Combined loan to value on a bridge loan
Many US bridge loans are secured on a home you are selling, which still has a mortgage. Lenders add the existing mortgage to the bridge and compare the total with the home's value: this combined loan to value (CLTV) must stay within their maximum, often around 80%. The most a lender can advance is the value times its maximum LTV, minus the existing mortgage payoff.
Investor and commercial bridge loans work the same way when another lien stays in place. Enter zero under Existing mortgage payoff when the bridge is the only loan or when it pays the old mortgage off.
To start with a lender limit and solve for the cash available after quoted costs, use the US bridge borrowing capacity calculator .
Points, reserves and financed costs
A lender's maximum normally applies to the loan amount. If origination points or an interest reserve are financed into the loan rather than paid at closing, they increase the loan and the LTV. Choose Deducted from the loan to finance the points, and Retained to finance the interest, then select Gross debt at the end if your lender measures LTV on the full balance.
Under the usual monthly-payment structure, interest is paid as you go and does not change the LTV. With accrued interest paid at payoff, the balance grows over the term, which the gross figure shows.
Worked example: bridging to a new home
Your home is worth $500,000 and you still owe $275,000. A lender allows a maximum combined LTV of 80% on the loan amount, so the most it can lend is $500,000 × 80% − $275,000 = $125,000. Borrowing that $125,000 puts the combined LTV at exactly 80%.
At 9.5% a year for six months with interest paid monthly, the interest is $125,000 × 9.5% × 6 ÷ 12 = $5,937.50, and a 1% origination fee paid at closing costs $1,250. If that fee were financed into the loan instead, the loan would be $126,250 and the gross combined LTV 80.25%, just over the limit.
What this calculator does not decide
Loan to value is one of several tests. Lenders also look at your income and debts, credit, the home you are buying, how quickly the old home will sell, and their own appraisal. Some bridge loans require payments; others accrue interest until the sale. This estimate is not a loan approval.
To see the full cost of the bridge, including fees and the payoff, use the US swing loan calculator .
For an investor loan sized on purchase price, rehab and after-repair value, use the US fix and flip loan calculator .
Use the right country page
This page stays in US dollars and uses US terms: combined LTV with an existing mortgage, annual rates and origination points. The country choices above the inputs open separate local pages. Choosing United Kingdom opens the UK bridging loan LTV calculator, which focuses on net and gross LTV with retained interest and monthly rates. The inputs reset and amounts are not converted.
Inputs for the bridge loan LTV calculator
Property value
The appraised or estimated value of the property securing the bridge.
Existing mortgage payoff
The mortgage balance that stays on the property. Enter zero if none.
Cash you need
The bridge proceeds you need. Financed points or retained interest are added on top.
Quoted interest rate
The note rate on your quote, not the APR. US bridge loans are usually quoted per year.
Rate quoted per
Year (nominal) divides the annual rate by 12. Choose Month for a monthly rate.
Term
The number of months you expect to keep the bridge, often until your home sells.
How interest is paid
Monthly payments do not change LTV. Retained or accrued interest increases the balance.
Origination fee (points)
One point is 1% of the loan, paid at closing or financed into it.
Fee based on
Whether the points are a percentage of the proceeds or of the gross loan.
Origination fee payment
Paid separately at closing, or deducted from the loan, which adds it to the balance.
Lender maximum LTV
The highest combined loan to value the lender allows, including the existing mortgage.
Limit measured on
Net cash advanced is the usual US loan-amount basis; gross debt includes financed costs and accrued interest.
CALCULATOR QUESTIONS
US bridge loan LTV calculator questions
How do I calculate the LTV of a bridge loan?
Add the bridge loan to any mortgage that stays on the property, divide by the property value and multiply by 100. That combined figure is what the lender compares with its maximum.
How much can I borrow with a bridge loan?
Roughly the property value times the lender's maximum LTV, minus your existing mortgage payoff. Many lenders cap combined LTV at around 80%.
Do points count toward LTV?
Only if they are financed into the loan. Points paid at closing do not increase the loan amount.
Does interest count toward LTV?
Monthly interest payments do not. A financed interest reserve or interest that accrues until payoff increases the balance and the gross LTV.
What happens when I change country?
The United Kingdom option opens the separate UK bridging loan LTV page, in pounds, with its own defaults and terms. Your inputs are reset rather than converted.