What is a bridge loan?

A bridge loan is a type of short-term financing used in mortgage law in North Carolina. This loan is designed to bridge the gap between the purchase of a new property and the sale of an existing one. This type of loan is typically taken out when a person wants to purchase a new home before their current home has sold. Bridge loans provide a borrower with the funds needed to purchase a new home, while allowing them to keep their current home on the market in search of a buyer. This allows a buyer to purchase a new home before the current home is sold, without having to worry about paying two mortgages at the same time. In North Carolina, bridge loans are usually short-term, ranging from three to 12 months. The loan amount is usually determined by the value of the existing property and the expected cost of the new home. Since this type of loan is taken out for a relatively short period of time, interest rates tend to be higher than those for a regular mortgage. A bridge loan can be a useful tool for someone who wants to purchase a new home without having to wait for their current home to sell. However, since bridge loans often come with higher interest rates, borrowers should be aware of the risks associated with them before taking out such a loan.

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What is a bridge loan?

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