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What Are Bridge Loans and How Do They Work, bridge loan.#Bridge #loan


What Exactly are Bridge Loans?

Bridge loan

Bridge loans are popular in certain types of real estate markets. Whether bridge loans are a good option for you depends on several factors. The reason buyers take out a bridge loan is to buy another home before selling an existing residence. That may sound like an ideal solution, but a bridge loan is not without risk.

For example, when a home buyer is buying another home before selling an existing home, two common ways to find the down payment for the move-up home is through financing either a bridge loan or a home equity loan (or home equity line of credit).

I advise sellers to wait before buying a home and sell the existing home first, but many feel an urge to locate their move up home first.

If you are absolutely certain your existing home will sell, it will alleviate fears about what happens if it does not. You might want to talk with a trusted advisor before pursuing a bridge loan. The main advantage to a bridge loan is to avoid a contingent offer and make your move-up offer all that more attractive to a seller.

Generally, a home equity loan is less expensive, but bridge loans contain more benefits for some borrowers. In addition, many lenders will not lend on a home equity loan if the home is on the market. Smart borrowers will compare the benefits between the two loans to determine which is a better fit for their particular situation and plan ahead before making an offer to purchase another home.

A major benefit to a bridge loan is the fact it allows you to buy a new home without a contingency to sell.

In seller s markets, many sellers will not accept a contingent offer. If you have a home to sell, that could mean you might not be able to buy a home any other way than without a contingency.

What Are Bridge Loans?

Bridge loans are temporary loans that bridge the gap between the sales price of a new home and a home buyer s new mortgage, in the event the buyer s home has not yet sold.

The bridge loan is secured to the buyer s existing home. The funds from the bridge loan are then used as a down payment for the move-up home.

How Do Bridge Loans Work?

Many lenders do not have set guidelines for FICO minimums nor debt-to-income ratios. Funding is guided by a more make sense underwriting approach. The piece of the puzzle that requires guidelines is the long-term financing obtained on the new home.

Some lenders who make conforming loans exclude the bridge loan payment for qualifying purposes. This means the borrower is qualified to buy the move-up home by adding together the existing loan payment, if any, on the buyer s existing home to the new mortgage payment of the move-up home. The reasons many lenders qualify the buyer on two payments are because:

  • Most buyers have an existing first mortgage on a present home.
  • The buyer will likely close the move-up home purchase before selling an existing residence.
  • For a short-term period, the buyer will own two homes.

If the new home mortgage is a conforming loan, lenders have more leeway to accept a higher debt-to-income ratio by running the mortgage loan through an automated underwriting program. If the new home mortgage is a jumbo loan, most lenders will restrict the home buyer to a 50% debt-to-income ratio.

Average Fees for Bridge Loans

Rates will vary among lenders, but following is an average estimate for a bridge loan in California. Interest rates fluctuate, but for this example, let s use 8.5%. This type of bridge loan will carry no payments for four months; however, interest will accrue and be due when the loan is paid upon sale of the property. Here are sample fees, submitted by an actual mortgage broker*:

In addition, there is a loan origination fee on bridge loans based on the amount of the loan. Each point is equal to 1% of the loan amount. Here are average fees, submitted by a mortgage broker*. Again, fees will vary.



Bridge Loan Calculator, bridge loan.#Bridge #loan


Bridge Loan Calculator

Bridge loans are most commonly reserved for real estate financing though they don’t have to be. A bridge loan is usually a short term loan that provide funds for purchasing an asset (such as a home) when the cash-on-hand along with the primary loan is not enough to pay for the asset.

For example, if you currently have $50,000 cash and a home that you are selling for $400,000 for which there is a balance on the mortgage of $200,000 and you plan to buy a home for $800,000, you might be a candidate for a bridge loan.

If the lending institution for the new mortgage requires that you put a deposit of 20% down, $160,000, at closing, you will not have the cash if the closing has not taken place on your current home. This is where a bridge loan can be used.

-$50,000 cash on hand

-$640,000 mortgage available

$110,000 covered by bridge loan

The new home mortgage will be $640,000 (800,000 – 160,000 = 640,000). The selling price less the cash on hand and the mortgage money available leaves a short of $110,000. This is the amount covered by the bridge loan. A bridge loan is typically an interest only loan. This means you make only interest payments. The loan is also usually a short term loan offered at a higher interest rate. The idea is that once the first property is sold, the bridge loan will be paid off immediately from the $200,000 net proceeds from the sale of the first house.

That’s the background. This calculator will calculate your total payment for the primary new mortgage and the interest only bridge loan payment. The bridge loan has no term for it is due when the closing occurs on the first house. The only thing you have to know about the bridge loan is the annual rate of interest you’ll be charged.

Anticipated Bridge Loan Term? (#) Enter number of months you anticipate needing a bridge loan. That is, how many months you think it will be until you close on the property you are selling. This value does not impact the bridge loan amount. It impacts the payment schedule and charts.

This calculator makes these assumptions:

1) payment for both loans are made monthly

2) the bridge loan is an interest only loan (payments never go toward principal)

Bridge loan



How to Calculate a Bridge Loan, bridge loan.#Bridge #loan


How to Calculate a Bridge Loan

You are moving and you ve found a great house to buy, but there s a problem. Your old property hasn t sold yet. That means you are still making mortgage payments and you can t use the equity in your present home for a down payment. One option to think about is a bridge loan. Bridge loans carry risks, but they can be a way to secure a new property when you don t have time to wait for the old one to sell.

Function of a Bridge Loan

Bridge loans are short-term financing vehicles intended to cover a gap between the time you purchase a new home and sell the old one. Six months is a typical time frame for a bridge loan. Homeowners use bridge loans to obtain cash for a down payment on a new house quickly. Some homeowners choose bridge loans to pay off mortgages and forestall foreclosure. The bridge loan buys these distressed homeowners more time to sell the property instead.

How a Bridge Loan Works

Suppose you are moving because your employer has transferred you. You go to a lender and take out a bridge loan against the equity in your current house to use as a down payment on a new house. The amount you borrow includes points, fees and interest points. Terms of a bridge loan vary. For example, some lenders allow you to borrow enough to pay off your old mortgage. Your current home is collateral for the bridge loan. When the current property is sold, the money pays off the bridge loan.

Calculating Bridge Loans

To calculate a bridge loan, you need to know how much money is required as a down payment on the new property as well as the outstanding balance of the current mortgage. You also need to know the fees and points the lender will charge. Suppose your home is appraised at $250,000 and the lender will allow up to 80 percent of that amount to raise cash and pay off the old mortgage, or $200,000. The current mortgage balance is $150,000. Assume this lender charges 2 points, meaning 2 percent of the bridge loan amount of $200,000. Add 1 percent in prepaid interest and fees. Points and fees come to $6,000. Subtract $6,000 and $150,000 from the $200,000 loan amount. You have $44,000 cash to make a down payment on the new house.

The Upside and Downside

If you need to get out of your old home and mortgage quickly, a bridge loan can be a lifesaver because it can raise the cash to buy the home you want before another buyer beats you to it. However, bridge loans can be expensive. In the example above, the cost is $6,000 plus the interest that accrues until the loan is paid off. Bridge loans also carry risk. Your existing home is collateral and can be foreclosed on if the loan isn t paid. That can happen if the property doesn t sell before the bridge loan comes due or if the housing market turns sour and you are unable to sell for enough to pay off the bridge loan.



Bank Statement Loan, bridge loans.#Bridge #loans


Small Business Loans Depot

Bank Statement Loan

November 14, 2017. Niche bank statement loans program for your business.

Credit scores as low as 500 and lower in some cases.

Time in business as short as only 4 months may be available.

Provide the most recent 3 months complete business checking account statements.

Complete the Secure DocuSign Application.

Get a bank statement loan today based on your company sales. If your business has 3 months of revenue, get business bank statement funding based on sales

Many businesses have excellent cash flow and payment history. Even so, they are often declined because of limited collateral or unsatisfactory personal credit. These businesses feel they should have access to capital.

We agree. Small business loans depot can provide business bank statement financing quickly. Based on your Business revenue, we can get your business the capital it needs within 3 to 5 business days or less.

Bank Statement Loans for businesses

Business Bank Statement loans include the following features:

The highest approval percentage of any business financing.

Every business has Cash flow, many businesses can qualify.

Only 3 months bank statements requested.

Just a short 1 page application is needed.

Fast turnaround, one or two day approval common.

Get your Bank Statement Loan today. Call us now at Tel: 919-771-4177 or Toll Free: 855-787-1113.

Daily, weekly and monthly repayment options are available.

Large business loans available. Programs for a business loan over $100,000, $150,000 and $250,000.

Other documentation may be requested on a case by case basis.

Contact us today. Get your business funded. Start now.

Other bank statement loan features:

Up to 100% of a customer s total monthly deposits may be approved. If your business has average monthly deposits of $50,000, then an approval up to $62,500 may be possible depending on other factors. If the businesses average daily balance is strong, the approval amount can be higher.

Some Bank Statement Loan programs can be used similar to a line of credit. The customer uses the line and repays at their discretion. The customer can use the full line or part of the line amount again immediately. The line can also be left idle for months until it is needed again. This line does not require an annual pay down. Annual or quarterly financial statements are not needed for bank statement financing, also known as an ACH Business loan.

Provide the most recent 3 months business checking account statements. The higher the total deposits per month are, the more the bank statement loan amount may be.

Required to qualify or pre-qualify.

Signed and dated application from 50% of ownership.

Last 3 months complete business bank statements from main business operating

For amounts over $150,000: The most recent 6 months business bank statements

and first page of the most recent business tax return.

Other requirements may apply.

General Requirements for Loan Contracts:

Valid and clear driver s license.

Voided business check for approved account.

Valid E-Mail address for owners.

Federal Tax ID number, or TIN.

Other documentation required on a case by case basis.

Other business bank statement loan customer benefits often available:

New loans may be offered 60 days after closing first loan for certain programs

depending on eligibility.

Renewals and renewal options often begin at 40% pay down of balance.

No standard site inspection for most clients.

Tax Liens $175,000 may be accepted.

Bankruptcies 1 Year usually O.K.

Only 50% ownership required in some cases.

Soft Credit pull for certain programs.

No personal guarantee required for some programs.

Loans are amortized daily for certain programs.

No prepayment penalty for certain programs, if qualified.

The newest option is an open Tax lien business loan under $10,000, which may be approvable. An IRS payment arrangement is not required. 3 month to 12 month terms are available if qualified. Business with an open tax lien and no payment arrangement can be financed.

May 11, 2017, Richmond, VA for immediate release. Union Books completes a $50,000 business bank statement loan. The company determined they needed to make changes with their business operations. Owner Stephen Ivy told the Richmond Bizsense how Union Books will use the funding. We will use this funding to make numerous technology, advertising and and social media changes to boost sales. Local sales opportunities are available using social medial platforms. We expect to increase sales by 15% in the next 12 months and 30% in the next 24 months. We look forward to working with

smallbusinessloansdepot.com for other financing needs in the future. Union Books continues financing transactions to date.

Frequently asked business bank statement financing Questions:

Are all these products about the same?

These products fall under one basic product type. Callers call in with many different requests. Requests from callers include a business bank statement loan and a loan based on bank statements . Other requests from callers include a business loan using bank statements . bank statement loan for business , and bank statement financing are also requested.

What is the maximum we can get?

The bank statement loan line size depends upon the total dollar amount of deposits per month and the average daily balance. Time in business is looked at. There is no minimum credit score.

Is this product available nationwide?

Yes. This product is available in many cities. Business owners can speak with local representatives. It is available in Canada. It is not available in Puerto Rico or other U.S. Territories.

How long does funding take under the bank statement loans program?

First submit your bank statements. If approved, approvals are usually obtained in 24 to 48 hours. Funds can be transferred into your business checking account within 24 to 48 hours of receiving completed closing documents and meeting closing conditions.

How long is the repay time?

The term of these bank statement loans are between 2-18 months. Term options depend on cash flow and time in business.

Overdrafts and Insufficient Funds days. A Maximum of 5 per month are preferred.

Thank you for visiting our business Bank Statement Loan resource page!

Visit the SBA and learn how to develop a business plan and financial statements.



Bridge loans are making a comeback among home buyers, bridge loans.#Bridge #loans


Bridge loans are making a comeback among home buyers

CLEVELAND, Ohio — A decade after the financial crisis and housing collapse, more consumers seem in the mood to buy a new home before they sell their existing home.

Back in the mid-2000s and before, homebuyers often obtained bridge loans to give them money to buy a new home while they were waiting on their current home to sell. But with the housing implosion that started in 2007, consumers lost their willingness to own two homes at the same time and banks lost their desire to finance them anyway.

Now, bridge loans are making a bit of comeback.

At one of Ohio’s largest lenders, Third Federal Savings in Cleveland, the volume of bridge loans has increased by 137 percent since last year. In fact, about 15 percent of purchase loans at Third Federal involve a bridge loan these days.

Part of what’s happening is the housing market is relatively hot, particularly in middle-class neighborhoods. Buyers don’t want to miss losing out on the perfect house. Sellers won’t even think about accepting a buyer with a contingency that she has to sell her existing house first.

On the flip side, if a homeowner decides to sell before buying, and the home sells before a new home is purchased, then the family faces moving into temporary housing.

A bridge loan can solve that. With a bridge loan, a buyer can borrow against the value in their home. That bridge loan can be used to pay off the mortgage on their existing home, and then use what’s left for a downpayment on the new home. Payments on the bridge loan aren’t due until the home is sold. The bridge loan generally doesn’t count toward debt-to-income ratios, according to the American Bankers Association.

“You’re able to use the equity in your current home before you sell it,” said Meredith Weil, chief operating officer at Third Federal.

