bridge loan

Definition

A short-term loan that helps you buy a new home before selling your current one, literally bridging the financial gap. It's expensive money that lets you avoid the nightmare of moving twice or living in your in-laws' basement.

Example Usage

We took out a bridge loan because the thought of contingent offers in this market made us break out in hives.

Origin

Financial terminology from the 1960s, referring to the temporary 'bridge' between transactions

Fun Fact

Bridge loans typically carry interest rates 2-3% higher than conventional mortgages because lenders know you're desperate.

Source: Mortgage and real estate financing terminology

Related Terms

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Buyers Market

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mechanic's lien

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disclosures

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