Bridge Mortgage

Definition

  • A bridge mortgage is a short-term or interim mortgage loan that allows the borrower to purchase a replacement home before their currently owned one can be sold. A six month or one year term is common for a bridge mortgage.

Synonyms
short-lived loan, short-term finance, interm mortgage, temporary financing, open mortgage loan

Related Terms and Acronyms

  • Bridge Financing Definition,
    • A short-term, high interest loan that allows a seller to purchase a new property before selling an existing property.
  • Interim Financing Definition,
    • The availability of funds on a daily basis to assist a developer with financing for a construction project between advances made by the lender of the construction loan.
  • Loan Term Definition,
    • The period specified in the promissory note for a borrower to pay a loan, such as a mortgage. Most conventional mortgages have a loan term of 5 or 10 years.
  • Open Mortgage Definition, Important,
    • A mortgage that can be paid off prior to maturity without penalty.
  • Variable Rate Mortgage (VRM) Acronym, Very Important,
    • Home loan in which the interest rate is changed periodically based on a standard financial index. Also called an "Adjustable-rate Mortgage."
    A type of mortgage loan offered by brokers and lenders.
Compare. Calculate. Apply today.
Compare Mortgage RatesMortgage CalculatorsApply for a Mortgage