Bridge loans, sometimes known as swing loans, are short term loans intended to access trapped home equity for the purchase of buying a new home.  For example, if John and Mary Homebuyer have their current home for sale and will net $200,000 (equity) after paying their selling costs and current mortgage.  That $200,000 will be the down payment on their new home.   John and Mary do not have their current home sold yet, but they find their dream home for $500,000 and they need to close next month.  John and Mary cannot count on selling their existing home in time, but expect it will sell soon.  The challenge is they need to get that $200,000 in trapped equity to the closing table in the form of cash when they settle on their dream home – the bridge loan accomplishes this.  Bridge loans are intended to be made on a home that will be for sold in the short term, otherwise a standard home equity loan would do the job.

Call the mortgage line, Dan Thierry at Dominion Mortgage at 610-614-1903 or visit www.dominionrates.com.

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