The fees on a US bridge loan
A bridge loan quote typically has origination points, where one point is 1% of the loan, and sometimes a broker fee. At closing there are also an appraisal, title and closing costs, and lender processing and underwriting fees. Some loans carry a prepayment or exit fee. These are separate from interest, so a low rate can still come with high fees.
Points and the broker fee are a percentage of the gross loan. Appraisal, title, closing and processing fees are fixed dollar amounts paid at closing.
Taken from the advance or paid separately
Some lenders take the points out of the loan proceeds, so you receive less than the gross loan. Others expect you to pay them in cash at closing. The total fees are the same either way, but the money you receive and the cash you bring to closing differ. Choose the option that matches your loan estimate.
Worked example: a $350,000 bridge loan
A $350,000 gross loan has 2 points, which is $7,000, and a 0.5% broker fee of $1,750. Together that is $8,750 of percentage fees, paid separately, so the advance is the full $350,000.
Appraisal ($750), title and closing costs ($2,200) and processing and underwriting fees ($1,500) add $4,450. With no prepayment fee, total fees are $13,200.00, which is 3.77% of the loan, or $2,200.00 for each of the six months. You pay $13,200.00 in cash at closing and have $336,800.00 to use.
What this page leaves out
This page adds up fees only. It does not include interest, which is often the larger cost of a bridge loan, or the purchase costs of the new home. Use the swing loan calculator for the total cost of borrowing.
To add interest to these fees, use the US swing loan calculator .
To compare two quotes side by side, use the US bridge loan comparison calculator .
Use the right country page
This page stays in US dollars and uses US terms: points, appraisal, title and closing costs. The country choices above the inputs open separate local pages. Choosing United Kingdom opens the UK bridging loan fee calculator, which uses an arrangement fee and valuation and legal fees. The inputs reset and amounts are not converted.
Inputs for the bridge loan fee calculator
Gross loan amount
The loan before any fee is taken from the proceeds. Percentage fees are charged on this.
Time you expect to keep the loan
Whole months, used to spread the fees over the term.
Origination fee (points)
A percentage of the gross loan. One point is 1%.
Broker fee
A percentage of the gross loan. Enter zero if there is no broker fee.
Appraisal fee
Paid to the appraiser, usually at the start.
Title and closing costs
Title insurance, escrow and attorney costs at closing.
Processing and underwriting fees
Lender processing, underwriting or document fees.
Prepayment or exit fee
A percentage of the gross loan, paid when you repay. Enter zero if none.
Points and broker fee are
Taken from the advance, or paid separately in cash.
CALCULATOR QUESTIONS
US bridge loan fee calculator questions
How much are bridge loan fees?
It varies by lender and loan. Add up the points, appraisal, title and closing, and processing fees and any prepayment fee from your quote; the calculator does it for you.
What is a point on a bridge loan?
One point is 1% of the loan amount. Two points on a $350,000 loan is $7,000.
Are points paid from the loan proceeds?
Sometimes. Many lenders take them from the proceeds, so you receive less; others ask you to pay them in cash at closing.
Do these fees include interest?
No. Interest is a separate cost. Use the swing loan calculator to see interest and fees together.
What happens when I change country?
The United Kingdom option opens the separate UK bridging loan fee page, in pounds, with an arrangement fee and valuation and legal fees. Your inputs are reset rather than converted.