A bridge loan is a short-term loan used until a person or company secures permanent financing or pays an existing obligation. It allows the borrower to meet current obligations by providing immediate cash flow. Bridge loans have relatively high-interest rates and are usually backed by some form of collateral, such as real estate or the inventory of a business. Our knowledgeable team at Quintessential Mortgage Group can find you the best solution.
Bridge loans typically have a faster application, approval, and funding process than traditional loans. However, in exchange for convenience, these loans tend to have relatively short terms, high-interest rates, and large origination fees.
Generally, borrowers accept these terms because they require fast, convenient access to funds. They are willing to pay high-interest rates because they know the loan is short-term and plan to pay it off quickly with low-interest, long-term financing. In addition, most bridge loans do not have repayment penalties.
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