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Expert Insights: What Is a Bridge Loan?

Expert Insights: What Is a Bridge Loan?

It is a short-term bank loan of the equity in the home you are selling. You may take out a bridge loan, or interim financing, to help with a knotty situation: closing on the home you are buying before you close on the property you are selling. This loan basically...
Expert Insights: What Is a Wraparound Loan?

Expert Insights: What Is a Wraparound Loan?

Also called an all-inclusive mortgage, it is where a new home loan is placed in a subordinate or secondary position to the original mortgage and the new loan includes the unpaid balance of the first. The wraparound allows the buyer to purchase a home without having to...
Expert Insights: What Is a Balloon Mortgage?

Expert Insights: What Is a Balloon Mortgage?

It is a mortgage in which the entire unpaid principal becomes due and payable on a given date, five, ten, or any number of years in the future. The borrower must pay up, refinance, or lose the property. Interest rates on balloon mortgages are lower than for fixed-rate...
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