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
Select both modes and enter seven numeric assumptions: collateral value, prior secured debt or full quoted payoff, lender LTV ceiling, gross bridge principal, nominal annual rate, origination percentage and whole months. Enter explicit 0 where permitted, never hide real prior debt by entering 0. Confirm the model and compare loan funds with the separate own-cash fee and net cash position. Check any funding gap or over-capacity warning, and plan repayment of the full principal. Obtain fresh lender/payoff quotes for 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 constant-principal model accepts 1–24 whole months; 2.0 means 2, not 20. That range is a computational input bound, not a standard bridge term or Fannie Mae rule. Nominal rate divided by 12 applies to gross principal; monthly interest and the one-time fee each round to cents, half-cent upward. Total interest is rounded monthly interest times months. Rates 0%–25%, fees 0%–5% and LTV 0%–100% allow four decimals and are input ranges, not market quotes. No daily accrual, APR, deferred/compounded interest or principal amortization is modeled.
What needs checking outside this calculator?
Verify the appraisal, all prior secured obligations/full payoff, lender LTV, gross principal, fee payment and exit date. Recheck quotes when amount or timing changes; the calculator does not reprice them. CFPB explains mortgage costs and Fannie Mae provides bridge/swing guidance, but neither verifies your individual offer. Current, new and bridge obligations may matter to the lender; this tool does not calculate DTI or approval. Each money input is capped at US$2 billion; the US$10 billion absolute output bound is computational only. Other costs, adequate funds and full exit repayment remain separate.