How much you can borrow, the monthly cost and your net from the sale
Updated 2026-10-02
A bridge loan borrows against the home you are selling so you can buy the next one first. The most you can borrow is your current home's value times the lender's maximum combined loan-to-value, minus what you owe. Enter your home, mortgage, the lender's terms and how long you expect the sale to take to see the loan size, the monthly cost of carrying both homes and the cash left after you sell. Compare a HELOC · estimate closing costs on the new home.
Your homes and the bridge loan
Your bridge loan
Bridge loan amount
$120,000
max $150,000 at 80% combined LTV
Monthly payments while you own both
$5,900.00
incl. $900.00 bridge interest
Bridge loan cost
$7,800
$2,400 fee + $5,400 interest
Cash left after the sale
$97,600
after selling costs, mortgage and bridge payoff
Estimates for planning, not a loan offer or financial advice. Every rate and cost here is a number you enter or an example you can change; confirm figures with your lender.
How the bridge loan is calculated
Max bridge loan = home value × max combined LTV − current mortgage Monthly interest = bridge loan × annual rate ÷ 12 Cash after sale = price − selling costs − mortgage − bridge loan − fee − deferred interest
The bridge loan is the smaller of the amount you want and the maximum. With interest paid monthly, the total interest is the monthly interest times the months until the sale. With deferred interest, nothing is paid monthly and the interest compounds each month until the sale repays it: bridge loan × ((1 + r)months − 1). The monthly carrying cost adds your current payment, the new home's payment and any monthly bridge interest. The fee is treated as paid from the sale proceeds.
Worked example
Your home is worth $500,000 and you owe $250,000. At an 80% combined loan-to-value limit you can borrow up to $150,000; you take $120,000, bringing the combined LTV to 74%. At 9% interest-only that is $900.00 a month, so while you own both homes you pay $5,900.00 a month. Over a 6-month sale the bridge costs $7,800. Selling at $500,000 with 6% selling costs leaves $97,600 after repaying the mortgage, the bridge loan and the fee.
Bridge loans and qualifying for the new mortgage
Fannie Mae's Selling Guide B3-6-05, Monthly Debt Obligations (published August 5, 2026) says a bridge or swing loan creates a contingent liability that must be included in the borrower's debt-to-income ratio. The requirement is waived when the lender documents a fully executed sales contract for the current home and confirmation that any financing contingencies have been cleared. Until then, your current payment, the bridge loan and the new mortgage all count. Check the combined ratio with the mortgage DTI calculator.
What to compare before you choose
A slower sale. Raise the months field to see what 9 or 12 months of carrying both homes would cost.
A HELOC on the current home. A HELOC may cost less if you can open it before listing; some lenders will not open one on a home that is for sale.
Selling first. Selling before buying avoids the bridge cost but may mean a temporary move.
Then size the new home's payment in the mortgage calculator. All rates, fees and limits here are inputs from your lender's quote; this is an estimate for planning, and your loan documents are final.
Selling and moving at the same time
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Lenders usually cap the bridge loan plus your current mortgage at a percentage of your current home's value. With a $500,000 home, a $250,000 mortgage and an 80% limit, the most you could borrow is $150,000. The limit is set by each lender, so enter the one you are quoted.
How is bridge loan interest calculated?
Many bridge loans charge interest only. $120,000 at 9% is $900.00 a month, or $5,400 over 6 months. If interest is deferred until the sale instead, it compounds monthly to about $5,502 and is paid from the sale proceeds.
Does a bridge loan count in my debt-to-income ratio?
Fannie Mae's Selling Guide treats a bridge (swing) loan as a contingent liability that must be included in the DTI ratio, unless the lender documents a fully executed sales contract for the current home and confirms that financing contingencies have been cleared.
What does a bridge loan cost in total?
Origination fees plus interest. In the example, a 2% fee of $2,400 and $5,400 of interest over 6 months make $7,800, before any closing costs the lender charges.
What happens if my home takes longer to sell?
You keep paying both mortgages and the bridge interest, and the bridge loan's term may run out. Test a longer sale time in the months field to see how the cost grows, and check the loan's term and extension terms before signing.
