What a swing loan helps you bridge
A swing or bridge loan can cover a timing gap, such as closing on a new home before the existing home sells. Fannie Mae calls this a bridge (or swing) loan in its guidance. The terminology overlaps, but this page is written for a US borrower with USD amounts and origination-point terminology.
An expected sale is not a guaranteed repayment source. Check the actual maturity date, available sale proceeds, the monthly carrying cost of existing debts and the plan if closing is delayed. This calculator does not combine your existing mortgage payment, new mortgage payment, taxes or insurance with the swing-loan payment.
Annual rates and interest-only payments
The default rate option is annual nominal under a monthly convention: monthly rate = annual percentage ÷ 100 ÷ 12. In serviced mode, monthly interest = gross opening principal × monthly rate. The principal remains due at exit; an interest-only payment does not gradually pay it down.
The example rate is freely editable and is not a live US market quote. Use the interest rate specified in your lender’s commitment. APR can include fees and other cash-flow assumptions, so do not substitute a fee-inclusive APR for the bare rate without checking how it was calculated.
If a quote uses daily accrual, a 360-day or 365-day year, changing rates, an amortizing payment or a minimum-interest charge, this full-month constant-rate estimate will not reproduce its exact payoff. Ask the lender for its calculation and a payoff statement.
Origination points and separate closing costs
One point is one percent of the selected fee base. Enter origination points under Origination fee, then select whether the percentage uses net cash or gross opening debt. A separately paid fee is an upfront cash cost. A fee deducted from the advance increases the gross loan needed to leave the requested net cash.
Enter additional lender, legal, valuation or broker costs under Other quoted costs only if you will pay them separately at the start. They are not financed by this estimate. Do not enter a cost twice. The exit fee is a separate percentage paid at payoff; enter zero if it does not apply.
Total financing cost includes interest, origination fees, exit fees and entered additional costs. The payoff balance includes only what is due at exit. Adding separately paid fees or monthly interest to the payoff again would double-count them.
Worked example: a six-month US swing loan
Enter $100,000 net cash, a 12% annual nominal rate, a 6-month term and serviced interest. Set origination to 2%, based on net cash and paid separately. Leave exit fees and other costs at zero.
The monthly rate is 1%, so monthly interest is $1,000. Six payments total $6,000 interest. Origination is $2,000, giving $8,000 total financing cost. The separately paid upfront cost is $2,000 and the principal payoff is $100,000. These figures exclude the borrower’s other debts and ownership costs.
How to calculate swing loan cost step by step
To calculate swing loan cost, work through four steps. Divide the annual rate by 12 to get the monthly rate. Multiply the loan by the monthly rate for each month's interest, then by the number of months for the interest over the term. Add the origination points and any other fees. The total of interest and fees is the cost; the payoff is the loan itself when interest is paid monthly.
With the page defaults, a $250,000 swing loan at 12% a year for six months has a monthly rate of 1%, so interest is $2,500 a month and $15,000 over the term. Two points on $250,000 is $5,000, so the total cost of the swing loan is $20,000.00. The payoff at the end is $250,000, because the interest was paid each month.
When the quote defers interest
Choose Deferred simple if the lender charges simple interest on the opening balance and collects it at exit. Choose Monthly compound only if the quote actually capitalizes interest every month. On $100,000 at 1% monthly for 6 months with all fees zero, deferred simple interest is $6,000 while monthly compound interest is $6,152.02.
Retained simple withholds the term’s interest at the start. It can require a larger gross loan to deliver the same net cash. It is available as an explicit quote convention, not a claim that every US swing loan uses retained interest. The interest is already part of the gross debt and must not be added to principal again at payoff.
The annual effective option converts an effective annual rate into an equivalent monthly rate. Selecting a US page does not establish a compounding convention automatically; the chosen rate and interest settings must match the quotation.
Loan to value and your lender's limit
Enter the property value and any mortgage staying in place behind the loan. The calculator shows three loan-to-value figures: net LTV on the cash you receive, gross LTV at the start, and LTV at payoff, which includes interest added to the loan. Lenders test one of these against a maximum, so choose whether your terms measure the gross loan at the start or the balance at payoff.
With the default $250,000 on a $500,000 property and no other mortgage, net and gross LTV are both 50.00%, and because interest is paid monthly the balance at payoff stays at 50.00%. At an 80% limit, the most a lender would allow is a $400,000 gross loan, and the most cash that limit allows is $400,000.
Minimum interest periods and itemised fees
Some lenders charge interest for a minimum number of months even if you pay off sooner. Enter it under Minimum interest period and the calculator charges interest for the longer of that and your term. A $100,000 loan at 12% a year, with interest paid monthly and repaid after two months under a three-month minimum, pays interest for three months: $3,000.00 rather than $2,000.
Enter broker, appraisal and title and closing costs separately so the cash you have to use is clear. On a $200,000 loan, 1.5 points are $3,000 and a 0.75% broker fee is $1,500, both paid separately, and a $750 appraisal plus $2,200 of title and closing costs add $2,950. Costs paid at the start total $7,450.00, leaving $192,550.00 of the $200,000 to use.
