Accessibility Menu

What Is a Bridge Loan?

By Frank BassUpdated Apr 2, 2025 at 6:07 PM

Key Points

  • Bridge loans offer short-term financing when you want to use your proceeds from selling a home to buy a new one.
  • They typically have higher interest rates compared to traditional mortgages.
  • A bridge loan is useful for homebuyers in competitive markets who want to quickly close on a new property.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.