Bridge Loan Rates & Fees

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Bridge Loan Rates

Bridge loan interest rates are typically higher than traditional 30-year mortgages from conventional lenders such as banks, credit unions and other traditional lenders. Bridge loans are only intended to be very short-term which is why the bridge loan rates are higher. Most conventional lenders do not offer short-term bridge loans as they are primarily focused on providing more long-term products such as 15-year and 30-year mortgages. Residential bridge loans are usually written for 11 months while commercial bridge loans are commonly offered for 12-24 months.

Many bridge loan lenders are private money lenders who provide mortgages secured against real estate. Private lenders are able to fund very quickly and have much more flexibility than institutional lenders. The convenience of speed and flexibility as well as the short-term nature of bridge financing results in bridge loan interest rates that are higher than conventional lending.

Short-Term Bridge Loan Rates Today

Short-term bridge loan rates today are typically in the range of 9.5-10.95%. Mortgage bridge loan rates can vary based on various factors including:

• Loan to value ratio
• Loan amount requested
• Financial strength of borrower
• Credit scores of borrower
• Property location and condition
• Borrower’s exit strategy
• Lender’s current funding capabilities

Residential Bridge Loan Rates

While residential bridge loan rates are higher than conventional rates, they are only a short-term tool used to quickly access equity within an existing property. Residential private money bridge loans are commonly written for 11 months. The bridge loan is paid off once the borrower’s existing property is sold and this typically happens within 3-6 months of the bridge loan being funded. The very short-term nature of the bridge loan is one of the main reasons quick bridge funding interest rates are not as low as conventional rates.

While residential bridge loan rates are higher than conventional rates, the benefit to the borrower of being able to obtain quick financing in order to purchase a new property is worth paying the higher bridge loan financing rates. A residential bridge loan refinance from a private money lender can be funded in 2.5 weeks while a conventional cash-out refinance loan from a bank can take up to 2-3 months.

Real estate bridge loan rates will be much lower than interest rates for unsecured personal loans. Using real estate as collateral reduces risk and results in lower interest rates. Bridge loan rates for California real estate are likely to be lower than elsewhere in the country as there are more private lenders in California which increases competition and reduce interest rates.

Bridge Loan Rates 2026

Bridge loan rates in 2026 have remained similar to interest rates seen in late 2022. While the conventional mortgage rates have continued to increase throughout 2022, current bridge loan rates from private lenders have not increased in the same proportion. Current bridge loan interest rates are expected to remain constant throughout 2026.

Bridge Loan Fees

Bridge loan fees are charged in additional to the bridge loan rate. Bridge loan fees are typically in the form of “points”. 1 point is equal to 1 percent of the loan amount. Points for bridge loans are commonly in the range of 1.5-2.5. Some bridge loan lenders may also add junk fees to the loan in additional to the points. They are often called underwriting, processing or document fees. Other fees associated with a bridge loan would include standard real estate 3rd party fees such as escrow, title insurance, recording fees and notary fees.

Frequently Asked Questions

What is a Bridge Loan?

A bridge loan is short-term financing tool used to help a borrower pull equity from an existing property to help purchase a new property. Once the new property is purchased, the previous property is sold which automatically pays off the bridge loan.

What determines bridge loan rates in California?

Bridge loan rates are set by a combination of factors such as the loan-to-value ratio (LTV) of the property, the borrower’s strength and credit profile, the property type, and the loan term. Short-term private money loans have a higher interest rate range when compared to long-term traditional financing. As a direct lender, North Coast Financial evaluates each deal individually rather than applying rigid formula pricing. Deals with strong equity positions and clear exit strategies typically qualify for better rates.

How quickly can I lock in a rate?

In most cases, we can give you a tight interest rate range the same day you contact us. Because we are a direct lender and have been funding California bridge loans since 1981, we can provide quick quotes and be ready to move forward with the bridge loan in a matter of days.

What is the minimum loan size for a bridge loan?

North Coast Financial generally funds bridge loans starting at $30,000. We can generally lend up to $3-4 million for a single family residence but there is no specific maximum. Larger loans are evaluated on a case-by-case basis depending on property type and equity position. If you are unsure whether your deal qualifies, call us and we will give you a straight answer.

How long is a typical bridge loan term?

Residential bridge loans from North Coast Financial are short-term loans with terms up to 11 months. Investment/business purpose bridge loans may have longer terms of 12-24 months depending on the project. Bridge loans are designed to fill a financing gap until a property sells or longer-term financing is arranged, so the term is structured around your specific exit strategy.

How do bridge loan rates compare to traditional bank loans?

Bridge loan rates are higher than conventional bank rates because they are short-term, primarily asset-based loans funded without the lengthy underwriting process banks require. The trade-off is speed and flexibility. A bank may take 45 to 60 days and still decline the loan. North Coast Financial can often fund in as few as 5 to 7 days for investments while consumer purpose bridge loans have funding timeline of 2-2.5 weeks due to federal regulations. For investors who need to close quickly or who own properties that do not fit conventional lending criteria, the rate difference is usually justified by the cost of a missed deal.

The information provided herein is for educational purposes only. North Coast Financial is not providing any legal, tax or financial advice.