A $130K Bridge Loan Costs $6,717 Over 5 Months — Often Cheaper Than a 2% Flat Fee
We ran a $130,000 bridge loan at a 10% rate, 1 point, over an expected 5-month term through the calculator — $1,300 in origination fees plus $5,417 in interest-only payments, for a $6,717 total cost. A flat-fee fintech “buy before you sell” program charging 2% of a $600,000 new home would instead cost $12,000 — nearly double in this scenario.
Two cost curves that respond to time completely differently
| Term | Bridge loan total cost (10%, 1 point) | Fintech program cost (2% of $600K) |
|---|---|---|
| 3 months | $4,550 | $12,000 |
| 5 months | $6,717 | $12,000 |
| 8 months | $9,967 | $12,000 |
| 12 months | $14,300 | $12,000 |
The fintech program’s cost is a flat, unchanging number regardless of how long the sale takes. The bridge loan’s cost climbs steadily every month it’s outstanding. Somewhere between 8 and 12 months in this example, the lines cross — before that point, the bridge loan is cheaper; after it, the flat fee wins. Knowing roughly where that crossover sits for your own loan amount and rate is the whole decision.
The real risk is misjudging the timeline
A bridge loan’s cost estimate assumes the old home actually sells within the expected term. A slower-than-expected market extends the loan’s real cost month by month in a way a flat-fee program’s cost never does — which makes the fintech alternative attractive specifically when the sale timeline is genuinely uncertain, even if the bridge loan looks cheaper on paper for the expected case.
Where this framework doesn’t apply
- You already have a HELOC with enough available credit. A HELOC often carries lower ongoing costs than a fresh bridge loan — see what a HELOC actually costs against a locked-in mortgage rate for that comparison.
- You don’t qualify for a bridge loan. Lenders typically require strong equity and the income to carry two mortgage payments simultaneously — a fintech program may be the only realistic path if you don’t meet that bar.
- Your old home is likely to sell very quickly. A fast sale favors the bridge loan even more heavily, since less time means less accrued interest.
- The sale timeline is genuinely uncertain. The fintech program’s flat, predictable cost is worth more than its headline price might suggest when the alternative risk is an open-ended, growing bridge loan bill.
What to actually do
- Get actual bridge loan quotes and actual fintech program quotes — typical ranges are a starting point, not your specific offer.
- Be honest about your old home’s likely time-to-sell, using current local market data rather than an optimistic guess.
- Confirm you actually qualify for a bridge loan (equity and income requirements) before assuming it’s available.
- Check whether you already have a HELOC with sufficient available credit — often the cheapest bridge option if it’s already in place.
- Build a buffer into your term estimate, since a slower-than-expected sale directly extends the bridge loan’s real cost beyond the base-case estimate.
Open the Bridge Loan Cost Calculator → and run your own loan amount, rate, and expected timeline.