What a second lien bridge loan is
A second lien bridge loan adds short-term debt behind a first mortgage that stays in place, instead of refinancing it. Homeowners and investors use it to fund a down payment, a purchase or improvements before a sale or a permanent loan. Because the second lien is repaid only after the first, it carries more risk and usually a higher rate.
US bridge loans are commonly priced at around 8% to 14% a year, often several points above permanent financing, with origination fees of about 1% to 3% of the loan.
Combined loan to value
Lenders add the first mortgage and the second lien together and divide by the property value: the combined loan to value, or CLTV. Many second-mortgage lenders cap CLTV at around 80% to 85% on a home, and lower, around 75%, on investment property.
The most you can borrow is the property value times the lender's maximum CLTV, minus the first mortgage balance. If points or interest are financed into the loan, select Gross debt at the end so they count toward the limit.
Worked example: $150,000 behind a $450,000 mortgage
Your property is worth $800,000 and you owe $450,000 on the first mortgage. A lender allows a maximum CLTV of 80%, so the most it can lend behind your mortgage is $800,000 × 80% − $450,000 = $190,000.
Borrowing $150,000 brings the CLTV to 75%. At 11% a year for 12 months with interest paid monthly, interest totals $16,500, and 2 origination points paid at closing cost $3,000. At the end, $200,000 of equity remains after both loans.
What this calculator does not decide
This estimate does not check your credit, income, the first lender's terms or whether a second lien is allowed. Some first mortgages restrict additional liens, and state rules on second mortgages vary. Confirm terms with the lender and read the loan documents before you commit.
If the bridge pays off your mortgage instead of sitting behind it, use the US bridge loan LTV calculator .
To see the full cost and payoff of a bridge between two homes, use the US swing loan calculator .
Use the right country page
This page stays in US dollars and uses US terms: second lien, CLTV, annual rates and origination points. The country choices above the inputs open separate local pages. Choosing United Kingdom opens the UK second charge bridging loan calculator, which uses monthly rates, arrangement fees and combined LTV on the gross debt. The inputs reset and amounts are not converted.
Inputs for the second lien bridge loan calculator
Property value
The appraised or estimated value of the property.
First mortgage balance
What you still owe on the first mortgage, which stays in place and is repaid first.
Cash you need
The proceeds you need from the second lien. 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 months you expect to keep the bridge.
How interest is paid
Monthly payments do not change CLTV. Interest that accrues or is retained 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 combined LTV
The highest CLTV the lender allows, including the first 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 second lien bridge loan calculator questions
What is combined loan to value?
The first mortgage plus the second lien, divided by the property value. Lenders compare it with their maximum, often 80% to 85% on a home.
How much can I borrow on a second lien bridge loan?
The property value times the lender's maximum CLTV, minus your first mortgage balance. On an $800,000 home with a $450,000 mortgage and an 80% limit, that is $190,000.
Why are second lien loans more expensive?
The second lender is repaid only after the first mortgage, so it takes more risk and usually charges a higher rate and fees.
Do I need my first lender's approval?
Not always, but some first mortgages restrict additional liens. Check your mortgage documents and ask the lender.
What happens when I change country?
The United Kingdom option opens the separate UK second charge bridging loan page, in pounds, with its own defaults. Your inputs are reset rather than converted.