X
MENU

Want to Make a Change?

Refinancing

There are several reasons to refinance your mortgage—to lock into a lower interest rate, shorten the terms of your mortgage, switch to a fixed-rate loan from an adjustable-rate, consolidate debt, and more. New Era Bank is happy to help you through all steps of the refinancing process. Reach out to us and we’ll help you get started.

Bridge Loans

A bridge loan is used when someone is already a homeowner and wishes to buy a new house without waiting for their current house to sell. The bridge loan uses the equity already established in the house you own towards the down payment of a new home. For example, say a person owns a $100,000 house that they’ve established $50,000 in equity. They can use the $30,000 of the equity in their current home for a down payment on a $150,000 house. Once the old home sells, the buyer will pay down the loan by an amount necessary to leave a minimum of 20% equity in the new home. Terms of a bridge loan can be 91 days to 1 year. Generally these loans are secured by the property being sold, but it is possible to secure it with the property being purchased and are typically interest only.

In a practical sense, these loans can keep you from missing out on the house you want. It can also help you in a bidding war—if another buyer has a “contingency to sell” and won’t be able to buy the new house until their current house sells, then a seller might find your non-contingent offer more attractive. If a bidding war is unlikely and the seller isn’t in a time crunch to sell, a bridge loan can be avoided altogether by making your contract contingent upon the sale of the old home.

Reach out to a loan officer to find out if a bridge loan is right for you.

Contact Us