Bridge Loan Vs Cash Offer

No Payment Bridge Loan Vs Sell My House Fast Calculator

How to Use This Bridge Loan Vs Cash Offer Calculator

  1. Step 1

    Add Your New Home Details

    Enter the new home’s sales price, first down payment, mortgage rate, term, and closing costs.

  2. Step 2

    Add Your Current Home Details

    Enter the expected sale price, mortgage payoff, monthly home costs, debts, and repairs.

  3. Step 3

    Add The Cash-Offer Fees

    Enter the cash-offer company’s fee so you can compare what each option costs.

  4. Step 4

    Compare What You Keep

    See the bridge cost, cash-offer fee, estimated timelines, and how much equity you keep.

  5. Step 5

    See How Recasting Lowers Your Payment

    Apply the net proceeds from your current home’s sale to the new mortgage and see the new payment.

Step 1

Add The Details For Your Next Home Purchase

Enter the price, down payment, and closing costs for your next home.

Our Bridge Loan: No Payments For 12 Months

Fill In The Yellow Fields To Estimate Your Bridge Loan:1. Your Next Home: Price And Down Payment
2. Your Current Home: Value, Debts To Pay Off, And Repairs
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That is $130,000 down.

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Estimated at 3% of the price ($19,500).

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Illustrative rate. Change this to your expected rate. This is not a rate quote.

Original Mortgage Term

Illustrative term. 30 years is preselected. Change it to your expected term.

Step 2

Add Your Current Home Details

Enter the expected sale price, mortgage payoff, monthly home costs, debts, and repairs.

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$
$

Paid each month until your home sells.

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Paid each month until your home sells.

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$

Leave at $0 if you have no HOA.

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What it takes to get your home ready to sell.

Bridge Loan Amount

$177,000

No payments and nothing out of pocket for the first 12 months.

How Long Until Your Home Sells?

The sooner it sells, the less you pay.

Your Total Cost If It Sells In 6 Months

$15,503

  • Paid from your sale proceeds, not up front
  • Includes $325 a month for taxes, insurance, and HOA while your home is for sale
  • Closing usually takes 15 to 20 days, about the same as a cash offer company
Step 3

Add Your Sell My House Fast For Cash Fees

Enter the fees the sell my house fast for cash company would charge.

The Typical Cash Offer: 6% Off The Top

Most of these fields will auto-populate from the answers you entered in Steps 1 & 2 on the left side.Most Sell-My-House-Fast-For-Cash Companies charge a 5% to 7% fee. A higher offer can also mean a higher fee, so focus on the net amount you keep, not just the offer price.
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Most companies charge 5% to 7%.

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Estimated at 3% of the sale price ($15,000).

Projected Net Proceeds

What comes out of your sale before you walk away with cash.

Sale Price Of Your Current Home$500,000
Mortgage Payoff-$175,000
Closing Costs On Your Current Home-$15,000
Cash Offer Fee At 6.0%-$30,000
Repairs Before Selling-$7,500
Debts To Pay Off-$20,000
Down Payment On Your Next Home-$130,000
Closing Costs On Your Next Home-$19,500
Projected Net Proceeds$103,000

Cash Offer Fee At 6%

$30,000

  • Taken right off the top of your sale price
  • The same whether they resell in 1 month or 6
  • You still pay your closing costs and mortgage payoff

What Does The 6% Fee Actually Buy?

  • Speed and certainty, paid out of your equity at closing.
  • Offers usually come in below full market value.
  • Repair credits can lower the offer again after the inspection.
  • You still owe your mortgage payoff and closing costs.
  • The fee never drops, no matter how fast the sale closes.
Step 4

Compare The Results

See our bridge loan cost versus Sell My House Fast For Cash offer, and how much more money you keep based on when your home sells.

Side By Side: Bridge Loan Vs Sell My House Fast For Cash Offer

Based on a $500,000 sale and paying the bridge loan off in 6 months.

What You Keep With A Bridge Loan

$14,497

That Is 48% Less Than The 6.0% Cash Offer Fee

A cash offer company charges $30,000 plus closing costs. Your bridge loan costs $15,503 at 6 months, and you still list and sell on the open market.

Bridge Loan Cost (6 Months)

$15,503

Origination, underwriting, title, and carrying costs

Cash Offer Cost (6.0% Fee)

$30,000

Fee taken off the top of your sale

You Keep

$14,497

48% less than the cash offer fee

Payoff TimelineBridge Loan CostCash Offer FeeYou SavePercent Saved
3 Months$10,108$30,000$19,89266%
6 Months$15,503$30,000$14,49748%
9 Months$20,899$30,000$9,10130%
12 Months$26,294$30,000$3,70612%

How Much You Save With A Bridge Loan

Cash Offer Fee (6.0%)$30,000
Bridge Loan Cost (6 Months)$15,503
You Save$14,497

How Much More A Cash Offer Costs

Cash Offer Fee (6.0%)$30,000
Bridge Loan Cost (6 Months)$15,503
Extra You Would Pay$14,497

These figures are estimates, not a quote. Bridge loan costs include 1% origination, title fees estimated at 1.1%, and a $995 underwriting fee. Closing costs on your next home are estimated at 3%. Actual costs vary by location and by the terms of your contract.