For example, if you own a home worth $225,000 and have a mortgage balance of $125,000. If you get a bridge loan for $200,000, you could pay off the existing $125,000 mortgage and have $75,000 to use as a downpayment on your next home. Theoretically, you could buy a $375,000 home with a 20 percent downpayment — the $75,000.

First Federal Lakewood is one of the only other major local banks that offers bridge loans. Banks such as PNC and Fifth Third don’t offer them.

Dollar Bank stopped offering them about 15 years ago “because we didn’t have much demand for them,” said spokeswoman Lisa King.

At First Federal Lakewood, bridge loans actually took off in popularity after the financial crisis, said Mary Ann Stropkay, senior vice president of residential lending. After the housing collapse, a lot of banks weren’t lending to someone who already had a mortgage, she said. “The bridge loan became a logical product.”

Bridge loans are especially popular for home owners building their next home, Stropkay said. “We use it quite frequently.” The bank has close 42 so far this year.

At Third Federal, the bank never stopped offering bridge loans but just hadn’t seen much interest in them until recently, Weil said, because “the confidence to buy before they sell didn’t exist . . . We’re starting to see that confidence come back.”

The bridge loan isn’t without a hitch; the borrower is expected to sell his home and repay the loan within a year. There’s a fee if the loan isn’t repaid on time.

The upsides of a bridge loan: No monthly payments are required in the interim; the interest is added to the loan balance. This can be huge if a household can’t afford two mortgages at the same time.

The downside: Bridge loans can be expensive.

Third Federal began actively marketing bridge loans again in May. “We are hopeful this will help people,” Weil said. “It’s really an option for a borrower, if they found their dream house but haven’t put their house on the market.”

Third Federal Chairman and CEO Marc Stefanski said many markets face low housing inventory, and borrowers often need to pull the trigger fast to get their bid accepted.



What Are Bridge Loans and How Do They Work, bridge loans.#Bridge #loans


What Exactly are Bridge Loans?

Bridge loans

Bridge loans

Bridge loans are popular in certain types of real estate markets. Whether bridge loans are a good option for you depends on several factors. The reason buyers take out a bridge loan is to buy another home before selling an existing residence. That may sound like an ideal solution, but a bridge loan is not without risk.

For example, when a home buyer is buying another home before selling an existing home, two common ways to find the down payment for the move-up home is through financing either a bridge loan or a home equity loan (or home equity line of credit).

I advise sellers to wait before buying a home and sell the existing home first, but many feel an urge to locate their move up home first.

If you are absolutely certain your existing home will sell, it will alleviate fears about what happens if it does not. You might want to talk with a trusted advisor before pursuing a bridge loan. The main advantage to a bridge loan is to avoid a contingent offer and make your move-up offer all that more attractive to a seller.

Generally, a home equity loan is less expensive, but bridge loans contain more benefits for some borrowers. In addition, many lenders will not lend on a home equity loan if the home is on the market. Smart borrowers will compare the benefits between the two loans to determine which is a better fit for their particular situation and plan ahead before making an offer to purchase another home.

A major benefit to a bridge loan is the fact it allows you to buy a new home without a contingency to sell.

In seller s markets, many sellers will not accept a contingent offer. If you have a home to sell, that could mean you might not be able to buy a home any other way than without a contingency.

What Are Bridge Loans?

Bridge loans are temporary loans that bridge the gap between the sales price of a new home and a home buyer s new mortgage, in the event the buyer s home has not yet sold.

The bridge loan is secured to the buyer s existing home. The funds from the bridge loan are then used as a down payment for the move-up home.

How Do Bridge Loans Work?

Many lenders do not have set guidelines for FICO minimums nor debt-to-income ratios. Funding is guided by a more make sense underwriting approach. The piece of the puzzle that requires guidelines is the long-term financing obtained on the new home.

Some lenders who make conforming loans exclude the bridge loan payment for qualifying purposes. This means the borrower is qualified to buy the move-up home by adding together the existing loan payment, if any, on the buyer s existing home to the new mortgage payment of the move-up home. The reasons many lenders qualify the buyer on two payments are because:

  • Most buyers have an existing first mortgage on a present home.
  • The buyer will likely close the move-up home purchase before selling an existing residence.
  • For a short-term period, the buyer will own two homes.

If the new home mortgage is a conforming loan, lenders have more leeway to accept a higher debt-to-income ratio by running the mortgage loan through an automated underwriting program. If the new home mortgage is a jumbo loan, most lenders will restrict the home buyer to a 50% debt-to-income ratio.

Average Fees for Bridge Loans

Rates will vary among lenders, but following is an average estimate for a bridge loan in California. Interest rates fluctuate, but for this example, let s use 8.5%. This type of bridge loan will carry no payments for four months; however, interest will accrue and be due when the loan is paid upon sale of the property. Here are sample fees, submitted by an actual mortgage broker*:

In addition, there is a loan origination fee on bridge loans based on the amount of the loan. Each point is equal to 1% of the loan amount. Here are average fees, submitted by a mortgage broker*. Again, fees will vary.

  • $100,000 to $150,000 .75 points
  • $150,000 to $250,000 1.0 points

Home Buying Benefits of Bridge Loans

  • The buyer can immediately put her home on the market and buy without restrictions.
  • Bridge loans may not require monthly payments for a few months.
  • If the buyer has made a contingent offer to buy and the seller issues a Notice to Perform, the buyer can remove the contingency to sell and still move forward with the purchase.

Home Buying Drawbacks of Bridge Loans

  • Bridge loans cost more than home equity loans.
  • Buyers will be qualified by the lender to own two homes and many may not meet this stringent requirement.
  • Making two mortgage payments, plus accruing interest on a bridge loan, could cause stress.

*Note: Thanks to Evelyne Jamet at Vitek Mortgage for providing the sample bridge loan fees.

DISCLOSURE: Vitek Mortgage is a preferred vendor for my employing brokerage and enjoys an affiliated relationship with Lyon Real Estate.

At the time of writing, Elizabeth Weintraub, CalBRE #00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.



Bridge loans#Bridge #loans


bridge loans

Bridge loans

  1. Review eligibility requirements and loan process .
  2. Download, complete and sign the application form Small Business or Citrus Business .

  • Contact and provide completed and signed application and support documentation to your local Florida Small Business Development Center (SBDC). Find your local SBDC at www.FloridaSBDC.org/locations .
  • The Florida Small Business Emergency Bridge Loan Program was activated by Gov. Rick Scott on Sept. 14, 2017, as a result of Hurricane Irma. On. Oct. 6, the program was expanded to include Florida’s citrus businesses.

    This interest-free loan program is currently available to small business owners and citrus businesses throughout Florida that experienced physical and/or economic damage as a result of the storm. Small business owners can qualify for up to $50,000 and citrus growers up to $150,000.

    The program provides a source of expedient cash flow to Florida small businesses that have been physically and/or economically impacted by the storm. These short-term, interest-free working capital loans are intended to “bridge the gap” between the time a major catastrophe hits and when a business has secured longer term recovery resources, such as sufficient profits from a revived business, receipt of payments on insurance claims or federal disaster assistance.

    The Emergency Bridge Loan Program is not designed to be the primary source of assistance to affected small businesses, which is why eligibility is linked to pursuit of other sources. Note: Loans made under this program are short-term debt loans made by the state of Florida using public funds. They are not grants . Emergency bridge loans require repayment by the approved applicant from business receipts, insurance proceeds received, or longer-term disaster recovery assistance.

    • Designated Disaster Area: All of Florida s 67 counties.
    • Qualified Applicant: Applications will be accepted by qualified for-profit, privately held small businesses that maintain a place of business in the state of Florida OR citrus businesses who maintain a citrus grove in production in the state. All qualified applicants must have been established prior to Sept. 4, 2017, and suffered physical damage and/or economic injury as a result of the designated disaster. Qualified small business applicants must be an employer business with a minimum of two (2) and maximum of one hundred (100) employees. Note: The employee requirement does not apply to citrus businesses . Citrus Growers: Go Here for details and to apply for an emergency loan.
    • Amount: Between $1,000 and $50,000 for eligible small businesses; and up to $150,000 for eligible citrus businesses.
    • Term: 90 or 180 days based on individual business circumstances for eligible small businesses; and one (1) year for eligible citrus businesses.
    • Interest: Loans will be interest-free for the loan term.
    • Payments: Payments are not required during the established loan term, but loans must be paid in full by end of the designated loan term, otherwise the loan will be considered in default and penalties apply.
    • Payment Process: Loan payments will be made directly by borrowers to Florida First Capital Finance Corporation, the state of Florida appointed fiscal administrator of the program.
    • Non-Payment Penalties: Penalties for non-payment will begin at the expiration of the established term of each loan, and will be as follows:
      • 12% per annum on the unpaid balance for the first 180 days following expiration of the established term.
      • 18% per annum on the unpaid balance thereafter.
      • Default is subject to normal commercial collection process.

    Applications will be accepted by qualified Florida small businesses and citrus businesses under this program through Nov. 30, 2017 , contingent on availability of funds.



    LOAN stock quote – Manhattan Bridge Capital, Inc price, bridge loan.#Bridge #loan


    Manhattan Bridge Capital, Inc Quote & Summary Data

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    Company Description (as filed with the SEC)

    We are a New York-based real estate finance company that specializes in originating, servicing and managing a portfolio of first mortgage loans. We offer short-term, secured, non-banking loans (sometimes referred to as “hard money” loans), which we may renew or extend on, before or after their initial term expires, to real estate investors to fund their acquisition, renovation, rehabilitation or improvement of properties located in the New York metropolitan area. We are organized and conduct our operations to qualify as a real estate investment trust for federal income tax purposes (“REIT”). We have qualified for taxation as a REIT beginning with our taxable year ended December 31, 2014. We are organized as a New York corporation and operated as a fully-taxable C-corporation for federal and state income tax purposes through the end of our 2013 tax year. As a result, we were able to re-invest most of our net after-tax profits back into our business. . More .

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    Bridge loan



    How to Calculate a Bridge Loan, bridge loan.#Bridge #loan


    How to Calculate a Bridge Loan

    You are moving and you ve found a great house to buy, but there s a problem. Your old property hasn t sold yet. That means you are still making mortgage payments and you can t use the equity in your present home for a down payment. One option to think about is a bridge loan. Bridge loans carry risks, but they can be a way to secure a new property when you don t have time to wait for the old one to sell.

    Function of a Bridge Loan

    Bridge loans are short-term financing vehicles intended to cover a gap between the time you purchase a new home and sell the old one. Six months is a typical time frame for a bridge loan. Homeowners use bridge loans to obtain cash for a down payment on a new house quickly. Some homeowners choose bridge loans to pay off mortgages and forestall foreclosure. The bridge loan buys these distressed homeowners more time to sell the property instead.

    How a Bridge Loan Works

    Suppose you are moving because your employer has transferred you. You go to a lender and take out a bridge loan against the equity in your current house to use as a down payment on a new house. The amount you borrow includes points, fees and interest points. Terms of a bridge loan vary. For example, some lenders allow you to borrow enough to pay off your old mortgage. Your current home is collateral for the bridge loan. When the current property is sold, the money pays off the bridge loan.

    Calculating Bridge Loans

    To calculate a bridge loan, you need to know how much money is required as a down payment on the new property as well as the outstanding balance of the current mortgage. You also need to know the fees and points the lender will charge. Suppose your home is appraised at $250,000 and the lender will allow up to 80 percent of that amount to raise cash and pay off the old mortgage, or $200,000. The current mortgage balance is $150,000. Assume this lender charges 2 points, meaning 2 percent of the bridge loan amount of $200,000. Add 1 percent in prepaid interest and fees. Points and fees come to $6,000. Subtract $6,000 and $150,000 from the $200,000 loan amount. You have $44,000 cash to make a down payment on the new house.

    The Upside and Downside

    If you need to get out of your old home and mortgage quickly, a bridge loan can be a lifesaver because it can raise the cash to buy the home you want before another buyer beats you to it. However, bridge loans can be expensive. In the example above, the cost is $6,000 plus the interest that accrues until the loan is paid off. Bridge loans also carry risk. Your existing home is collateral and can be foreclosed on if the loan isn t paid. That can happen if the property doesn t sell before the bridge loan comes due or if the housing market turns sour and you are unable to sell for enough to pay off the bridge loan.



    Bridge Loan Calculator, bridge loan.#Bridge #loan


    Bridge Loan Calculator

    Bridge loans are most commonly reserved for real estate financing though they don’t have to be. A bridge loan is usually a short term loan that provide funds for purchasing an asset (such as a home) when the cash-on-hand along with the primary loan is not enough to pay for the asset.

    For example, if you currently have $50,000 cash and a home that you are selling for $400,000 for which there is a balance on the mortgage of $200,000 and you plan to buy a home for $800,000, you might be a candidate for a bridge loan.

    If the lending institution for the new mortgage requires that you put a deposit of 20% down, $160,000, at closing, you will not have the cash if the closing has not taken place on your current home. This is where a bridge loan can be used.

    -$50,000 cash on hand

    -$640,000 mortgage available

    $110,000 covered by bridge loan

    The new home mortgage will be $640,000 (800,000 – 160,000 = 640,000). The selling price less the cash on hand and the mortgage money available leaves a short of $110,000. This is the amount covered by the bridge loan. A bridge loan is typically an interest only loan. This means you make only interest payments. The loan is also usually a short term loan offered at a higher interest rate. The idea is that once the first property is sold, the bridge loan will be paid off immediately from the $200,000 net proceeds from the sale of the first house.

