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, interm mortgage, open mortgage loan, short-term finance, temporary financing
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.
