Bridge Loan Calculator 2026

Bridge loan rates in 2026 typically range from 8.5% to 12%, averaging around 9.5%. They are usually priced at prime rate plus 2-4%. Bridge loans are short-term (1-12 months) and interest-only, so you only pay interest during the bridge period, not principal.

Bridge loans are interest-only. Monthly payment = Bridge Loan Amount × (Annual Rate ÷ 12). Example: $200,000 bridge loan at 9.5% = $200,000 × (0.095/12) = $1,583/month. You repay the full principal when your current home sells.

Most lenders allow up to 80% of your current home's equity as a bridge loan. Formula: (Current home value × 80%) minus remaining mortgage balance. Example: $450K home, $220K mortgage = ($360K - $220K) = $140K max bridge loan.

Bridge loans for homes are offered by: regional banks, credit unions, hard money lenders, and some online mortgage lenders. Not all big banks offer them. Best strategy: compare at least 3-4 lenders, as rates and fees vary significantly. Some lenders charge 1-3% origination fees on top of the rate.

Typical bridge loan requirements: minimum 20% equity in current home, combined LTV of 80% or less, credit score 650+ (720+ for best rates), proof of income/employment, a contract on your current home or solid plan to sell. The home being sold usually serves as collateral.

A bridge loan is worth it when: (1) you found your dream home before selling, (2) the housing market is competitive and you need a non-contingent offer, (3) you can afford the dual payments for a few months. The cost is typically $3,000-$8,000 total for a 6-month bridge on a $200K loan. Compare that to losing a home in a bidding war.