    That’s the background. This calculator will calculate your total payment for the primary new mortgage and the interest only bridge loan payment. The bridge loan has no term for it is due when the closing occurs on the first house. The only thing you have to know about the bridge loan is the annual rate of interest you’ll be charged.

    Anticipated Bridge Loan Term? (#) Enter number of months you anticipate needing a bridge loan. That is, how many months you think it will be until you close on the property you are selling. This value does not impact the bridge loan amount. It impacts the payment schedule and charts.

    This calculator makes these assumptions:

    1) payment for both loans are made monthly

    2) the bridge loan is an interest only loan (payments never go toward principal)

    Bridge loan



    Bridge loans are making a comeback among home buyers, bridge loans.#Bridge #loans


    Bridge loans are making a comeback among home buyers

    CLEVELAND, Ohio — A decade after the financial crisis and housing collapse, more consumers seem in the mood to buy a new home before they sell their existing home.

    Back in the mid-2000s and before, homebuyers often obtained bridge loans to give them money to buy a new home while they were waiting on their current home to sell. But with the housing implosion that started in 2007, consumers lost their willingness to own two homes at the same time and banks lost their desire to finance them anyway.

    Now, bridge loans are making a bit of comeback.

    At one of Ohio’s largest lenders, Third Federal Savings in Cleveland, the volume of bridge loans has increased by 137 percent since last year. In fact, about 15 percent of purchase loans at Third Federal involve a bridge loan these days.

    Part of what’s happening is the housing market is relatively hot, particularly in middle-class neighborhoods. Buyers don’t want to miss losing out on the perfect house. Sellers won’t even think about accepting a buyer with a contingency that she has to sell her existing house first.

    On the flip side, if a homeowner decides to sell before buying, and the home sells before a new home is purchased, then the family faces moving into temporary housing.

    A bridge loan can solve that. With a bridge loan, a buyer can borrow against the value in their home. That bridge loan can be used to pay off the mortgage on their existing home, and then use what’s left for a downpayment on the new home. Payments on the bridge loan aren’t due until the home is sold. The bridge loan generally doesn’t count toward debt-to-income ratios, according to the American Bankers Association.

    “You’re able to use the equity in your current home before you sell it,” said Meredith Weil, chief operating officer at Third Federal.

    For example, if you own a home worth $225,000 and have a mortgage balance of $125,000. If you get a bridge loan for $200,000, you could pay off the existing $125,000 mortgage and have $75,000 to use as a downpayment on your next home. Theoretically, you could buy a $375,000 home with a 20 percent downpayment — the $75,000.

    First Federal Lakewood is one of the only other major local banks that offers bridge loans. Banks such as PNC and Fifth Third don’t offer them.

    Dollar Bank stopped offering them about 15 years ago “because we didn’t have much demand for them,” said spokeswoman Lisa King.

    At First Federal Lakewood, bridge loans actually took off in popularity after the financial crisis, said Mary Ann Stropkay, senior vice president of residential lending. After the housing collapse, a lot of banks weren’t lending to someone who already had a mortgage, she said. “The bridge loan became a logical product.”

    Bridge loans are especially popular for home owners building their next home, Stropkay said. “We use it quite frequently.” The bank has close 42 so far this year.

    At Third Federal, the bank never stopped offering bridge loans but just hadn’t seen much interest in them until recently, Weil said, because “the confidence to buy before they sell didn’t exist . . . We’re starting to see that confidence come back.”

    The bridge loan isn’t without a hitch; the borrower is expected to sell his home and repay the loan within a year. There’s a fee if the loan isn’t repaid on time.

    The upsides of a bridge loan: No monthly payments are required in the interim; the interest is added to the loan balance. This can be huge if a household can’t afford two mortgages at the same time.

    The downside: Bridge loans can be expensive.

    Third Federal began actively marketing bridge loans again in May. “We are hopeful this will help people,” Weil said. “It’s really an option for a borrower, if they found their dream house but haven’t put their house on the market.”

    Third Federal Chairman and CEO Marc Stefanski said many markets face low housing inventory, and borrowers often need to pull the trigger fast to get their bid accepted.



    Bank Statement Loan, bridge loans.#Bridge #loans


    Small Business Loans Depot

    Bank Statement Loan

    November 14, 2017. Niche bank statement loans program for your business.

    Credit scores as low as 500 and lower in some cases.

    Time in business as short as only 4 months may be available.

    Provide the most recent 3 months complete business checking account statements.

    Complete the Secure DocuSign Application.

    Get a bank statement loan today based on your company sales. If your business has 3 months of revenue, get business bank statement funding based on sales

    Many businesses have excellent cash flow and payment history. Even so, they are often declined because of limited collateral or unsatisfactory personal credit. These businesses feel they should have access to capital.

    We agree. Small business loans depot can provide business bank statement financing quickly. Based on your Business revenue, we can get your business the capital it needs within 3 to 5 business days or less.

    Bank Statement Loans for businesses

    Business Bank Statement loans include the following features:

    The highest approval percentage of any business financing.

    Every business has Cash flow, many businesses can qualify.

    Only 3 months bank statements requested.

    Just a short 1 page application is needed.

    Fast turnaround, one or two day approval common.

    Get your Bank Statement Loan today. Call us now at Tel: 919-771-4177 or Toll Free: 855-787-1113.

    Daily, weekly and monthly repayment options are available.

    Large business loans available. Programs for a business loan over $100,000, $150,000 and $250,000.

    Other documentation may be requested on a case by case basis.

    Contact us today. Get your business funded. Start now.

    Other bank statement loan features:

    Up to 100% of a customer s total monthly deposits may be approved. If your business has average monthly deposits of $50,000, then an approval up to $62,500 may be possible depending on other factors. If the businesses average daily balance is strong, the approval amount can be higher.

    Some Bank Statement Loan programs can be used similar to a line of credit. The customer uses the line and repays at their discretion. The customer can use the full line or part of the line amount again immediately. The line can also be left idle for months until it is needed again. This line does not require an annual pay down. Annual or quarterly financial statements are not needed for bank statement financing, also known as an ACH Business loan.

    Provide the most recent 3 months business checking account statements. The higher the total deposits per month are, the more the bank statement loan amount may be.

    Required to qualify or pre-qualify.

    Signed and dated application from 50% of ownership.

    Last 3 months complete business bank statements from main business operating

    For amounts over $150,000: The most recent 6 months business bank statements

    and first page of the most recent business tax return.

    Other requirements may apply.

    General Requirements for Loan Contracts:

    Valid and clear driver s license.

    Voided business check for approved account.

    Valid E-Mail address for owners.

    Federal Tax ID number, or TIN.

    Other documentation required on a case by case basis.

    Other business bank statement loan customer benefits often available:

    New loans may be offered 60 days after closing first loan for certain programs

    depending on eligibility.

    Renewals and renewal options often begin at 40% pay down of balance.

    No standard site inspection for most clients.

    Tax Liens $175,000 may be accepted.

    Bankruptcies 1 Year usually O.K.

    Only 50% ownership required in some cases.

    Soft Credit pull for certain programs.

    No personal guarantee required for some programs.

    Loans are amortized daily for certain programs.

    No prepayment penalty for certain programs, if qualified.

    The newest option is an open Tax lien business loan under $10,000, which may be approvable. An IRS payment arrangement is not required. 3 month to 12 month terms are available if qualified. Business with an open tax lien and no payment arrangement can be financed.

    May 11, 2017, Richmond, VA for immediate release. Union Books completes a $50,000 business bank statement loan. The company determined they needed to make changes with their business operations. Owner Stephen Ivy told the Richmond Bizsense how Union Books will use the funding. We will use this funding to make numerous technology, advertising and and social media changes to boost sales. Local sales opportunities are available using social medial platforms. We expect to increase sales by 15% in the next 12 months and 30% in the next 24 months. We look forward to working with

    smallbusinessloansdepot.com for other financing needs in the future. Union Books continues financing transactions to date.

    Frequently asked business bank statement financing Questions:

    Are all these products about the same?

    These products fall under one basic product type. Callers call in with many different requests. Requests from callers include a business bank statement loan and a loan based on bank statements . Other requests from callers include a business loan using bank statements . bank statement loan for business , and bank statement financing are also requested.

    What is the maximum we can get?

    The bank statement loan line size depends upon the total dollar amount of deposits per month and the average daily balance. Time in business is looked at. There is no minimum credit score.

    Is this product available nationwide?

    Yes. This product is available in many cities. Business owners can speak with local representatives. It is available in Canada. It is not available in Puerto Rico or other U.S. Territories.

    How long does funding take under the bank statement loans program?

    First submit your bank statements. If approved, approvals are usually obtained in 24 to 48 hours. Funds can be transferred into your business checking account within 24 to 48 hours of receiving completed closing documents and meeting closing conditions.

    How long is the repay time?

    The term of these bank statement loans are between 2-18 months. Term options depend on cash flow and time in business.

    Overdrafts and Insufficient Funds days. A Maximum of 5 per month are preferred.

    Thank you for visiting our business Bank Statement Loan resource page!

    Visit the SBA and learn how to develop a business plan and financial statements.



    How to Calculate a Bridge Loan, bridge loan.#Bridge #loan


    How to Calculate a Bridge Loan

    You are moving and you ve found a great house to buy, but there s a problem. Your old property hasn t sold yet. That means you are still making mortgage payments and you can t use the equity in your present home for a down payment. One option to think about is a bridge loan. Bridge loans carry risks, but they can be a way to secure a new property when you don t have time to wait for the old one to sell.

    Function of a Bridge Loan

    Bridge loans are short-term financing vehicles intended to cover a gap between the time you purchase a new home and sell the old one. Six months is a typical time frame for a bridge loan. Homeowners use bridge loans to obtain cash for a down payment on a new house quickly. Some homeowners choose bridge loans to pay off mortgages and forestall foreclosure. The bridge loan buys these distressed homeowners more time to sell the property instead.

    How a Bridge Loan Works

    Suppose you are moving because your employer has transferred you. You go to a lender and take out a bridge loan against the equity in your current house to use as a down payment on a new house. The amount you borrow includes points, fees and interest points. Terms of a bridge loan vary. For example, some lenders allow you to borrow enough to pay off your old mortgage. Your current home is collateral for the bridge loan. When the current property is sold, the money pays off the bridge loan.

    Calculating Bridge Loans

    To calculate a bridge loan, you need to know how much money is required as a down payment on the new property as well as the outstanding balance of the current mortgage. You also need to know the fees and points the lender will charge. Suppose your home is appraised at $250,000 and the lender will allow up to 80 percent of that amount to raise cash and pay off the old mortgage, or $200,000. The current mortgage balance is $150,000. Assume this lender charges 2 points, meaning 2 percent of the bridge loan amount of $200,000. Add 1 percent in prepaid interest and fees. Points and fees come to $6,000. Subtract $6,000 and $150,000 from the $200,000 loan amount. You have $44,000 cash to make a down payment on the new house.

    The Upside and Downside

    If you need to get out of your old home and mortgage quickly, a bridge loan can be a lifesaver because it can raise the cash to buy the home you want before another buyer beats you to it. However, bridge loans can be expensive. In the example above, the cost is $6,000 plus the interest that accrues until the loan is paid off. Bridge loans also carry risk. Your existing home is collateral and can be foreclosed on if the loan isn t paid. That can happen if the property doesn t sell before the bridge loan comes due or if the housing market turns sour and you are unable to sell for enough to pay off the bridge loan.



    Bridge Partners – Opportunistic Real Estate Private Equity Investment Firm, bridge loan.#Bridge #loan


    28 YEARS OF HISTORY

    ZERO LOAN DEFAULTS

    BRIDGE PARTNERS REAL ESTATE

    Bridge Partners is an opportunistic real estate private equity investment firm headquartered near San Francisco, California. Founded in 1990, Bridge Partners specializes in the acquisition, rehabilitation, and management of multifamily and hospitality properties nationwide. Throughout its history, Bridge Partners has demonstrated multi-disciplinary capacity and innovative acquisition strategy. Bridge Partners investments apply creative sourcing techniques to prudent investment theory and institutional quality execution. By capitalizing on an extensive network of relationships, Bridge Partners has the facility to invest in various disciplines including fee simple acquisitions, value-add properties, student housing, distressed debt, partnership interests and various affordable programs. To date, Bridge Partners has completed over 200 transactions across 18 states and 50 domestic markets. Its existing portfolio features 30 properties throughout 16 states containing 7,000 units.

    Bridge loan

    The Interurban Building is located in the historic district of downtown Dallas. Built.

    Case study / Affordable Housing

    Bridge loan

    Rio Volcan Apartments is a 240 unit Section 42 LIHTC property located in Albuquerque.

    Case study / Student Housing

    Bridge loan

    In late 2010, Bridge Partners purchased the non-performing note secured by West Run.

    Case study / Value Add

    Bridge loan

    In a recent fee simple transaction, Bridge Partners placed individual high net worth and family office.

    Case study / Hospitality

    Bridge loan

    Bridge Partners acquired the 250 key Radisson Penn Harris Hotel located in Harrisburg.

    Case study / Opportunistic

    Bridge loan

    In the First Quarter of 2013, Bridge Partners acquired The Reserve at Saratoga, a 274-unit resort-style.

    Bridge loan



    Takata to file for bankruptcy Monday, SMFG to provide bridge loan: sources, Reuters, bridge loan.#Bridge #loan


    Takata to file for bankruptcy Monday, SMFG to provide bridge loan: sources

    TOKYO (Reuters) – Takata Corp 7312.T will seek bankruptcy protection from creditors on Monday, two sources said, as the Japanese company faces billions of dollars in liabilities stemming from the biggest recall in automotive history.

