A Bridge Loan* is a short-term loan, typically less than a year, that “bridges” the gap between the purchase of your new home and the sale of your current home. This can be a big advantage in today’s competitive home buying market!
Increasing your down payment or even bringing an all-cash offer to the table
Presenting an offer that isn’t contingent on selling your current home
Possibly eliminate paying Private Mortgage Insurance (PMI)
Avoid liquidating or borrowing against your 401(k)
Not cross-secured by the new home purchased
A Bridge Loan is not counted against you when qualifying for a new loan financed by Melrose Bank
Questions? Call 781.665.2500
* Variable rate equal to the Prime Rate published in the Wall Street Journal (currently 5.00% as of September 30, 2019) plus 1.00%. Annual Percentage Rate (APR) subject to change without notice. $100,000 Bridge Loan would result in up to 36 interest-only payments ranging from $493.15-$509.58 per month followed by a lump sum payment of $100,000. Your minimum payments will not repay the principal that is outstanding on your line. You will be required to pay the entire outstanding balance in a single payment after 36 months or upon the sale of the home, whichever comes first. Interest may be tax deductible, consult your tax advisor.