Money issues can be stressful, particularly if they are tied to your residence. Working with a mortgage loan provider that has experience makes the process much less stressful. One particular type of financing where you want to work with an expert is when applying for bridge loans in Boston, MA.
What is a Bridge Loan?
A bridge loan differs from a conventional loan in several ways. It is a short-term loan used to bridge the gap in financing. It is not meant to last the life of the mortgage, instead, it is used while an individual manages existing obligations and then refinanced as a conventional loan.
Because bridge loans are not meant for long-term financing and are considered riskier than traditional mortgages, the interest rate on them is higher than on a conventional loan. You will need collateral, such as real estate, to back the loan. The term of a bridge loan is typically less than one year.
The most common use of a bridge loan is so an existing homeowner can purchase a new home without waiting for their current home to sell. The homeowner can use the equity in the current home as the downpayment for the new home. While waiting for your home to sell you will be responsible for two mortgages, the one repaying the bridge loan and the existing mortgage.
It is important to work with a lender who is experienced with bridge loans in Boston, MA, such as Harper Financial LLC. They will be able to negotiate the best terms and have a process in place to convert the bridge loan to a conventional loan when the time comes. When you are ready to buy, get in touch with Harper Financial LLC. They can walk you through the process.