    The firm, whose defective air-bag inflators have been blamed for at least 16 deaths and more than 150 injuries worldwide, will file for protection in Tokyo District Court under the Civil Rehabilitation Act, Japan s version of U.S. Chapter 11 bankruptcy, said the sources, one of whom has direct knowledge of the matter and one who was briefed on the process.

    Takata will then seek bridge loans from the core banking unit of Sumitomo Mitsui Financial Group Inc ( 8316.T ), which will provide tens of billions of yen (hundreds of millions of dollars) in bridge loans, one source said.

    Takata spokesman Toyohiro Hishikawa said nothing had been decided regarding any filing or financing.

    Shares in Takata changed hands for the first time since sources said last week that the struggling airbag maker was preparing to file for bankruptcy.

    By mid-afternoon shares had more than halved in value to 116 yen, eroding Takata s market capitalization by about 75 percent from a week ago to nearly $86 million now.

    Any filing would coincide with a deal for financial backing from U.S. auto parts maker Key Safety Systems Inc. Key is expected to acquire Takata assets as part of a restructuring in bankruptcy, a source told Reuters.

    Takata would stop making air-bag inflators after completing a global recall as part of the restructuring plan with Key, separate sources said.

    Takata plans to begin bankruptcy proceedings in both the United States and Japan, sources have said. Such moves would culminate a long, tumultuous fall for the family-controlled company that grew to become a global supplier to most of the world s major automakers.

    Reporting by Taro Fuse and Maki Shiraki, writing by Thomas Wilson; Editing by Himani Sarkar



    Bridge Loans – Western Capital Funding #scholarships #for #college


    #bridge loans
    #

    Bridge Loans

    From plan to project

    Do you own a property and are looking to expand or purchase a larger location? Are you searching for a quick financing solution that will get you from point A to point B until you are able to secure more permanent funding? Western Capital Funding offers just the type of financing you need.

    A bridge loan is a type of loan used by a company to bridge a gap in financing until the company obtains more permanent funding for an existing project or obligation. Commonly used to assist with immediate business needs for capital, debt, improvements or real estate transactions, the bridge loan is usually a short-term loan but it can range between a few months to a few years. Most often, a business will take a bridge loan for real estate purposes in order to renovate or save a property from foreclosure or to assist in a quicker closing on a property.

    Western Capital Funding can assist your business in securing a bridge loan with financing as high as $1 million to $100 million. Depending of your business needs, a bridge loan might be the right choice for you.

    Among the many benefits of securing a bridge loan are:

    • Easier and quicker to obtain than a long term loan

    • High value loan ranging from $250.000 to millions of dollars

    • Interest rates from 9 to 14 percent

    • Lower overall cost to business when compared to other loans

    • Low income documentation required to apply

    • No early repayment penalty



    How to Get a Bridge Loan? #apply #for #loan


    #bridge loans
    #

    How to Get a Bridge Loan?

    Can banking get any more complicated? Hey man, you have no clue ;-).  But in fact, clients can make banking and the loan industry complicated:

    At first, somebody wants to buy a house but doesn’t have any cash available for a down payment. So, banks create mutual funds to help him save.

    Then, this same individual can’t manage his budget so he can’t really save. And, banks come up with RRSP loans.

    Now that he has a 5-10% cash deposit saved, he now wants to buy his house right away. Therefore banks offer him a mortgage.

    But the guy wants more flexibility as he wants to make home renovations and buy a new car. So the banks create the home equity line of credit.

    And guess what? The same guy doesn’t want to manage notary/lawyer’s dates while buying and selling properties. This is why banks created a bridge loan .

    What is a bridge loan?

    A bridge loan is a very interesting product for individuals who don’t want to bother about dates when selling/buying their properties. A bridge loan is a short term loan that advances the amount of your cash down temporarily between the sale of your current house and the purchase of the new one.

    Why do you need a bridge loan?

    Picture this: you have a house selling on June 13 th (the moment you will receive your check) and you give the keys to the new owner on June 17 th. You finally find the home of your dreams and you are getting the keys on June 12 th. Therefore, you will have to give the seller your check before that date. Let s say that you have to pay him on June 9 th. The bank will disburse your mortgage on June 9 th. but where will you find your cash down if you are getting the money from the sale of your house on June 13 th. This is why you have 2 options:

    #1 You ask your buyer to accelerate the process and go to the notary on June 6 th so you can get your money ready for June 9 th. However, if the buyer pays upfront,  he will want to possess the house faster. If he only gets the keys on June 17 th. he will request compensation for the 11 days that you live in “his” house for “free” (since your mortgage will be paid off on June 6 th at the time of the sale.

    #2 You keep the dates as is and ask for a bridge loan from your bank! The bridge loan will be disbursed on June 9 th (the date you are buying) and the bank will also disburse your new mortgage so you have the whole amount to buy your new property. Therefore, on June 9 th. you will be responsible for the 2 mortgages (since you haven’t sold your house yet) and a bridge loan (which is the equity lying in your previous property that is not sold yet).

    On June 13 th. you will receive the check from the sale of your house but the bank will demand from the notary/lawyer to be paid first for #1 the outstanding mortgage and #2 for the bridge loan.

    What is the cost of a Bridge Loan?

    They used to have a basic fee for a bridge loan since it is a temporary loan where banks don’t make much money on it (imagine the interest rate of 5% on $50,000 for 5 days… you don’t get much from it!). However, since competition is pretty rough, banks tend to wave bridge loan setup fees in order to make sure they get the mortgage!

    What is the interest rate on a Bridge Loan?

    It is usually comparable to the interest rate on unsecured personal loan. In fact, bridge loans are unsecured loans (but they are set on a very short amortization).

    What is the maximum amortization for a Bridge Loan?

    There are no specific rules about bridge loan in terms of amortization. Since the bank is still taking a risk, they usually don’t extend bridge loan for more than 90 days. Otherwise, your bank will require that you renegotiate your possession dates instead of asking for the bridge loan.

    What do you need to get a bridge loan?

    Basically, the bank will require that the 2 transactions are almost certain. Therefore, they will need your purchase and sale contracts with financing approval for all parties involved. The bridge loan will be disbursed at the same time as your new mortgage and you don’t have to do anything to manage it. The repayment date of the bridge loan will be set according to your sale date at the notary/lawyer. The bank s main requirement in order to grant the bridge loan is obviously to get the final mortgage (we don’t work for nothing after all ).

    After giving some thoughts about it, I will be going for the bridge loan instead of managing date with buyers and sellers. The bridge loan won’t cost me much and it is definitely an easy way to get everything done without headaches!



    This is what Theresa May refused to tell you in her schoolyard sermon on terror #london #bridge #attacks, #terrorism, #middle #east, #theresa #may, #counter-terrorism, #voices


    #

    This is what Theresa May refused to tell you in her schoolyard sermon on terror

    Theresa May makes a statement outside Downing Street following the attack

    Donald Trump condemns violence at far-right rally in Charlottesville


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    Was that really the best Theresa May could do? It was the same old tosh about “values” and “democracy” and “evil ideology”, without the slightest reference to the nation to whom she fawns – Saudi Arabia, whose Wahhabist “ideology” has seeped into the bloodstream of Isis. al-Qaeda and the Taliban .

    Tony Blair used the same garbage language when he claimed – untruthfully, of course – that the 7/7 London bombings had nothing to do with Iraq. He, too, like George Bush, claimed that they were perpetrated because the bombers hated our values and our democracy, even though Isis would have no idea what these values were if they woke up in bed next to them.

    And then there was the patronising monomorphic language that our wretched Prime Minister used, as if everything she says is false. Which it is.

    “Enough is enough.” What on earth does that mean? “Terrorism breeds terrorism.” What nonsense. It’s the same baby language as “Brexit means Brexit ”, the double emphasis mere proof that May has lost the ability to convince us of anything she says.

    Theresa May: The internet provides a safe space for extremist ideologies to breed

    Jeremy Corbyn – not, I have to admit, one of my heroes – got it right. May needs to talk to us about the “difficult conversations” she must have with the Saudis and their Gulf allies, not to Muslim British citizens. But she is too gutless, too cowardly, to deal with the Gulf Arab autocrats to whom she sells weapons, whose principal Arabian dictator, the head-chopper-in-chief, is so worthy of our mourning that May’s predecessor lowered the British flag to half-mast on his death.

    Yes, to confront this Salafist-Wahhabi state and Gulf citizens’ financial contributions to Isis would be a “difficult conversation” indeed for Theresa May. Instead, she’s going to have her “embarrassing conversations” with Britain’s Muslims who have no power to switch off the “evil ideology” which Wahhabism represents.

    She does have that power. But she won’t use it.

    It was laughable to hear the Prime Minister utter the awful clichés that she has obviously picked up from the world of business – she spoke of “safe spaces”, for example, three times. Those of us who have been attacked with abuse and hatred on the internet for more than two decades could have told her there was a problem here a long time ago. But she’s only just grasped it. Hence her disturbingly Orwellian intention to “regulate” the internet.

    Had she used it in 1998, for example – May was already an MP back then – she would have noticed a sermon by a prominent Wahhabi Muslim clergyman who called upon God “to seize the Jews and Christians in the grip of your punishment … send down upon them a torment most grievous … they have filled the entire world with tyranny, oppression and sins … We seek thy protection against their evil”. This was preached at the Great Mosque in Medina in Saudi Arabia. But this “evil ideology” can still be found on the internet – and nor, I suspect, has Theresa May any intention of “regulating” it now.

    The election results could be drastically altered by the London attack

    A Muslim friend, listening to May’s schoolyard sermon outside Downing Street, wondered if British politicians had not lost their sense of ability to speak with dignity. How dare she talk down to her own people with such childish lessons? And how could one not wince at her reference to British “military action” in the Middle East – the very foreign policy which, along with America, led us into war with the Arabs so many times. One thinks of British “military action” in Palestine and Suez. And now in Iraq and Syria. Yet we continue grovelling to the Gulf monarchies as we assist them in their criminal campaign in Yemen.

    And still May will not say what she knows to be true: that Britain can no longer expect to go on foreign adventures and be safe at home.

    When Britain fought in the Korean War, no North Korean or Chinese person came to bomb London buses and tube trains. When America waged its bloody campaign in Vietnam, no Vietcong or North Vietnamese person arrived to attack New York or Washington. But those days are over. This is a terrifying lesson because the politicians who support our disastrous wars in the Middle East are safe from its effects. It is the truly innocent – the children, the young, the vulnerable: the very people defined by that incomparable word civilians – who pay the price at the hands of Isis’s insufferable, cruel murderers. It is these innocents who must endure “torment most grievous”.

    It is, of course, well past time to change our foreign policy in the Middle East.

    Theresa May should not be criticised for politicising her speech

    Heaven spare us, we shall soon see British politicians, on the 100th anniversary of the Balfour Declaration, congratulating Israel even as it continues to steal land from Arabs for Jewish colonies on the occupied West Bank. What Britain so sorely lacks is a thorough reappraisal of its entire relationship with the Middle East, especially with the Arab dictators and torturers whom we arm. We may frolic with these men for their money but our dalliance is a disgrace to Britain. “Things need to change,” as May lectured us. But this would need a change of prime minister.

    Because such a policy needs real courage. It’s easier to threaten UK Muslims with “embarrassing conversations” than to threaten our “moderate”, autocratic allies. For that would indeed need courage.

    Courage needs courage, as our Prime Minister might say. But that, Theresa May does not have.



  • Bridge Loan Calculator – Bridge Capital #student #loan #rates


    #bridging loan calculator
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    Bridge Loan Calculator

    Most people find bridge loans useful for funding a downpayment on a new house while still waiting for their old home to sell.

    A bridge loan is a type of loan that is designed to bridge the gap between two more permanent kinds of loans. For instance, you need to relocate to a new home as soon as possible but you do not have an immediate source of funding for it. Either you haven’t sold your current home, or you are planning on selling it but the home you will be relocating to is offered at an incredibly high price. It is in these cases where bridge loans may come in handy to help you get into your new home before you are able to sell your old one.

    What You Need to Know About Bridge Loans

    Bridge loans are very risky both for borrowers and lenders. Because bridge loans are short-term loans, they also entail high interest rates and large regular payments. Every time the borrower is not able to pay, there are high penalties and fees that get added onto the debt. If this happens, the borrower may find himself in a financial position that was worse than what he started with. On the other hand, lenders also view most bridge loans as high risk loans. There is a very large tendency for borrowers not paying their loans because of the high interest and fees. They are not always assured that the borrowers can and will pay the debt in full.

    In bridge loans, the problems that usually turn up are the terms and the cost. Bridge loans are designed to be short term, usually for a duration of about six months. These loans are also known to have high interest rates so you should not be surprised with interest rates going up to 15%.

    Obtaining a Bridge Loan

    Getting a bridge loan does not depend on your credit limit but on your properties or the real estate that you own. There are several free bridge loan calculators that are available online for you if you want to know how much a bridge loan can cost you. In these bridge loan calculators, you will be asked to fill in certain information such as purchase price, cash available, first mortgage interest rate, amount of first mortgage, second interest rate and other data. Once you submit all these information, you will then be presented with a result.

    Bridge loan calculators are not always perfectly accurate. However, they are very useful as they can give you a good estimate or idea of the costs of getting a bridge loan.

    You can try out many free online bridge loan calculators that will generally give fairly accurate results based on the data that you put in. You can also look for free online bridge loan calculators by using search engines using related keywords. There are also many online bridge loan calculators that can help you with your financial assessment and evaluation, such as first and second mortgage calculators.



    Bridge Loans and Home Purchase Bridge Loans #low #interest #rate #loans


    #bridging loans
    #

    Bridge Loans

    A bridge loan is basically a short term loan taken out by a borrower against their current property to finance the purchase of a new property.

