Bridge Loan Calculator

A bridge loan lets you purchase your next home before your current home sells — eliminating the need for a sale contingency that could weaken your offer in a competitive market. It's secured by the equity in your departing home and structured as a short-term, interest-only loan.

Worked example: Your current home in Lake Oswego is worth $800,000 with a $250,000 mortgage. Maximum bridge at 80% LTV: ($800,000 x 0.80) - $250,000 = $390,000. You need $350,000 for the down payment on your new home. Bridge rate: 8.50%. Monthly interest-only payment: $2,479. If your old home sells in 4 months, total bridge cost is $9,917 in interest plus $7,000-$14,000 in origination fees (2-4%) — approximately $17,000-$24,000. Compare to sell-first-then-rent: 4 months at $3,500/month ($14,000) plus two moves ($4,000-$6,000) = $18,000-$20,000. The costs land in roughly the same range, so the real payoff is not savings but position: a non-contingent offer that competes with cash buyers, one move instead of two, no scramble for a short-term rental, and time to prepare and stage your old home for top dollar.

**How the bridge loan payment is calculated.** Most bridge loans are interest-only, so the monthly payment is simply loan amount × annual rate ÷ 12. A $350,000 bridge at 8.50% is $350,000 × 0.085 ÷ 12 = $2,479 per month. Total carrying cost = monthly payment × months held + closing costs. Because there is no prepayment penalty, you only pay interest for the months you actually carry the loan — sell in 60 days and you pay about two months of interest.

**What a bridge loan really costs.** Beyond interest, budget for an origination fee (commonly 2–4% of the loan amount), an appraisal on the departing home, title and escrow, and recording fees. On a $350,000 bridge that is roughly $9,000–$16,000 in upfront costs. Some structures trade a slightly higher rate for lower fees — on a loan you expect to hold only a few months, lower fees usually win, so compare the total cost, not just the rate.

**How bridge loan rates are priced.** Bridge rates sit above 30-year fixed mortgage rates because the loan is short-term and secured by a home that is about to be sold. Pricing depends on your combined loan-to-value, credit (best pricing with strong credit (740+)), how quickly the departing home is likely to sell, and whether it is already listed or under contract. Rates in California and Oregon follow the same logic; see Oregon bridge loans and California bridge loans for state-specific detail.

**When a bridge loan is not worth it.** If your departing home has thin equity (under about 20–25%), if the local market is slow and days on market are climbing, or if you can comfortably make a contingent offer or rent back from your buyer, the bridge may cost more than it saves. Run both scenarios in the calculator — if sell-first-then-rent comes out cheaper and you are not losing homes to non-contingent offers, skip the bridge.

**Bridge, bridging or bridge financing — same calculator.** 'bridging loan' is the common UK term and 'bridge financing' is often used for commercial deals, but the math is identical: equity-based loan amount, interest-only payment and a planned exit. For apartment and mixed-use properties, see multifamily bridge loans.

The calculator computes your maximum bridge amount, total interest cost, and compares bridge vs. temporary housing side by side.