Compare all four interest structures
Below the main result the calculator prices the same loan under every structure, so you can see how much the way interest is paid matters. With the defaults, retained interest costs $20,957.45 in total, rolled-up interest compounded monthly costs $20,380.04 and simple interest costs $20,000.00, whether it is paid monthly or at payoff. Retained costs more because the loan has to be larger to leave you the cash you need, and interest is charged on the larger amount.
Simple interest is cheapest here, but the right choice also depends on your cash flow: paying monthly needs income, while retained and rolled-up structures need none until payoff. Compare offers on total cost and on how the loan is repaid, not on the interest rate alone.
Loan approval and the exit plan are separate questions
This is a cost estimate, not an underwriting decision. Loan-to-value limits, documentation, debt obligations, state requirements and lender eligibility are not calculated. Fannie Mae’s guidance concerns mortgage underwriting and does not turn this calculator into a qualification check.
A delay in selling or refinancing can extend the borrowing period and change costs. The model does not calculate extensions, default charges or prepayment refunds. Confirm those terms and keep enough cash for any monthly payments and separate closing costs.
To look at loan to value in more depth, with a mortgage staying in place, use the bridge loan LTV calculator .
To compare two offers side by side, use the bridge loan comparison calculator .
Use the right country page
This page stays in USD, even if you previously used GBP elsewhere on the site. The country choices above the inputs open separate local pages. Choosing United Kingdom opens the UK bridging finance calculator and resets the inputs; amounts and results are not automatically exchanged or carried over.
For a quotation using UK bridging-finance terminology, visit the UK bridging finance calculator and use its own assumptions and GBP examples.
To explore the mathematics of interest on interest separately, use the compound interest calculator while keeping loan fees and payoff timing separate.
Inputs for the swing loan calculator
Amount you need
Net USD cash after retained interest and any deducted origination fee.
Property value
The lender's appraised value of the property securing the loan.
Existing mortgage staying in place
A mortgage that stays on the property behind this loan. It counts towards loan to value. Enter zero if none.
Lender's maximum loan to value
Your lender's limit. The 80% shown is only an illustration.
Limit measured on
Gross loan at the start, or the balance at payoff including interest added to the loan.
Quoted interest rate
Bare quoted rate, not a fee-inclusive APR.
Rate quoted per
Annual nominal with a monthly convention is the default; monthly and annual effective are explicit alternatives.
Term
Whole months from 1 to 60, with no partial-month or daily adjustment.
Minimum interest period
Months of interest the lender charges at least, even if you pay off sooner. Enter zero if none.
How interest is paid
Serviced monthly is the default illustration. Deferred simple, monthly compound and retained simple are separate quote conventions.
Origination fee (points)
Percentage charged on the selected net-cash or gross-principal basis.
Broker fee
A percentage charged on the same basis as the origination fee. Enter zero if none.
Appraisal fee and title and closing costs
Fixed amounts paid separately at the start, shown in the cash you have to use.
Exit fee
Percentage payable at payoff on the same selected fee basis.
Percentage fees based on
Both percentage fees use either net cash or gross opening loan.
Origination fee payment
Choose separately paid upfront costs or a fee deducted from the loan advance.
Other quoted costs
Any other cost paid separately at the start. Exclude anything entered above.
CALCULATOR QUESTIONS
US swing loan calculator questions
Is this the US version of the bridging calculator?
Yes. It estimates the same broad bridge-finance task with US terminology, USD amounts, annual-rate defaults and local content. The UK page remains separate even where the arithmetic is shared.
Does an interest-only payment reduce the principal?
No. Serviced interest pays that period’s interest. The gross principal remains due at payoff unless the actual contract includes principal repayments, which this model does not calculate.
Are origination points the same as the interest rate?
No. Points are an upfront or deducted fee based on the selected principal measure. Interest is calculated over time. Enter them separately.
Can I enter the advertised APR?
Use the quoted interest rate and enter fees separately. This calculator does not reverse a fee-inclusive APR into the contract rate.
Will this tell me whether I qualify?
No. It does not assess credit, property value, existing mortgage obligations, income or a lender’s eligibility rules.
How do you calculate swing loan cost?
Divide the annual rate by 12, multiply the loan by that monthly rate and by the number of months, then add points and other fees. At 12% a year, $250,000 for six months is $15,000 interest plus $5,000 of points, or $20,000.
How is loan to value calculated on a swing loan?
Divide the loan, plus any mortgage staying in place, by the property value. Net LTV uses the cash advanced, gross LTV the loan at the start, and payoff LTV the balance including interest added.
How much can I borrow against my property?
The calculator shows the most your lender's maximum LTV allows, as a gross loan and as cash you receive. In the default example an 80% limit on a $500,000 property allows $400,000.
Does the calculator include a minimum interest period?
Yes. Enter the number of months under Minimum interest period and interest is charged for the longer of that and your term.
What happens when I change country?
The selected country opens its own page and resets the inputs. It does not convert the money or apply a different country’s rules silently.