    Also known as a swing loan, gap financing, or interim financing, a bridge loan is typically good for a six month period, but can extend up to 12 months. Most bridge loans carry an interest rate roughly 2% above the average fixed-rate product and come with equally high closing costs.

    Bridge loans are generally taken out when a borrower is looking to upgrade to a bigger home, and haven’t yet sold their current home. A bridge loan essentially “bridges the gap” between the time the old property is sold and the new property is purchased.

    Home Buying Contingencies

    Many purchase contracts have contingencies that allow the buyer to agree to the terms only if certain actions occur. For example, a buyer may not have to go through with the purchase of the new home they are in contract for unless they re able to sell their old home first. This gives the buyer protection in the event no one buys their home, or if nobody is willing to buy the property at the terms they desire.

    When a seller won’t accept the buyer’s contingency, a bridge loan might be the next best way to finance the new home.

    How Do Bridge Loans Work?

    A bridge loan can be structured so it completely pays off the existing liens on the current property, or as a second loan on top of the existing liens. In the first case, the bridge loan pays off all existing liens, and uses the excess as down payment for the new home. In the latter example, the bridge loan is opened as a second or third mortgage, and is used solely as the down payment for the new property.

    If you choose the first option, you likely won’t make monthly payments on your bridge loan, but instead you’ll make mortgage payments on your new home. And once your old house sells, you’ll use the proceeds to pay off the bridge loan, including the associated interest and remaining balance.

    If you choose the second option, you’ll still need to make payments on your old mortgage (s) and the new mortgage attached to your new property, which can stretch even the most well-off homeowner’s budget. So make sure you’re able to take on such payments for up to a year if necessary.

    Most consumers don’t use bridge loans because they aren’t necessary during housing booms and hot markets. For example, if your home goes on the market and sells within a month, it’s typically not necessary to take out a bridge loan. But now that things have cooled off, they may become a bit more common as sellers experience more difficulty in unloading their homes.

    Bridge Loans Can Be Risky

    Many critics find bridge loans to be risky, as the borrower essentially takes on a new loan with a higher interest rate and no guarantee the old property will sell within the allotted life of the bridge loan. However, borrowers usually doesn’t need to pay interest in remaining months if their home is sold before the term of the bridge loan is complete. But watch out for prepayment penalties that hit you if you pay the loan off too early!

    Make sure you do plenty of research before selling your home to see what asking prices are and how long homes are generally listed before they re ultimately sold. The market may be strong enough so that you don’t need a bridge loan. But if you do need one, be aware that a home could go unsold for six months, or longer, so negotiate terms that allow for an extension to the bridge loan if necessary.

    If you think a bridge loan is right for you, try to work out a deal with a single lender that provides both your bridge loan and long-term mortgage. Usually they’ll give you a better deal, and a safety net as opposed to going with two different banks or lenders.

    Also keep in mind that there are other alternatives to a bridge loan such as financing down payments with your 401k, stocks, and other assets. Remember to compare each scenario before signing anything!



    Bridge Loans – Hard Money Bridge Loan Lenders – North Coast Financial, Inc. #parent #plus #loan


    #bridge loans
    #

    Bridge Loans Bridge Loan Lenders

    North Coast Financial are bridge loan lenders who have been providing real estate investors with hard money bridge loans for 35 years.  Offering fast approvals and funding. competitive rates and reliable service . North Coast Financial has established themselves as one of the top hard money bridge loan lenders in California.

    Bridge Loans Offered by North Coast Financial:

    • Property Types:

    Single family, multi-family, commercial, industrial, land

  • Loan Amounts:
    $25,000 – $1 Million+
  • Loan Terms:
    6 to 36 months, longer terms also available
  • Lien Positions:
    1sts and 2nds
  • Owner-Occupied Loans Available
  • Loan to Value (LTV):
    Up to 75% of current value of property
  • Prepayment Penalty:
    Minimum 3 months interest
  • Fees:

      No appraisal fees (in most situations)

      No hidden junk fees (underwriting, document, processing, etc.)

  • Bridge Loan Rates and Points:

    Please   contact us   for information on current rates and points

  • Hard Money Bridge Loans

    A bridge loan is a type of hard money loan used for short-term financing. Bridge financing typically has a term from one month to one year. Bridge loan rates are higher than traditional institution loans due to the increased risk. Bridge loan lenders are less concerned with the credit worthiness of the borrower since the bridge loan is secured by property. This is beneficial for borrowers who may currently have less than ideal credit but have equity in property.

    Bridge loans have lower loan to value (LTV) ratios than traditional mortgages obtained from banks in order to protect the lender from a borrower defaulting. The bridge loan lender will generally only allow for a loan to value ratio of 70-75%. The borrower may sell the property or arrange other long-term financing in order to pay off the bridge loan.

    Residential Bridge Loans and Commercial Bridge Loans

    Residential bridge loans and commercial bridge loans are both gaining popularity as a way to quickly acquire cash in order to take advantage of short-term real estate opportunities. Commercial bridge loans generally have a lower LTV than residential bridge loans and the bridge loan lenders will require additional information and documentation.

    A bridge loan may also be called a bridging loan, gap financing, interim financing or a swing loan.

    Bridge Loan Example

    An example of a traditional bridge loan would be when an investor owns a property and wishes to purchase a new property. The investor doesn t have sufficient funds to purchase the new property but needs to secure the new property before selling the existing property. The investor is able to use bridge loan financing to borrower against the property they already own to raise funds for the purchase of the new property.

    Once the new property is purchased, the investor can sell their original property and pay off the bridge loan. The bridge loan bridges the gap between the purchase of the new property and the sale of the existing property.

    North Coast Financial is an experienced hard money bridge loan lender. Contact us today to see how we can help you with your real estate financing needs.

    Bridge Loan Frequently Asked Questions:

    What is a bridge loan?

    A bridge loan is a short-term loan that “bridges the gap” between other types of long-term financing. Bridge financing is secured by real estate and have higher interest rates than conventional loans due to the higher risk associated with these loans. They are designed for investors and borrowers who are involved in real estate projects or transactions such as hard money rehabs, making improvements on land, and purchasing short sales or foreclosures. Residential bridge loans and commercial bridge loans are available to property owners who wish to borrower against the equity in their property.

    How does one get a bridge loan?

    Bridge loan financing is a straightforward process when compared to obtaining a financing from a conventional lender such as a bank or credit union. Simply contact a bridge loan lender and complete their application process. The bridge lender will require information about the borrower and the subject property. They will then analyze this information and confirm the value of the property. The bridge loan lender will then determine how much they can lend and what loan terms are available for the borrower. The loan should be able to be funded within a week.

    How do bridge loans work?

    The property owner borrows against real estate they already own and pulls out equity with the bridge loan. The proceeds from the bridge loan financing are then used to purchase a new property. Once the new property is secured, the original property is sold so the bridge loan can be paid off.

    When should one use a bridge loan?

    Bridge financing should be utilized when the borrower needs capital quickly and only for a short amount of time (approximately 12 months or less). The borrower must also have real property to use as collateral to borrow against or have a large enough down payment (35% or more) to use towards a purchase if they are acquiring a new property with the proceeds from the bridge loan financing.

    If a borrower is unable to obtain financing from a conventional lender due to credit issues, recent short sales or foreclosures on their record, or if they currently own too many properties, a hard money bridge loan would be a suitable short-term option.



    Best Online LPN to BSN Programs #online #nursing #bridge #programs


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    Best Online LPN to BSN Programs

    Many people enter the health care workforce as Licensed Practical Nurses (LPN), mainly due to the fact that it only takes around a year to complete the educational program that leads to this license.

    However, many would at some point like to further their career and job prospects with a more advanced degree. For most, the obvious choice is to earn a post-licensure Bachelor of Science in Nursing (BSN).

    Traditionally, students would enroll in an LPN to RN (Registered Nurse ) program, which would result in earning an associate’s degree in nursing (ADN) and an RN license in about 18 months time. They would then go on to enroll in a separate RN to BSN program, which would usually take another 18 months to complete.

    Thankfully, LPN-to-BSN bridge programs are now widely available, allowing LPNs to earn a BSN and RN license in just one program, and in less time. This efficient and cost-effective option has become a favorite among busy, working nurses trying to balance their careers and home life while at the same time furthering their education.

    Of course, busy LPNs aren’t always in a position to take time off from work and other obligations to go back to school. This has made online LPN/LVN to BSN bridge programs the go-to option.

    When exploring your education options, it’s always a good idea to look at everything that’s out there and really shop out the programs to compare the benefits of each.

    To help you get started, we listed five of our favorite online LPN/LVN to BSN bridge programs here.

    #1 Indiana State University

    At Indiana State University, students can take part in an online LPN/LVN to BSN program. However, to complete the degree, students do have to take part in some clinical experience, which is organized in the local area. Additionally, not all states accept online education for an LPN to BSN degree, so you must check this with your own State Board of Nursing.

    • Campus: Terre Haute, Indiana
    • Type: Public
    • Accreditation: ACEN
    • Tuition: Varies, please inquire
    • Minimum time commitment: Varies, please inquire
    • Degree requirements: LPN/LVN license, IT course, CPR, medical check, liability insurance, transcript
    • Programs: LPN/LVN to BSN
    • Request Information Direct: Indiana State University

    #2 North Dakota State University

    At NDSU, students who already hold an associate s degree can take part in the BSN online program. Those who do not currently hold an associate s degree can take part in 66 other college credits to count towards their degree program. Hence, this program is not reserved solely for those who already have an RN license.

    • Campus: Fargo, North Dakota Online
    • Type: Public
    • Accreditation: CCNE
    • Tuition: $3,822.96 for 12 credits
    • Minimum time commitment: 122 credits
    • Degree requirements: Associate s degree, or 66 completed college credits, LPN, prerequisite courses, GPA of 3.0 recommended
    • Programs: LPN to Bachelor of Science Nursing Option
    • Request Information Direct: North Dakota State University

    #3 The University of Oklahoma Health Sciences Center College of Nursing

    At the University of Oklahoma, students can take part in a licensed practical nurse to BSN degree program that is also delivered online. To accommodate all potential students, the degree is delivered full time in school, online and through weekend classes.

    • Campus: Oklahoma City, Oklahoma Online
    • Type: Public
    • Accreditation: ACEN
    • Tuition: $137.60 per credit hour for Oklahoma residents. $563.40 per credit hour for non residents
    • Minimum time commitment: Between 9 months and 2 years
    • Degree requirements: GPA of 2.5 minimum, prerequisite courses, NLN examination, one year employment, valid Oklahoma LPN license
    • Programs: Licensed practical nurse to BSN
    • Request Information Direct: University of Oklahoma

    Capella University Online Nursing Programs

    Capella University offers CCNE-accredited online nursing programs designed to meet the needs of RNs at every career stage:

    #4 Presentation College

    Presentation College is very proud to be offering a truly unique opportunity for LPNs to earn their BSN degree. Only 64 students are accepted for each term. All classes are delivered online, and some clinicals have to be complete at a virtual site offered by the school in Aberdeen, SD, Fargo, ND, or Fairmont, MN.

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  • Financing Options: Bridge Loans – AVC #bad #credit #mortgage


    #bridging loan
    #

    Financing Options: Bridge Loans

    Today s post in the financing options series on MBA Mondays is about Bridge Loans. Bridge loans are so called because they are a bridge to something else. They are short term loans intended to fund a company to an anticipated event in the future.

    Bridge loans exist in many sectors outside of the startup world. Big banks will often bridge companies to transactions they are putting together for them. Real estate transactions are often bridged to a closing. The concept of short term transaction driven loans is universal in business.

    In the startup world, bridge loans are a particularly interesting case to study. I ve been in and around startups for 25 years now and I have rarely seen a bridge loan made by anyone other than an existing investor or investor group. Most bridge loans in the startup world are made to money losing companies that are going to run out of funds before they can close a financing or sale transaction. These are very risky loans that will not get paid back unless a transaction happens and often the transactions that are required don t happen.

    If you could assemble a data dump of all bridge loans made by VCs and angel investors to startups over the past twenty five years, I think you d see that the aggregate performance of these bridge loans would be awful. I m certain that the performance of bridge loans made by firms I ve been associated with in that time is hugely negative. The loss rate is very high and the returns on the ones that work are not much better than a typical venture investment.

    So why do VCs and angels make bridge loans when they perform so poorly? There are two reasons, and they are related but they are not the same. First, investors like to give the companies and teams they have backed a chance at success. Contrary to the popular view, VCs and angels are supportive of their portfolio companies well beyond what a hard nosed rational investor would be. I have seen startup investors make follow on investments many times that make no sense other than on a doing the right thing basis. Second, many investors are playing defense with these loans. They know they ve made a weak or outright bad investment but they don t want to acknowledge it with a writeoff, so they keep putting in good money after bad.

    So bridge loans are often bad investments made defensively. And so they are red flags to other investors. When a new investor looks at a company and sees a bridge loan in place, they will understand that all is not well. This doesn t mean you shouldn t make or receive a bridge loan. It just means you will need to explain it. And it will make closing a financing more challenging.

    Bridge loans made in anticipation of a sale are a bit different. There is a really strong rationale for making a bridge loan in anticipation of a sale. The investors know that a sale is coming so a priced equity round doesn t make much sense. The company can t sell equity cheap relative to what the expected sale price will be. And if the equity is priced close to the expected sale price, then there will not be an equity return when the sale closes. So a loan makes the most sense. And bridge loans are the best kinds of loans to do in this situation. An acquirer will not be terribly surprised to see a bridge loan in place when they look at the books and thus it is not nearly the same kind of red flag as it is in an equity financing.

