What does 'bridge a mortgage' mean ?

Asked by Gina Rosa, Miami, FL Tue Dec 15, 2009

A realtor once used this phrase and I'm not clear on it. Does it mean combine it with an existing mortgage ?

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Alan May, Agent, Evanston, IL
Tue Dec 15, 2009
Gina - they may have been talking about a "bridge loan" (also known as an 'interim loan')

A loan that "bridges" the gap between the purchase of a new home and the sale of a current or existing home. The current home is used as collateral and the bridge loan is used to pay closing on the new home before the current home is sold. ...

They were once popular in a market where it was advisable to purchase the 2nd home, prior to selling the 1st. They're no longer that popular, as you might imagine.
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