bridge loan or second Mortgage

Discussion in 'Real Estate General Discussions' started by Rocky, Mar 12, 2012.

  1. Rocky

    Rocky Active Member

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    I have 2 properties one of which i intend to sell. The prior one is becoming available during Mar next year which i intend to keep, the second one is going to become available by May of next year which i hopefully will be able to sell in about 4 months the latest.

    My question is, in a situation like this - i will have to hold 2 properties for almost a period of 6 months (hypothetically speaking). Should i use a bridge loan for such or can i clear a second mortgage for the time being and pay that back once the second property is sold, the amount that i will clear off from the second property sale - will be used towards additional DP for the first home.

    In my situation, what would be the best financially for me to do, in order to limit my property carrying cost for those 6 months. Please share your knowledge regarding this avenue.
     
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  2. aznbb4l

    aznbb4l New Member

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    When you compare a mortgage vs. bridge loan,
    typically bridge loan is unsecured - you pay higher interest / mortgage is secured by property - you pay lower interest

    Could you clarify your situation further?
    ie: Do you currently have a mortgage for property #1 and #2?
     
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  3. W. K. Lis

    W. K. Lis Senior Member

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    You will also have to pay higher fees, like to a lawyer. At the end of the mortgage, when paid off, you also have to pay discharge fees.
     
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  4. aznbb4l

    aznbb4l New Member

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    Good point!
    If you get a second mortgage on your property#1
    it might require you to re-register your property to a higher value...
    if that's the case, it will be very costly...
     
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