    When making a bridge loan, it is critical that the size of the loan be sufficient to get to the transaction you are bridging to. The bridge metaphor is a good one. You want the bridge to be long enough to cross the river. Otherwise it does no good. Getting a second bridge done is always very hard. So if you think you need three months to sell the company or get a fiancing done, get six months of burn in your bridge.

    The biggest concern investors will have in making a bridge is the probability of a tranaction closing. Investors will not make a bridge to nowhere. So before you can realistically ask for a bridge, you must build a strong case for the transaction you want the investors to bridge to. Getting a banker or an advisor hired to help you secure the transaction you want is one good way to give investors comfort in making a bridge. It doesn t guarantee that you will get a deal done, but it shows everyone that you are committed to making it happen.

    The terms of bridge loans are pretty standard. The loan will be secured by all the assets of the business that can be pledged. If there is existing bank debt or equipment financing, the bridge will be subordinate to those loans. And you will need the bank s cooperation getting a bridge done if there is a bank involved. Sometimes that is not easy.

    The loan will carry an interest rate of between 6% and 12% depending on the current rate environment and will have warrant coverage or a discount. We covered the concepts of warrant coverage and discounts in the convertible debt post earlier in this series. Bridge loans are a specialized form of convertible debt.

    In summary, bridge loans are common in all businesses. In the startup world they are often a sign of distress and for that reason you should try to avoid them if you can. But when you are sinking, any lifeline looks good and bridge loans are no different. Beggars can t be choosers. In a sale process, bridge loans are less problematic and are often the right solution to financing a company to a sale transaction. For startup investors, bridge loans in the aggregate are a poor performing investment and as an industry, we dislike making them. But like all of the tools at our disposal in the statup world, bridge loans are a reality of our lives, we will all experience them from time to time, and they can be a useful form of financing at a critical time in the life of a company.

    August 15, 2011 – MBA Mondays



    Bridge Loans – Hard Money Bridge Loan Lenders – North Coast Financial, Inc. #personal #loans #interest #rates


    #bridge loans
    #

    Bridge Loans Bridge Loan Lenders

    North Coast Financial are bridge loan lenders who have been providing real estate investors with hard money bridge loans for 35 years.  Offering fast approvals and funding. competitive rates and reliable service . North Coast Financial has established themselves as one of the top hard money bridge loan lenders in California.

    Bridge Loans Offered by North Coast Financial:

    • Property Types:

    Single family, multi-family, commercial, industrial, land

  • Loan Amounts:
    $25,000 – $1 Million+
  • Loan Terms:
    6 to 36 months, longer terms also available
  • Lien Positions:
    1sts and 2nds
  • Owner-Occupied Loans Available
  • Loan to Value (LTV):
    Up to 75% of current value of property
  • Prepayment Penalty:
    Minimum 3 months interest
  • Fees:

      No appraisal fees (in most situations)

      No hidden junk fees (underwriting, document, processing, etc.)

  • Bridge Loan Rates and Points:

    Please   contact us   for information on current rates and points

  • Hard Money Bridge Loans

    A bridge loan is a type of hard money loan used for short-term financing. Bridge financing typically has a term from one month to one year. Bridge loan rates are higher than traditional institution loans due to the increased risk. Bridge loan lenders are less concerned with the credit worthiness of the borrower since the bridge loan is secured by property. This is beneficial for borrowers who may currently have less than ideal credit but have equity in property.

    Bridge loans have lower loan to value (LTV) ratios than traditional mortgages obtained from banks in order to protect the lender from a borrower defaulting. The bridge loan lender will generally only allow for a loan to value ratio of 70-75%. The borrower may sell the property or arrange other long-term financing in order to pay off the bridge loan.

    Residential Bridge Loans and Commercial Bridge Loans

    Residential bridge loans and commercial bridge loans are both gaining popularity as a way to quickly acquire cash in order to take advantage of short-term real estate opportunities. Commercial bridge loans generally have a lower LTV than residential bridge loans and the bridge loan lenders will require additional information and documentation.

    A bridge loan may also be called a bridging loan, gap financing, interim financing or a swing loan.

    Bridge Loan Example

    An example of a traditional bridge loan would be when an investor owns a property and wishes to purchase a new property. The investor doesn t have sufficient funds to purchase the new property but needs to secure the new property before selling the existing property. The investor is able to use bridge loan financing to borrower against the property they already own to raise funds for the purchase of the new property.

    Once the new property is purchased, the investor can sell their original property and pay off the bridge loan. The bridge loan bridges the gap between the purchase of the new property and the sale of the existing property.

    North Coast Financial is an experienced hard money bridge loan lender. Contact us today to see how we can help you with your real estate financing needs.

    Bridge Loan Frequently Asked Questions:

    What is a bridge loan?

    A bridge loan is a short-term loan that “bridges the gap” between other types of long-term financing. Bridge financing is secured by real estate and have higher interest rates than conventional loans due to the higher risk associated with these loans. They are designed for investors and borrowers who are involved in real estate projects or transactions such as hard money rehabs, making improvements on land, and purchasing short sales or foreclosures. Residential bridge loans and commercial bridge loans are available to property owners who wish to borrower against the equity in their property.

    How does one get a bridge loan?

    Bridge loan financing is a straightforward process when compared to obtaining a financing from a conventional lender such as a bank or credit union. Simply contact a bridge loan lender and complete their application process. The bridge lender will require information about the borrower and the subject property. They will then analyze this information and confirm the value of the property. The bridge loan lender will then determine how much they can lend and what loan terms are available for the borrower. The loan should be able to be funded within a week.

    How do bridge loans work?

    The property owner borrows against real estate they already own and pulls out equity with the bridge loan. The proceeds from the bridge loan financing are then used to purchase a new property. Once the new property is secured, the original property is sold so the bridge loan can be paid off.

    When should one use a bridge loan?

    Bridge financing should be utilized when the borrower needs capital quickly and only for a short amount of time (approximately 12 months or less). The borrower must also have real property to use as collateral to borrow against or have a large enough down payment (35% or more) to use towards a purchase if they are acquiring a new property with the proceeds from the bridge loan financing.

    If a borrower is unable to obtain financing from a conventional lender due to credit issues, recent short sales or foreclosures on their record, or if they currently own too many properties, a hard money bridge loan would be a suitable short-term option.



    Bridge Loan Team – Call 888 310 0026 #monthly #car #payment


    #bridge loans
    #

    Apply Now

    Mortgaging your current home as you wait to move to a new home? No problem, talk to us on 888 310 0026 so that we can assist you finance your new home with a bride loan

    The nature of Bridge loans

    Lack of well defined standards on such issues as debt-income ratios by many financial institutions make it difficult for borrowers to benefit from short term financing. This is because borrowers who have existing mortgage obligations are excluded from entering into any financing for a home until they finish their current obligations. However, bridge loans exist to abolish such notions and instead consolidate any pre-existing mortgage to the one advanced for acquiring the new home. There are a number of reasons why many borrowers are co-opted into a second loan despite having an existing loan.

    The existence of an existing mortgage can be consolidated with bridge loan so that it becomes one loan. This enables the buyer to acquire a new home against their asset-the house.

    The house serves as a security in the sense that they will not be able to sell their old house until they complete the payment of the existing loans.



    Bridge Mortgage Loans #loan #calculator #uk


    #bridge loans
    #

    Bridge Loans can give you a Competitive Advantage

    In a seller’s market, the competition for houses can be fierce. Many sellers will turn down any offer they receive that has a contingency clause (for example, a clause that states the offer is contingent on the buyer selling their own house). This can be problematic for the buyer who does indeed have a house to sell.

    To stay competitive in a tight market, some buyers make the choice of securing a bridge loan (also known as a swing loan or bridge financing). A bridge loan covers the gap between the time a buyer closes on their new home and the time in which their old house sells.

    Typically a bridge loan is structured as a one year loan. The bridge loan pays off the buyer’s first house with the remaining funds, minus closing costs and six month’s of interest, going toward the down payment for the new house.

    If after six months the first house has not sold, the buyer will begin making interest-only payments on the bridge loan. When the first house sells, the bridge loan is paid-off. If the old house sells within the first six months, any unearned interest payments will be credited to the buyer.

    This is the typical bridge loan scenario for most buyers. In some cases a buyer may qualify for a bridge loan that simply adds the cost of their new house to their current debt.

    A bridge loan can help you make a competitive offer on a property even though your first house has yet to sell. Contact your loan officer for more information on bridge loans and to see if a bridge loan is right for your situation

    When ready, contact a Loan Officer to help determine the best loan for you!



    What Is a Mortgage Bridge Loan? #one #hour #loans


    #bridge loans
    #

    What Is a Mortgage Bridge Loan?

    Time Frame

    Bridge loans make the best financial sense when home sales are brisk. During sluggish economies, homes may take longer periods to sell. Using a bridge loan to close a new home purchase while carrying the existing mortgage can create a heavy burden for the borrower. For these reasons, financial advisers may recommend selling the original home, then obtaining a new mortgage.

    Types

    Bridge loans differ according to costs, conditions and terms. Certain bridge loans require the payoff of the homeowner’s first mortgage at closing; others simply add more debt to the borrower’s name. Bridge loans differ in the calculation of interest. A monthly repayment schedule at a fixed interest rate affords more certainty than a variable rate. The lender may also require heavy front-end or back-end payments. Borrowers may qualify for unsecured bridge loans, according to “The Mortgage Encyclopedia: The Authoritative Guide to Mortgage Programs.”

    Specific terms, rather than open-ended bridge loans, also provide more certainty to borrowers. The lender’s home usually collateralizes the bridge loan. A bridge lender may also claim the new mortgage loan’s underwriting as a requirement for the bridge. Interest rates differ according to the institution and borrower credit. An existing mortgagor, depending on the lender’s payment history, may extend a new bridge loan.

    Considerations

    Calculate the real cost of a bridge loan before agreeing to the terms. For example, origination costs, fees, closing costs and interest charges may whittle away equity of an existing home. Bridge loan fees can be costly. If a customer pays several thousand dollars in closing costs, then 1 to 4 percent of the loan’s value in origination fees, she has less money to buy a new home. Less-than-robust real estate markets add to the danger of real estate bridge loans. If the lender’s existing home takes more time to sell than the bridge loan’s original term — usually six months or more — the bridge loan costs continue to accrue. In the worst case, the borrower may lose her original home to the lender to pay off the bridge loan.

    Warning

    Bridge loans may assess penalties for early repayment. Read the lender contract carefully to determine any costs associated with the schedule of payments and terms. Consult your tax adviser about a bridge loan’s deductibility. Unsecured bridge loans aren’t mortgages. Consider the date of debt in both the bridge loan and new mortgage. Using the date of application of the mortgage loan may ease this issue if the bridge loan isn’t secured by home equity.

    Prevention/Solution

    Alternatives may provide less-costly solutions to mortgage bridge loans. Offer a contingent sale agreement when bidding on a new home. Sellers may reject this proposal in a brisk home sales environment, but they may accept this type of agreement during sluggish markets. Borrowing funds from a retirement plan or money from family and friends may also provide a more attractive solution than a mortgage bridge loan.



    Bridge Loans – Texas Mortgage Center #home #loans


    #bridging loan
    #

    Bridge Loans

    Bridge the Financial Gap with a Bridge Loan

    Bridge loans are defined as short-term loans that bridge the gap between an immediate need for funding and the closing of long-term financing. With good cash flow, banks will provide bridge loans, but often the requirements for the loan are too steep.

    A bridge home loan can be obtained to pay off the existing mortgage on an old house when your are purchasing a new home. If the old home doesn t sell, the borrower generally begins making interest only payments on the bridge loan. A bridge home loan usually requires a large prepaid interest amount. The bridge loan is paid off when the old home sells, and any unearned interest is credited back to the borrower.

    Under the terms of a traditional bridge loan, the borrower has no monthly payments. Instead, the loan and all interest are due at the end of the loan term, often 90 to 180 days. A bridge home loan, plus the amount of other mortgages, should not exceed eighty percent of the market value of the home being sold. The bridge amount sometimes, but rarely, is extended to 90% of the home for sale. The lender takes into consideration the borrower s credit history when making this decision.

    Bridge loan interest rates

    Bridge loan interest rates are often the prime rate plus one percentage point. However, bridge loan interest rates can vary depending on the borrower s credit history.

    Bridge loans: Other options

    Instead of a bridge loan, some borrower s should consider taking out an equity loan or home equity line of credit based on the equity of the home for sale.

    Bridge loans can make the difference between making a purchase or missing out on a purchase. If you have more time, you should look for other financing options, but if you need to move quickly, a bridge loan might be the only way to go.



    Bridge Loan Calculator #paydayloans


    #bridging loan
    #

    Bridge Loan Calculator

    Bridge loans are most commonly reserved for real estate financing though they don’t have to be. A bridge loan is usually a short term loan that provide funds for purchasing an asset (such as a home) when the cash-on-hand along with the primary loan is not enough to pay for the asset.

    For example, if you currently have $50,000 cash and a home that you are selling for $400,000 for which there is a balance on the mortgage of $200,000 and you plan to buy a home for $800,000, you might be a candidate for a bridge loan.

    If the lending institution for the new mortgage requires that you put a deposit of 20% down, $160,000, at closing, you will not have the cash if the closing has not taken place on your current home. This is where a bridge loan can be used.

    $800,000 new home

    -$50,000 cash on hand

    -$640,000 mortgage available

    $110,000 covered by bridge loan

    The new home mortgage will be $640,000 (800,000 – 160,000 = 640,000). The selling price less the cash on hand and the mortgage money available leaves a short of $110,000. This is the amount covered by the bridge loan. A bridge loan is typically an interest only loan. This means you make only interest payments. The loan is also usually a short term loan offered at a higher interest rate. The idea is that once the first property is sold, the bridge loan will be paid off immediately from the $200,000 net proceeds from the sale of the first house.

