell program helps homeowners unlock a portion of their equity before selling, allowing them to purchase their next home with greater flexibility.
- Unlock your equity
Get approved to access a portion of the equity you’ve built in your current home.
- Buy your next home
Use your unlocked equity to make a stronger offer without a home sale contingency.
- Sell after you move
Move into your new home first, then prepare and sell your previous property after you’ve moved out.
Because your home is vacant, it may be easier to complete repairs, stage rooms, schedule showings, and attract strong offers.
Visit homelight.com/buy-before-you-sell to learn more or get started.
Calculate and consider your bridge loan options
- Bridge loans can help homeowners access equity before selling their current home.
- Monthly payments are often interest-only, with repayment due when the home sells.
- The Bridge Loan Snapshot Tool provides a simplified estimate of payments, proceeds, and payoff costs.
- Actual bridge loan costs vary by lender and loan structure.
- HomeLight’s Buy Before You Sell program offers another way to unlock equity and buy before selling.
Whether you choose a traditional bridge loan or a Buy Before You Sell program, both strategies can help you buy your next home before selling your current one. If you’re ready to make a move, HomeLight can connect you with a trusted local real estate agent familiar with bridge loans and other buy-first strategies.
Learn more about buying before you sell
Who Offers Bridge Loans? Tips for Sellers Trying to Buy
How to Buy a House While Selling Your Own
I Want to Buy a New House. Do I Have to Get a Bridge Loan?
Editor’s note: This tool and article are intended for educational purposes only and should not be considered financial advice, a loan offer, or a commitment to lend. Loan products, rates, fees, and qualification requirements vary by lender.