Last week I was approved for a bridge loan to purchase a residential investment property. It is vacant but in pretty good condition. I have good credit but I know that bridge loans are equity driven and I should expect higher fees. My rate is 10,5%, 4 origination points, and $950 for processing. I am pretty happy with this. The appraisal is this week and it has been a pretty smooth process.
My question is this... on a Bridge Loan, how much total fees is normal? What is the normal interest rate?
Again, I am just fine with 4 points and 10.5% for an easy 3 week loan. I just want to know what everyone else is charging?
Thanks for reading.
Those terms are about right for a 12 to 24 month bridge loan. Sounds like you found a good lender. I hope you close on that property very soon.
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Too high, should be more like 7% interest rate 2.50% points