Bridge Loan Interest Rates: What You Should Expect

Bridge loan interest is calculated on your loan amount and accrues daily, payable monthly (or per your payment schedule). A $300K bridge at 9% interest = $300K × 9% ÷ 12 months = $2,250/month interest. The interest rate is fixed for the loan's term, meaning your monthly interest payment doesn't change (assuming no additional borrowing). You pay interest only during the bridge term; principal is repaid when you exit (sell property or refinance). Interest-only keeps the payment below an amortizing loan at the same rate, but because bridge rates are higher, the monthly payment can still exceed a traditional mortgage's. The trade-off: paying 9% interest-only for 6 months totals $13,500. A traditional mortgage at 6% on the same $300K over 30 years costs $1,799/month, but extends over 360 months. For short-term bridging, interest-only structure is efficient; for long-term holds, mortgage structure is better.

LTV (loan-to-value) is the primary determinant of your bridge rate. LYNK Mortgage offers tiered pricing: 50% LTV gets 8.75%, 60% LTV gets 8.95%, and 70% LTV (the purchase maximum on 1–4 units) gets 9.50% (example pricing; actual rates vary). Why? Higher LTV means lower equity cushion, increasing lender risk. At 50% LTV, the property could drop 50% in value and the lender still recovers the loan. At 70% LTV, a 30% value drop puts the lender underwater. This simple relationship makes LTV the dominant rate factor. To get LYNK Mortgage's best rates, maximize down payment: a 40% down payment (60% LTV) gets better rates than 30% down (70% LTV). Conversely, minimizing down payment is convenient but costs more in interest. Calculate the trade-off: on a $300K purchase, putting 30% down instead of 40% keeps $30K in your pocket, and the extra 0.55% rate on the $210K loan costs about $1,155/year. For 6-month bridges, that premium (about $580) is cheap for preserving $30K of capital.

Beyond LTV, LYNK Mortgage rates vary by: Borrower experience (repeat investors get 0.25–0.5% discounts), property type (stabilized rentals get lower rates than distressed properties), and exit clarity (clear sale timeline or refi plan gets better rates than speculative acquisitions). Example: A first-time bridge borrower at 70% LTV on a distressed property might be priced at 9.75%. A repeat LYNK Mortgage borrower at 70% LTV on a stabilized multifamily might be 9.25%. The 0.5% difference is LYNK Mortgage's way of rewarding successful investors and lower-risk properties. Market conditions also shift rates: when LYNK Mortgage's cost of capital rises, bridge rates rise proportionally. During favorable market periods, rates compress. Request your specific rate quote from LYNK Mortgage based on your LTV, experience, and deal fundamentals; avoid assuming rates—they're individualized.