    That’s the background. This calculator will calculate your total payment for the primary new mortgage and the interest only bridge loan payment. The bridge loan has no term for it is due when the closing occurs on the first house. The only thing you have to know about the bridge loan is the annual rate of interest you’ll be charged.

    Anticipated Bridge Loan Term? (#) Enter number of months you anticipate needing a bridge loan. That is, how many months you think it will be until you close on the property you are selling. This value does not impact the bridge loan amount. It impacts the payment schedule and charts.

    This calculator makes these assumptions:

    1) payment for both loans are made monthly

    2) the bridge loan is an interest only loan (payments never go toward principal)



    Bridge Loan Team – Call 888 310 0026 #doorstep #loans


    #bridge loans
    #

    Apply Now

    Mortgaging your current home as you wait to move to a new home? No problem, talk to us on 888 310 0026 so that we can assist you finance your new home with a bride loan

    The nature of Bridge loans

    Lack of well defined standards on such issues as debt-income ratios by many financial institutions make it difficult for borrowers to benefit from short term financing. This is because borrowers who have existing mortgage obligations are excluded from entering into any financing for a home until they finish their current obligations. However, bridge loans exist to abolish such notions and instead consolidate any pre-existing mortgage to the one advanced for acquiring the new home. There are a number of reasons why many borrowers are co-opted into a second loan despite having an existing loan.

    The existence of an existing mortgage can be consolidated with bridge loan so that it becomes one loan. This enables the buyer to acquire a new home against their asset-the house.

    The house serves as a security in the sense that they will not be able to sell their old house until they complete the payment of the existing loans.



    Land Only Loan – Texas Hard Money Land Lender – Raw Land Loans Florida – Private Bridge Financing – Short Term Land Loan – California – Arizona – Texas – Florida – South Carolina #home #equity #loan #calculator


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    Thank you for visiting. Please feel free to call us if you have questions. We actually enjoy conversations regarding your opportunity. You can count on us to give you a quick and HONEST answer if you deal has a possibility to obtain financing. Toll Free at 888-375-5355 .

    We are VERY knowledgeable on most land types, situations, and financing options. Simply call us now to discuss your opportunity and one of our specialist will be more than happy to help.

    Experience: Landloan.com is headquartered in Indianapolis, Indiana and are able to review land opportunities most anywhere in the United States of America. For all private hard money scenarios, our group of investors make underwriting decisions in house. If you are a well qualified sponsor, our regional/ national banks, credit unions are unmatched in the industry.

    Quality: We are committed to excellence in everything we do. From first discussion to closing, we are here to serve you honestly and professionally.

    Flexibility: Understanding that not all borrowers and properties are alike, the structure of your land loan financing is very important unique.



    How to Calculate a Bridge Loan #grants #for #school


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    How to Calculate a Bridge Loan

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    Function of a Bridge Loan

    Bridge loans are short-term financing vehicles intended to cover a gap between the time you purchase a new home and sell the old one. Six months is a typical time frame for a bridge loan. Homeowners use bridge loans to obtain cash for a down payment on a new house quickly. Some homeowners choose bridge loans to pay off mortgages and forestall foreclosure. The bridge loan buys these distressed homeowners more time to sell the property instead.

    How a Bridge Loan Works

    Suppose you are moving because your employer has transferred you. You go to a lender and take out a bridge loan against the equity in your current house to use as a down payment on a new house. The amount you borrow includes points, fees and interest points. Terms of a bridge loan vary. For example, some lenders allow you to borrow enough to pay off your old mortgage. Your current home is collateral for the bridge loan. When the current property is sold, the money pays off the bridge loan.

    Calculating Bridge Loans

    To calculate a bridge loan, you need to know how much money is required as a down payment on the new property as well as the outstanding balance of the current mortgage. You also need to know the fees and points the lender will charge. Suppose your home is appraised at $250,000 and the lender will allow up to 80 percent of that amount to raise cash and pay off the old mortgage, or $200,000. The current mortgage balance is $150,000. Assume this lender charges 2 points, meaning 2 percent of the bridge loan amount of $200,000. Add 1 percent in prepaid interest and fees. Points and fees come to $6,000. Subtract $6,000 and $150,000 from the $200,000 loan amount. You have $44,000 cash to make a down payment on the new house.

    The Upside and Downside

    If you need to get out of your old home and mortgage quickly, a bridge loan can be a lifesaver because it can raise the cash to buy the home you want before another buyer beats you to it. However, bridge loans can be expensive. In the example above, the cost is $6,000 plus the interest that accrues until the loan is paid off. Bridge loans also carry risk. Your existing home is collateral and can be foreclosed on if the loan isn t paid. That can happen if the property doesn t sell before the bridge loan comes due or if the housing market turns sour and you are unable to sell for enough to pay off the bridge loan.



    Bridge Loan Calculator #401k #loans


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    Bridge Loan Calculator

    Bridge loans are most commonly reserved for real estate financing though they don’t have to be. A bridge loan is usually a short term loan that provide funds for purchasing an asset (such as a home) when the cash-on-hand along with the primary loan is not enough to pay for the asset.

    For example, if you currently have $50,000 cash and a home that you are selling for $400,000 for which there is a balance on the mortgage of $200,000 and you plan to buy a home for $800,000, you might be a candidate for a bridge loan.

    If the lending institution for the new mortgage requires that you put a deposit of 20% down, $160,000, at closing, you might not have the cash if the closing has not taken place on your current home. This is where a bridge loan can be used.

    $800,000 new home

    -$50,000 cash on hand

    -$640,000 mortgage available

    $110,000 covered by bridge loan

    The new home mortgage will be $640,000 (800,000 – 160,000 = 640,000). The selling price less the cash on hand and the mortgage money available leaves a short of $110,000. This is the amount covered by the bridge loan. A bridge loan is typically an interest only loan. This means you make only interest payments. The loan is also usually a short term loan offered at a higher interest rate. The idea is that once the first property is sold, the bridge loan will be paid off immediately from the $200,000 net proceeds from the sale of the first house.

    That’s the background. This calculator will calculate your total payment for the primary new mortgage and the interest only bridge loan payment. The bridge loan has no term for it is due when the closing occurs on the first house. The only thing you have to know about the bridge loan is the annual rate of interest you’ll be charged.

    This calculator makes these assumptions:

    1) payment for both loans are made monthly

    2) the bridge loan is an interest only loan (payments never go toward principal)



    Bridge Loans: Are the Risks Worth the Rewards? #bad #credit #loans #not #payday #loans


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    #

    Bridge Loans: Are the Risks Worth the Rewards?

    Bridge loans are used when a borrower who has not sold his current home wants to purchase a new home. These loans work to bridge the gap between the sales price of the original home and the purchase price of the replacement home. The bridge loan is secured to the original home, the one that’s on the market. The funds from that loan are used as the down payment for the mortgage on the new replacement, or move up, home.

    How Do Bridge Loans Work?

    Generally speaking, lenders don t have a set of guidelines when it comes to qualifying for a bridge loan like other programs do. Most lenders will qualify the buyers based on two payments–the payment they make on their current home until it sells, and the payment they make on their new home when they move in. This is because until the first home sells, the buyers will technically own two homes and be responsible for both payments. If the buyers cannot handle this in terms of credit and income, they will likely not be approved for the bridge loan.

    If the mortgage for the new home is a conforming mortgage, there is more leeway for the underwriters to approve a higher debt to income ratio. If not, the underwriters will usually restrict the debt to income ratio at 50 percent.

    What are the Typical Fees Associated with Bridge Loans?

    Expect to pay an origination fee based on the amount of the loan. An admin fee of around $750 will be charged, in addition to an appraisal fee of around $350. An escrow and title fee of around the same amount will be charged. Add in a notary fee averaging about $40, with a recording fee of $60, and a wire fee of about $75. Not including origination fees which will be based on a number of points equal to one percent of the loan amount per point, the buyer is looking at nearly $2,000.

    The Benefits of Using Bridge Loans

    With a bridge loan, buyers can put their current home on the market with no worries or restrictions. The bridge loan may not require a payment for a few months, giving the buyers time to sell their home and get situated in the new one.



    Bridge Loans – Texas Mortgage Center #bridge #loan


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    Bridge Loans

    Bridge the Financial Gap with a Bridge Loan

    Bridge loans are defined as short-term loans that bridge the gap between an immediate need for funding and the closing of long-term financing. With good cash flow, banks will provide bridge loans, but often the requirements for the loan are too steep.

    A bridge home loan can be obtained to pay off the existing mortgage on an old house when your are purchasing a new home. If the old home doesn t sell, the borrower generally begins making interest only payments on the bridge loan. A bridge home loan usually requires a large prepaid interest amount. The bridge loan is paid off when the old home sells, and any unearned interest is credited back to the borrower.

    Under the terms of a traditional bridge loan, the borrower has no monthly payments. Instead, the loan and all interest are due at the end of the loan term, often 90 to 180 days. A bridge home loan, plus the amount of other mortgages, should not exceed eighty percent of the market value of the home being sold. The bridge amount sometimes, but rarely, is extended to 90% of the home for sale. The lender takes into consideration the borrower s credit history when making this decision.

    Bridge loan interest rates

    Bridge loan interest rates are often the prime rate plus one percentage point. However, bridge loan interest rates can vary depending on the borrower s credit history.

    Bridge loans: Other options

    Instead of a bridge loan, some borrower s should consider taking out an equity loan or home equity line of credit based on the equity of the home for sale.

    Bridge loans can make the difference between making a purchase or missing out on a purchase. If you have more time, you should look for other financing options, but if you need to move quickly, a bridge loan might be the only way to go.



    Mortgages: Bridge loans ease the transition between homes – at a cost #payday #loans #for #people #on #benefits


    #bridging loans
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    Bridge loans ease the transition from one home to another — at a cost

    They can save the day for home buyers in a pinch, but people looking for a “bridge loan ” to span the gap between the sale of an old home and the purchase of a new one should ask if the cost is worth it.

    Experts say it almost never is, and people would be better off staying put until they’ve unloaded their first residence. If that’s impossible, they warn, be prepared to shoulder a heavy burden.

    “There are many sad stories about homeowners who took bridge loans, and our best advice would be, ‘Don’t do it,’ ” says Richard Roll, president of the American Homeowners Association in Stamford, Conn. “You can find yourself in a totally untenable position, and you can lose your first house.”

    Terms can vary widely

    A tool used by movers in a bind, bridge loans vary widely in their terms, costs and conditions. Some are structured so they completely pay off the old home’s first mortgage at the bridge loan’s closing, while others pile the new debt on top of the old. Borrowers also may encounter loans that deal differently with interest. Some carry monthly payments, while others require either up-front or end-of-the-term lump-sum interest payments.

    Most share a handful of general characteristics though. They usually run for six month terms and are secured by the borrower’s old home. A lender also seldom extends a bridge loan unless the borrower agrees to finance the new home’s mortgage with the same institution. As for rates, they accrue interest at anywhere from the prime rate to prime plus 2 percent.

    One Norwest Corp. bridge loan, for example, would total $70,000 on a customer’s old $100,000 home with $50,000 in mortgage debt outstanding, says Patty Stubbs, branch operations supervisor for the company’s Des Moines, Iowa mortgage division. Of that, $50,000 would go toward the old house’s lien and a few thousand would cover the bridge loan’s closing costs, origination charges and fees, leaving the customer with about $16,000 for the new home’s down payment, closing costs and fees.

    This example helps to show how the high fees associated with bridge loans can cause problems. Norwest’s customer, for example, would end up paying between $2,000 and $3,000 for closing on the bridge loan, 1.5 percent to 2 percent of its value for an origination fee, and another couple thousand dollars for closing on the new home’s mortgage.

    What if the sale goes sour?

    Real estate market risks can exacerbate the danger, Roll says. For example, Norwest and others are usually willing to extend bridge loans slightly beyond the standard six months. But what happens to a homeowner who gets the financing and extension, so the old home’s buyer can have a little more time, only to see the transaction fall through?

    “Let’s say they need some of that money to buy their new house, so it’s predicated on selling their old house,” Roll says. “What happens if they don’t sell that house, or if the buyer doesn’t get financing?”

    In such a case, the lender could go as far as to foreclose on the old property after the bridge loan extensions expired, Stubbs says, or a customer could deed the property to the bank, which would sell it and apply the proceeds toward paying off the loan.

    Consider other options

    For those trying to stay away from bridge financing, borrowing against a 401(k) plan or taking out loans secured by stocks, bonds or other assets are options, says Kevin Hughes, a mortgage loan specialist at Cambridgeport Bank, based in Cambridge, Mass. Some lenders also offer hybrid mortgage products that behave similarly to bridge loans.

    For example, a Cambridgeport customer with $50,000 equity on a $100,000 home, for example, could obtain a combination first and second mortgage on a second $100,000 home, Hughes says. Only one set of closing costs of about $1,300 would be required, with about $184 in additional costs for the second mortgage.

    As part of the bank’s program, that person would make a $10,000 down payment on the new property, which would have both a first mortgage for $50,000 and a second for $40,000. Upon selling the old home, the borrower could use the $50,000 worth of equity to simultaneously pay off the new home’s second mortgage and recoup the money that covered the down payment.

    Total debt climbs

    Whether a homeowner takes a bridge loan or a hybrid stand-in, however, a significant amount of new debt will end up being added to the pile. The Cambridgeport borrower, for instance, would have to make three payments each month in order to cover the old home’s mortgage, and the first and second mortgages on the new house.

    But even though they aren’t the best deal, bridge loans or other short-term mortgage financing products may be necessary when home buyers land in tight spots, lenders say. There will always be people relocating for work without much advance notice, trying to keep others from beating them to the punch on a property, or needing help with the expensive up-front costs of buying a new home before their old one sells.

