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Bridge Loan Cost
Calculator

Total bridge loan principal
Bridge loans typically 9-12%
Origination points: typically 2-3%
Expected hold time before payoff or refinance
Title, appraisal, attorney, recording

What Drives Bridge Loan Cost

Bridge loans are short-term financing (6-24 months) used for acquisition, value-add, or transitional projects. Cost has three components:

  • Interest: Typically 9-12% for bridge loans. Paid monthly during the hold period.
  • Points/origination: 2-3% of loan amount, paid at closing. Higher points = lower rate (and vice versa).
  • Closing costs: $2,500-5,000+ for title, appraisal, attorney, recording. Largely fixed regardless of loan size.

Hold time is the biggest swing factor. A 6-month hold cuts your interest cost in half vs. a 12-month hold. Plan exit strategy carefully before committing.

When Bridge Loan Cost Makes Sense

Bridge loans are expensive relative to long-term mortgages. They make sense when:

  • Speed matters: closing in 5-10 days vs 21-45 days for conventional
  • Property doesn't qualify for long-term yet: value-add, stabilization, or distressed scenarios
  • Cash-equivalent leverage: compete with cash offers without tying up actual cash
  • Bridge to refinance: hold while stabilizing, then refi into DSCR or conventional at lower cost
  • Bridge to sale: hold while marketing for resale (flips, wholesales, 1031 exchanges)

Bridge Loan Cost vs Hard Money

Bridge loans and hard money loans serve similar purposes but at different price points:

Loan TypeTypical RateTypical PointsBest For
Institutional Bridge9-12%2-3Larger deals ($500K+), strong borrowers
Hard Money11-15%3-5Smaller deals, faster close, lower borrower bar
Private Money10-13%1-3Negotiated terms, established lender relationships

For investment property bridge financing, our marketplace places deals across institutional bridge sources for the best combination of speed and price.

Reducing Total Cost

  • Shorten hold time: every month of bridge costs roughly the same as 12 months of conventional. Plan exit before closing.
  • Negotiate points down: 2 points instead of 3 saves 1% of loan amount upfront. Worth asking for on larger deals.
  • Rate vs points trade: if hold is short (≤6 months), lower points + higher rate often costs less than higher points + lower rate.
  • Get multiple quotes: bridge pricing varies meaningfully across capital sources. Marketplace placement (our model) reveals the actual best terms for your scenario.

Frequently Asked Questions

How fast can a bridge loan close?

Bridge loans typically close in 5-10 business days from a complete application. Some lenders close in 3-5 days for clean files with cash reserves. Compare to conventional financing at 21-45 days.

What credit score is required for bridge loans?

Most bridge programs require 660+ credit. Some specialty programs accept 620-640 with compensating factors (larger down, lower LTV, experience). Bridge underwriting weights asset and exit strategy more than credit.

Can I extend a bridge loan?

Most bridge loans have extension options — typically 3-6 month extensions at additional points (0.5-1%). Build extension cost into your plan if exit timing is uncertain.

What's the difference between bridge and fix & flip loans?

Fix and flip loans include rehab funds (drawn as work is completed). Bridge loans are typically purchase-only or refinance-only. Some lenders offer hybrid bridge + rehab structures.

Does LendingStreet underwrite bridge loans directly?

No — LendingStreet places bridge loans across a marketplace of 30+ capital sources. We match your scenario to the source offering the best combination of speed, terms, and execution probability.

Need A Bridge Loan Quote?

Get competing bridge loan quotes from our marketplace of 30+ capital sources. Close in as little as 5-10 days.

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2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.

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