Bridge loans
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Anonymous
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Anyone have experience using a bridge loan and/or recommend a lender?
I want to pay cash for next house, but need the equity from current house, and don’t want to rent temporarily. |
Anonymous
| We did this recently, and used First Savings Mortgage. The interest rate was around 9.9%. |
Anonymous
| Thanks, do you mind sharing the upfront costs (% of loan) and if your overall experience was positive? |
Anonymous
| Why not get a mortgage on the 2nd house and pay it off when you sell your first one? That's what we did. |
Anonymous
Not OP but cash is helpful when you need to win a bidding war. |
Anonymous
We took out a HELOC on our first home to use as cash. We paid it back when we sold the first home. |
Anonymous
| OP here. Did the HELOC cover the full purchase price of new home? If I went this route would have to supplement by liquidating assets, which I don’t really want to do. |
Anonymous
| Why do you want to pay cash? If you income suffices, you could get a HELOC on the current house and a mortgage on the new one (waiving finance and appraisal contingency, and maybe more), and pay both off with the proceeding of the sale. |
Anonymous
| Will look into it. Guess my understanding was that a cash offer would beat out those other financing combinations |