A bridge financing is a short-term mortgage always purchase property. A link loan is usually refinanced otherwise paid down if the house is sold, prior to the avoid of mortgage name. Its called a bridge loan as it serves as a good financial bridge since that time you purchase property up until whenever either you refinance it that have a long-term mortgage otherwise shell out they off.

Basic, the newest finance are generally one to-to-2 yrs long, so they is a brief resource choice as compared to a beneficial 15 or 29 season financial.