Bridge Mortgage Loan

With today's more mobile society, there's a need for a
bridge mortgage loan. Families are moving more often,
requiring more flexible terms for loans on homes. These
types of loans are unique from just about every other
mortgage loan because they are extended for only a short
time, normally a year, and are designed for that period
between putting a house up on the market and actually
selling it.

Like everything else, there are pros and cons to using a
bridge mortgage loan during the sale process.

Pros of a Bridge Mortgage Loan

The first positive thing about a bridge mortgage loan that
can't be overlooked is how convenient it is to have a
temporary loan set in place for the time in between selling
your old home and buying a new one. Depending on the lender
and how this type of mortgage loan is set up, you can
choose to pay off the existing loan and the extra money
after interest and closing costs can be used for a down
payment on the new home.

Typically a bridge mortgage loan only lasts for a year and
when you sell your home, the loan is automatically paid
off. Another enticing aspect of bridge mortgage loans is
that if you haven't sold your home in 6 months, you have
the option of making interest only payments on the house;
in effect buying you more time to sell the old house.

Cons of a Bridge Mortgage Loan

Let's face it; no one really wants to deal with at least
three mortgage loans in a short period of time. You will
have your current home mortgage loan, the bridge mortgage
loan, and the new house loan to contend with within the
span of a year's time. Another feature some people would
consider a drawback is that you must use the same lender
for your new home mortgage as you did for the bridge
mortgage loan.

This type of loan isn't for everyone considering that
bridge mortgage loans often come with higher mortgage fees
and interest rates. For those who simply don't find it
economical to handle the selling of their home in this
manner, you can always consider borrowing against your 401K
plans or liquidating other assets to get you and your
family through the transition stage. Some people have also
had success by taking out personal loans by securing the
transaction with currently held stocks.

There are options out there for making your life easier
during the selling and buying of your homes. Bridge
mortgage loans are incredibly beneficial under the right
set of circumstances.

----------------------------------------------------
Since 2000 Ron has been on a mission to help people
continue their dream. He helps people refinance from an
adjustable rate and the uncertainty that brings to a solid
fixed rate,as well as refinancing to help people get cash
out for a variety of reasons. Mainly he enjoys helping
people KEEP their dream.
http://www.refi-ron.com