A $130K Bridge Loan Costs $6,717 Over 5 Months — Often Cheaper Than a Flat-Fee Alternative

Two structurally different ways to fund the gap

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. The comparison flips with a longer bridge term: interest keeps accruing on the loan every month it’s outstanding, while the fintech program’s flat fee doesn’t grow at all with time.

How the math works

originationFee = bridgeLoanAmount × points%. totalInterest = bridgeLoanAmount × (annualRate ÷ 12) × termMonths, since bridge loans are interest-only during the term. The fintech program comparison is a flat percentage of the new home’s purchase price, with no time component at all.

What this tool doesn’t model: qualification requirements (bridge loans typically require strong equity and income to qualify for two mortgage payments simultaneously), the risk of the old home taking longer to sell than expected (which directly extends the bridge loan’s real cost beyond this estimate), or closing costs on the bridge loan itself beyond the modeled points.

Math runs locally. Inputs never leave your browser. Source on github.

Where this doesn’t apply

• You have enough cash or a HELOC to bridge the gap without either option. A HELOC often carries lower ongoing costs than a bridge loan if you already have one open with sufficient available credit — see the HELOC vs Cash-Out Refi calculator for that comparison.
• 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 flat-fee program’s cost doesn’t shrink with a faster sale.
• 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 option if you don’t meet that bar.
• The old home might take much longer to sell than expected. A slow market can extend the bridge loan’s real cost well past this estimate — build in a buffer, or lean toward the flat-fee alternative if the sale timeline is genuinely uncertain.

What to actually do

1. Get actual bridge loan quotes and compare against actual fintech program quotes — this tool uses typical ranges, not your specific offer.
2. Be honest about your old home’s likely time-to-sell — a realistic (not optimistic) estimate changes which option wins.
3. Confirm you qualify for a bridge loan (equity and income requirements) before assuming it’s available to you.
4. Check whether you already have a HELOC with enough available credit — often the cheapest bridge option if it’s there.
5. Build a buffer into your term estimate, since a slower-than-expected sale directly extends the bridge loan’s real cost.