An Essential Guide To Bridge Loans in Cincinnati For Beginners
You have been scouting for your dream home and have finally found it. It meets all your requirements in terms of costs, neighborhood, size, and much more. Since you don’t have enough savings to put down the funds for a down payment to close the deal and want to get equity on your current home, now, all that you have to do is apply for a bridge loans in Cincinnati that will provide you equity in your current home before selling it.
Bridge loans will help you avoid the distressed sale of your existing home to buy a new one. There are different ways in which a bridge loan will benefit you. The features of a bridge loan are as follows:
Bridge loans are designed to meet home buyers’ needs. It can be stated as a short-term loan to meet your liquidity requirements while purchasing your new home.
Moreover, a bridge loan will offer you complete peace of mind. You will never have to worry about the sale of your property and shift to a new home.
Further, you can sell your old home at the right price and off the bridge loan. It is a temporary, interest-only home loan secured by your current residence.
This loan is available in addition to the regular home loan. Bridge loans put you in a better position and offer you a maximum loan to value of 85% without mortgage insurance.
How Does A Bridge Loan Function?
The bridge loan can be explained in the following way:
In the first case you can either pay off the liens on your existing property or,
In the second scenario, you can use a second mortgage on top of the liens.
If you are paying off the mortgage on your current home, the remaining amount can be used to pay the down payment for your new home. Instead of making monthly EMIs on loans, you will be making mortgage payments on your new home.
In comparison, if you are using a second mortgage on top of the liens, you will be making mortgage payments for the existing home as well as the new home.
When applying for a bridge loan, be cautious and ensure that you can pay off the loan in a short time. It is advised that you look for professional mortgage lenders who can assist you in making the right decision regarding Bridge loans in Indiana.
McBride Mortgage Group offers affordable and flexible home loans designed to suit the requirements of all home buyers. Connect with them today to explore McBride Mortgage Group’s wide range of home loans at competitive interest rates.