What are the Costs Associated with a Bridge Loan?
Typically, there are three main costs associated with bridge financing
- A typical interest rate on bridge loans today will fall in the range of prime + 2.5% to prime + 5.0%.
- For example, on a bridge loan of $250,000 at a prime rate of 2.70% and a premium of 4.0%, your bridge loan cost you $45.89 a day.
- Lender fee
- This is not a fee that we charge, but rather a fee the lender collects. This cost can range from $300 - $600.
- Legal fee
- When legally binding your bridge loan at your legal team’s office, a fee of around $300 is typically charged for contractually arranging and registering your bridge loan on the title. This step is similar to securing your mortgage and ensures the lenders security, knowing that they will soon be repaid.