Bridge Loan: Funding and Interest-Only Costs
Compare additional debt or full payoff replacement, with the origination fee paid separately or withheld.
What This Calculator Does
Estimate a short-term bridge loan with unchanged gross principal and cash-paid monthly interest. Choose keeping all entered secured debt or repaying it all from the loan, then paying the origination fee separately or withholding it. Compare gross capacity, modeled funds, own-cash fee, net cash position and bridge principal due at exit.
Who Is This For
Real-estate agents, buyers and owners evaluating a specific Florida bridge quote using one collateral property. It is not approval, a verified appraisal, a complete settlement statement or a calculation of all cash needed to carry current and new properties.
How It Works
Choose both options and enter seven figures: the property value, existing secured debt or its full payoff quote, the lender's LTV limit, the bridge loan amount, the yearly rate, the origination fee percentage and whole months. Enter 0 where allowed, but never hide real existing debt by entering 0. Tick the confirmation and compare the loan funds with the fee you pay yourself and your net cash position. Check any funding gap or over-limit warning, and plan to repay the full loan amount. Get fresh lender and payoff quotes when something changes.
Frequently Asked Questions
How do keeping and replacing prior debt differ?
Keeping debt adds the gross bridge to all lender-counted secured debt remaining on the same collateral. Gross capacity is collateral value times entered LTV, rounded down to cents, minus that prior amount, floored at 0. Full replacement pays all entered prior obligations from the bridge; capacity is the entered gross ceiling without subtracting payoff, while loan funds do subtract payoff. No prior liens are retained in replacement mode. Mixed repaid/retained obligations and a future balance schedule are outside the model.
What changes when the origination fee is paid separately?
A separately paid fee leaves modeled loan funds after payoff unchanged and shows the fee due from your own cash. Withholding deducts the same fee from those loan funds and shows no separate own-cash fee. Net cash position is after-payoff funds minus origination in either mode: it is the combined cash effect, not necessarily the bank wire. Gross principal and its interest are unchanged. No fee is added above gross principal; capitalized charges must already be in the lender's gross quote and not repeated.
What is included in total cost, and is principal an expense?
Total cost is only the entered new origination fee plus modeled monthly cash-paid interest over the holding period. It excludes old-loan payments/costs, another property's carry, title, recording, loan taxes, extensions, penalties and other closing charges. A full old payoff may include charges affecting funds, but those are not counted as new bridge costs. The whole bridge principal is due at exit and shown separately, not added to cost as an expense. This is not the total cash budget for owning two properties.
Does within the entered limit mean approved or enough money?
No. It only compares requested gross principal with capacity from the entered collateral, LTV and debt treatment. Replacement can be within capacity yet leave too little to repay prior debt or fund another purchase. Negative modeled loan funds or net cash position mean additional cash is needed; they are shortfalls, not negative bank wires. An over-capacity amount keeps its own hypothetical cost projection without silent reduction or approval. Lender underwriting and actual cash needs require separate verification.
How are whole months, fees and monthly interest calculated?
The model takes 1–24 whole months; 2.0 means 2, not 20. That range is a form limit, not a standard bridge term or a Fannie Mae rule. Interest is the yearly rate ÷ 12 on the full loan amount; monthly interest and the one-time fee are each rounded to the cent. Total interest is the rounded monthly interest × months. Rates 0%–25%, fees 0%–5% and LTV 0%–100% allow four decimals; they are form limits, not market quotes. Daily interest, APR, deferred or compounding interest and principal payments are not modeled.
What needs checking outside this calculator?
Check the appraisal, all existing secured debts or their full payoff, the lender's LTV, the loan amount, how the fee is paid and the exit date. Get new quotes when the amount or timing changes; the calculator doesn't reprice them. The CFPB explains mortgage costs and Fannie Mae gives bridge and swing loan guidance, but neither confirms your offer. The lender may count your current, new and bridge payments; this tool doesn't calculate DTI or approval. Each amount can be up to $2 billion, and results above $10 billion can't be shown; that's a calculator limit. Other costs, having enough cash and repaying the full loan at exit remain separate.