    “It’s a way for the customer to get into that home without having to go through all the gyrations of trying to get cash for a down payment,” says John Bollman, a mortgage product manager with National City Corp. in Dayton, Ohio. “The Realtors tend to use it as a tool to help buyers buy their home.”

    Bridge loans nevertheless remain relatively obscure in a lending landscape dominated by more widely publicized home equity loans and lines of credit. A fast-churning real estate market also eases the demand because it shortens the amount of time it takes for people to sell their homes, Hughes says.

    Norwest, for instance, said only 140 of the 240,122 mortgage loans it extended last year were bridge loans, while Continental Savings Bank, based in Seattle, closes just four bridge loans a month on average out of 775 total mortgages.



    If you think you need a bridge loan #instant #approval #payday #loans


    #bridging loan
    #

    Real Estate Mortgage Insights

    If You Think You Need a Bridge Loan

    You’re thinking of buying a house so you go out with a real estate agent and find the perfect “move-up” home. You fall in love with it. If you’re a married man, your wife falls in love with it. Same difference. So you present an offer. The only problem is that you need to sell your house in order to buy that house.

    But you haven’t even put your house on the market yet.

    So you make a “contingent” offer. Your offer to buy is contingent upon your ability to sell your house in time to close.

    You haven’t even listed your house yet. That’s a little bit “too” contingent for most sellers nowadays. They are likely to turn you down.

    Bummer.

    In hindsight, you realize you should have listed your house first, got an offer (and accepted it), then gone out looking for a new home.

    But it’s too late and you really want that home.

    The real estate agent suggests you get a “bridge loan.” If you have enough equity in your present home, this is a special loan that allows you to get some cash so you can make a down payment and buy the new home. Interest rates are high, points are high, and there are costs and fees involved.

    It’s cheaper to borrow from your 401K (if you have enough money in it). Lenders allow that as a source of funds for down payment. Any secured loan is an acceptable source of funds for a down payment. If you have stocks or bonds or an insurance policy, you can borrow against that, too. Even a car. Any loan “secured” by a physical or financial asset.

    Or you can get a “gift” from a family member to make up whatever shortfall you need.

    Or. if you have enough equity and can qualify for a bridge loan, you can qualify for a home equity line. It only costs about $350 at your local bank.

    Just get the loan before you list your property for sale.

    © February 2003 by RealEstate ABC

    All rights reserved. This entire page and all interior items protected by copyright



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    #best home loan rates australia
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    RBA Cash rate changes in past 5 years:

    What is best fixed rate home loan ?

    Bank offer very lower rate on introductory interest rate to sign up new clients to their home loans. But if client does not have any historical record about their usual interest rates, that means they are signing up for something very expensive without any prior knowledge.

    To select the best fixed rate home loan, we need to understand the current market situation in term of reserve bank cash rate. If the cash rate is at usual state, or lower than usual state, it means it is risk free to take a fixed rate home loan. Some times when the cash rate remains too low, at that period of time variable rates from banks become lower than previous years fixed rate, or a fixed rate from year before. As a result it is lower in risk factors to take home loan at maximum of 3 years fixed rate. In most cases difference between total savings in 3 years on interest from a 3 years fixed rate home loan with total savings on interest from a 5 years fixed rate home loan is insignificant.

    Considering above it is lower in risk to have maximum 3 years fixed rate home loan to have best benefit on interest. And it is better not to have a fixed rate home loan when cash rate is at pick stage and it is obvious the cash rate will be reduced by next year or so.

    Click here to find current home loan interest rate offers.

    What portion of home loan should be on 3 years fixed rate home loan ?



    Bridge Loans and Home Purchase Bridge Loans #low #apr #loans


    #bridging loans
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    Bridge Loans

    A bridge loan is basically a short term loan taken out by a borrower against their current property to finance the purchase of a new property.

    Also known as a swing loan, gap financing, or interim financing, a bridge loan is typically good for a six month period, but can extend up to 12 months. Most bridge loans carry an interest rate roughly 2% above the average fixed-rate product and come with equally high closing costs.

    Bridge loans are generally taken out when a borrower is looking to upgrade to a bigger home, and haven’t yet sold their current home. A bridge loan essentially “bridges the gap” between the time the old property is sold and the new property is purchased.

    Home Buying Contingencies

    Many purchase contracts have contingencies that allow the buyer to agree to the terms only if certain actions occur. For example, a buyer may not have to go through with the purchase of the new home they are in contract for unless they re able to sell their old home first. This gives the buyer protection in the event no one buys their home, or if nobody is willing to buy the property at the terms they desire.

    When a seller won’t accept the buyer’s contingency, a bridge loan might be the next best way to finance the new home.

    How Do Bridge Loans Work?

    A bridge loan can be structured so it completely pays off the existing liens on the current property, or as a second loan on top of the existing liens. In the first case, the bridge loan pays off all existing liens, and uses the excess as down payment for the new home. In the latter example, the bridge loan is opened as a second or third mortgage, and is used solely as the down payment for the new property.

    If you choose the first option, you likely won’t make monthly payments on your bridge loan, but instead you’ll make mortgage payments on your new home. And once your old house sells, you’ll use the proceeds to pay off the bridge loan, including the associated interest and remaining balance.

    If you choose the second option, you’ll still need to make payments on your old mortgage (s) and the new mortgage attached to your new property, which can stretch even the most well-off homeowner’s budget. So make sure you’re able to take on such payments for up to a year if necessary.

    Most consumers don’t use bridge loans because they aren’t necessary during housing booms and hot markets. For example, if your home goes on the market and sells within a month, it’s typically not necessary to take out a bridge loan. But now that things have cooled off, they may become a bit more common as sellers experience more difficulty in unloading their homes.

    Bridge Loans Can Be Risky

    Many critics find bridge loans to be risky, as the borrower essentially takes on a new loan with a higher interest rate and no guarantee the old property will sell within the allotted life of the bridge loan. However, borrowers usually doesn’t need to pay interest in remaining months if their home is sold before the term of the bridge loan is complete. But watch out for prepayment penalties that hit you if you pay the loan off too early!

    Make sure you do plenty of research before selling your home to see what asking prices are and how long homes are generally listed before they re ultimately sold. The market may be strong enough so that you don’t need a bridge loan. But if you do need one, be aware that a home could go unsold for six months, or longer, so negotiate terms that allow for an extension to the bridge loan if necessary.

    If you think a bridge loan is right for you, try to work out a deal with a single lender that provides both your bridge loan and long-term mortgage. Usually they’ll give you a better deal, and a safety net as opposed to going with two different banks or lenders.

    Also keep in mind that there are other alternatives to a bridge loan such as financing down payments with your 401k, stocks, and other assets. Remember to compare each scenario before signing anything!



    Bridge Loans – Hard Money Bridge Loan Lenders – North Coast Financial, Inc.


    #bridge loans
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    Bridge Loans Bridge Loan Lenders

    North Coast Financial are bridge loan lenders who have been providing real estate investors with hard money bridge loans for 35 years.  Offering fast approvals and funding. competitive rates and reliable service . North Coast Financial has established themselves as one of the top hard money bridge loan lenders in California.

    Bridge Loans Offered by North Coast Financial:

    • Property Types:

    Single family, multi-family, commercial, industrial, land

  • Loan Amounts:
    $25,000 – $1 Million+
  • Loan Terms:
    6 to 36 months, longer terms also available
  • Lien Positions:
    1sts and 2nds
  • Owner-Occupied Loans Available
  • Loan to Value (LTV):
    Up to 75% of current value of property
  • Prepayment Penalty:
    Minimum 3 months interest
  • Fees:

      No appraisal fees (in most situations)

      No hidden junk fees (underwriting, document, processing, etc.)

  • Bridge Loan Rates and Points:

    Please   contact us   for information on current rates and points

  • Hard Money Bridge Loans

    A bridge loan is a type of hard money loan used for short-term financing. Bridge financing typically has a term from one month to one year. Bridge loan rates are higher than traditional institution loans due to the increased risk. Bridge loan lenders are less concerned with the credit worthiness of the borrower since the bridge loan is secured by property. This is beneficial for borrowers who may currently have less than ideal credit but have equity in property.

    Bridge loans have lower loan to value (LTV) ratios than traditional mortgages obtained from banks in order to protect the lender from a borrower defaulting. The bridge loan lender will generally only allow for a loan to value ratio of 70-75%. The borrower may sell the property or arrange other long-term financing in order to pay off the bridge loan.

    Residential Bridge Loans and Commercial Bridge Loans

    Residential bridge loans and commercial bridge loans are both gaining popularity as a way to quickly acquire cash in order to take advantage of short-term real estate opportunities. Commercial bridge loans generally have a lower LTV than residential bridge loans and the bridge loan lenders will require additional information and documentation.

    A bridge loan may also be called a bridging loan, gap financing, interim financing or a swing loan.

    Bridge Loan Example

    An example of a traditional bridge loan would be when an investor owns a property and wishes to purchase a new property. The investor doesn t have sufficient funds to purchase the new property but needs to secure the new property before selling the existing property. The investor is able to use bridge loan financing to borrower against the property they already own to raise funds for the purchase of the new property.

    Once the new property is purchased, the investor can sell their original property and pay off the bridge loan. The bridge loan bridges the gap between the purchase of the new property and the sale of the existing property.

    North Coast Financial is an experienced hard money bridge loan lender. Contact us today to see how we can help you with your real estate financing needs.

    Bridge Loan Frequently Asked Questions:

    What is a bridge loan?

    A bridge loan is a short-term loan that “bridges the gap” between other types of long-term financing. Bridge financing is secured by real estate and have higher interest rates than conventional loans due to the higher risk associated with these loans. They are designed for investors and borrowers who are involved in real estate projects or transactions such as hard money rehabs, making improvements on land, and purchasing short sales or foreclosures. Residential bridge loans and commercial bridge loans are available to property owners who wish to borrower against the equity in their property.

    How does one get a bridge loan?

    Bridge loan financing is a straightforward process when compared to obtaining a financing from a conventional lender such as a bank or credit union. Simply contact a bridge loan lender and complete their application process. The bridge lender will require information about the borrower and the subject property. They will then analyze this information and confirm the value of the property. The bridge loan lender will then determine how much they can lend and what loan terms are available for the borrower. The loan should be able to be funded within a week.

    How do bridge loans work?

    The property owner borrows against real estate they already own and pulls out equity with the bridge loan. The proceeds from the bridge loan financing are then used to purchase a new property. Once the new property is secured, the original property is sold so the bridge loan can be paid off.

    When should one use a bridge loan?

    Bridge financing should be utilized when the borrower needs capital quickly and only for a short amount of time (approximately 12 months or less). The borrower must also have real property to use as collateral to borrow against or have a large enough down payment (35% or more) to use towards a purchase if they are acquiring a new property with the proceeds from the bridge loan financing.

    If a borrower is unable to obtain financing from a conventional lender due to credit issues, recent short sales or foreclosures on their record, or if they currently own too many properties, a hard money bridge loan would be a suitable short-term option.



    What Is a Mortgage Bridge Loan?


    #bridge loans
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    What Is a Mortgage Bridge Loan?

    Time Frame

    Bridge loans make the best financial sense when home sales are brisk. During sluggish economies, homes may take longer periods to sell. Using a bridge loan to close a new home purchase while carrying the existing mortgage can create a heavy burden for the borrower. For these reasons, financial advisers may recommend selling the original home, then obtaining a new mortgage.

    Types

    Bridge loans differ according to costs, conditions and terms. Certain bridge loans require the payoff of the homeowner’s first mortgage at closing; others simply add more debt to the borrower’s name. Bridge loans differ in the calculation of interest. A monthly repayment schedule at a fixed interest rate affords more certainty than a variable rate. The lender may also require heavy front-end or back-end payments. Borrowers may qualify for unsecured bridge loans, according to “The Mortgage Encyclopedia: The Authoritative Guide to Mortgage Programs.”

    Specific terms, rather than open-ended bridge loans, also provide more certainty to borrowers. The lender’s home usually collateralizes the bridge loan. A bridge lender may also claim the new mortgage loan’s underwriting as a requirement for the bridge. Interest rates differ according to the institution and borrower credit. An existing mortgagor, depending on the lender’s payment history, may extend a new bridge loan.

    Considerations

    Calculate the real cost of a bridge loan before agreeing to the terms. For example, origination costs, fees, closing costs and interest charges may whittle away equity of an existing home. Bridge loan fees can be costly. If a customer pays several thousand dollars in closing costs, then 1 to 4 percent of the loan’s value in origination fees, she has less money to buy a new home. Less-than-robust real estate markets add to the danger of real estate bridge loans. If the lender’s existing home takes more time to sell than the bridge loan’s original term — usually six months or more — the bridge loan costs continue to accrue. In the worst case, the borrower may lose her original home to the lender to pay off the bridge loan.

    Warning

    Bridge loans may assess penalties for early repayment. Read the lender contract carefully to determine any costs associated with the schedule of payments and terms. Consult your tax adviser about a bridge loan’s deductibility. Unsecured bridge loans aren’t mortgages. Consider the date of debt in both the bridge loan and new mortgage. Using the date of application of the mortgage loan may ease this issue if the bridge loan isn’t secured by home equity.

    Prevention/Solution

    Alternatives may provide less-costly solutions to mortgage bridge loans. Offer a contingent sale agreement when bidding on a new home. Sellers may reject this proposal in a brisk home sales environment, but they may accept this type of agreement during sluggish markets. Borrowing funds from a retirement plan or money from family and friends may also provide a more attractive solution than a mortgage bridge loan.