There are different reasons why you may be interested in bridge loans in Boston, MA. Bridge loans are often the best idea for various circumstances, however, they are often something borrowers are not that familiar with.
What is a Bridge Loan?
A bridge loan is short-term. It can be for as short as a few weeks up to several years. The loan is meant to bridge the gap while additional, more traditional, financing is secured. Bridge loans in Boston, MA are often used when you want to purchase a new home before your existing home has sold. Interest rates and fees are often slightly higher with bridge loans than in conventional loans. This is because, to the lender, a bridge loan has a higher risk.
If you are trying to sell your home and purchase a different one, the stress of attempting to synchronize the closings can be tremendous. Carrying two mortgages is not something most people want to do either. If your home hasn’t sold yet, but you find a new purchase that you fall in love with, it makes sense to buy. Properties don’t often stay on the market for long in a hot market.
Using a bridge loan allows you to qualify for the purchase loan while still having an existing mortgage. When your home sells, you can then refinance your new home into a conventional purchase.
The many options available in lending can be overwhelming, and it can be a challenge to determine what option makes the most financial sense. If you are interested in learning more about bridge loans in Boston, MA, talk to Harper Financial. They are experienced in all types of alternative mortgages and would be happy to discuss the details with you.
