20 minutes | Feb 19, 2020

A Bridge (Loan) To Your Next Home

In today’s episode of Escrow Out Loud, our San Francisco Real Estate podcast, we are talking about bridge loans with our special guest from Opes Advisers, sales manager and senior loan advisor Tracy Andreini.[00:40] A lot of people think about selling their property at this time of year. The nice thing about bridge loans is that they make it possible for people to buy their next home allowing them to move out and stage their house for sale.[01:04] We have been working with Opes for over a decade now. Tracy tells us a little bit about Opes Advisers and her background. She also explains what a bridge loan is and what are some of its major benefits.[06:24] One feature of bridge loans is that they are short term loans, typically having a term of only six months.[07:21] Another feature is that with a bridge loan there are no monthly payments. The only out of pocket costs are the 3% initial deposit and closing costs. Tracy explains how this works.[09:12] The interest rates on a bridge loan are time plus 2.5. Currently this would be 7.25%.[10:18] What is the difference between a bridge loan and a regular equity line? Tracy goes over some issues with a HELOC that you don’t get with a bridge loan.[13:32] If anyone has more questions or wishes to apply for a bridge loan Tracy recommends getting in touch with her on her cell-phone.[14:00] Tracy talks about appraisals required for a bridge loan. What is different to the normal process that’s good to be aware of?[15:38] As we learned earlier a bridge loan is a six month product and this is sufficient for a large majority of cases. But what happens when the six month period goes by and the house has still not sold? Are there extensions given?[17:18] Most people are not aware of this product but it takes a lot of anxiety and pressure away.[18:38] Matt wraps up with a quick summary of points covered today!Thank you for listening. If you enjoyed this episode leave us a review on your favorite platform, tell your friends and don’t forget to join us again next week! See acast.com/privacy for privacy and opt-out information.
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