The
typical term for a bridge loan runs
from a single month to as long as two
years. Of course, any terms can be negotiated
and a motivated broker will work hard
to find a lender to match your needs.
Since bridging finance usually lasts
for a relatively short period you may
find that the interest rate you are
being asked to pay is slightly higher
than a more conventional type of loan.
Lenders make their profit by charging
interest across the life of the loan.
The shorter the loan period the less
interest they earn. As a result many
lenders will often boost the rate by
a 1/2 point or more. In general, the
length of the loan, the amount of risk
that is present for the lender, the
quality of your credit history and the
liquidity and value of your collateral
all are used to help determine the interest
rate.
Your best bet for securing a bridge
loan at the most favorable rates and
terms is to work with us at The One
Stop Loan Shop as we understand the
ins and outs of bridge loans. That way
you can get your application in front
of as many lenders as possible and end
up with several who are willing to compete
for your business.