See How The Costs And Savings Are Calculated

Open this section for a detailed breakdown of the bridge loan costs, cash-offer fees, and where the savings come from.

How It Works And Where The Savings Come From

See The Full Bridge Loan Overview
Every number above, explained, including what it costs and when you pay it.

Bridge Loan Costs Are Deducted From Your Loan Proceeds

You do not pay these costs when you apply. They are deducted from the bridge loan proceeds when your loan closes.

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Estimated at 1.1% of your bridge loan amount, subject to change based on your state and county.

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9.99% builds up on your loan amount. Nothing is due until your home sells.

Origination (1.00%)$1,770
Underwriting$995
Title Fees (1.10%)$1,947
Total Loan Costs$4,712

Origination is 1% of your bridge loan amount. Title fees are estimated at 1.1%, subject to change based on your state and county.

Estimated Cost Based On When Your Home Sells

Payoff Timeline
Bridge Closing Cost
One time, deducted from net proceeds
Carrying Cost
Paid when your home sells
Total CostSavings Vs Cash Offer
3 Months$4,712$5,396$10,108$19,892 or 66% Savings
6 Months$4,712$10,791$15,503$14,497 or 48% Savings
9 Months$4,712$16,187$20,899$9,101 or 30% Savings
12 Months$4,712$21,582$26,294$3,706 or 12% Savings

are your monthly taxes, insurance, HOA, and bridge loan interest until your home sells.

Why A Bridge Loan Wins

  • Nothing out of pocket. Fees come out of your loan at closing.
  • No monthly payment for a full 12 months.
  • You list and sell on the open market instead of taking a discounted offer.
  • Debts you choose get paid off at closing, and your repair money, down payment, and closing costs are advanced.
  • You buy your next home first and move on your own schedule.
  • Your cost drops the sooner your home sells.

How The Cash Offer Works

  • They keep 6.0% of the sale price, the same whether they resell in one month or six.
  • That is $30,000 out of your equity at closing.
  • You still pay your closing costs and mortgage payoff.
  • Repair credits and price changes can lower the offer further.
Step 5

See How Recasting Lowers Your Payment

Choose how much cash from your sale to keep and how much to put toward the mortgage on your new home.

See How You Can Reduce Your New Mortgage Payment After Your Old Home Sells

After your current home sells, we pay off its mortgage, selling costs, and the bridge loan. You choose how much of the cash left to keep and how much to put toward the mortgage on your new home.

What Does Recasting Mean?

You put cash toward your mortgage, then ask us to recalculate your payment using the lower balance. Your interest rate and remaining payoff schedule stay the same. Your required monthly principal-and-interest payment goes down.

Estimated Cash After Your Home Sells$117,497

This is the cash estimated to remain after the mortgage on your current home, selling costs, and all bridge-related amounts are paid.

See How We Calculated This
Expected Sales Price Of Your Current Home$500,000
Mortgage Payoff On Your Current Home-$175,000
Estimated Selling Costs-$15,000
Bridge Loan Principal-$177,000
Bridge Closing Costs-$4,712
Estimated Bridge Carrying Costs-$10,791
Estimated Cash After Your Home Sells$117,497

Repairs, debts, the down payment on your new home, and its closing costs are already included in the bridge loan principal. We do not subtract them twice.

See My New Payment After Recasting

We’ll carry these numbers, your mortgage rate, and your loan term to the next page. You only choose how much cash to put toward the mortgage.

Common Questions

The questions homeowners ask most before choosing between a bridge loan and a cash offer.

How much do cash home buying companies charge?

Sell my home for cash companies typically charge a service fee of 5 to 7 percent of the sales price, and that comes out of your proceeds on top of normal seller closing costs. This calculator defaults to 6 percent so you can see the dollar cost of that convenience against a bridge loan.

How does a bridge loan with no payments for 12 months work?

You pull equity out of your current home to pay off debt, complete repairs, cover closing costs, and make the down payment on your new home. There is no monthly payment for the first 12 months. Interest accrues at 9.99 percent and is paid off when your current home sells.

What does the bridge loan cost?

A 1 percent origination charge on the total loan amount, a 995 dollar underwriting fee, title fees estimated at 1.1 percent of the loan amount, and carrying cost of 9.99 percent annually on the loan amount for the months the loan is outstanding. The faster your home sells, the less it costs.

Is a bridge loan cheaper than selling to a cash offer company?

It can be. The answer depends on your home value, the cash-offer fee, the bridge loan amount, and how soon your current home sells. This calculator compares both options using the numbers you enter so you can see the estimated cost and projected difference for your situation.

Want These Numbers Reviewed For Your Situation?

Send your scenario to Michael Thayer and his team, or book a call directly below.

Prefer to talk it through? Pick a time that works for you.

Booking unlocks once you send your scenario, so Michael has your numbers before the call.

Your information is used only to respond to your mortgage inquiry and is not sold. This is not a loan application and does not constitute any type of formal loan approval.

For educational and illustration purposes only. This is not a loan approval, a commitment to lend, or an offer to purchase. Bridge loan pricing, fees, carrying costs, and payoff amounts vary by property, credit profile, title work, and the final terms of your approved loan. Cash offer amounts and fees charged by Sell My Home For Cash Companies vary by company and market. Confirm all figures with Mike and his team and your preferred title company.