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). This makes bridge loans cheaper monthly than traditional mortgages (which require principal + interest) but with a higher rate. 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%, 70% LTV gets 9.50%, 75% LTV gets 9.75% (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 75% LTV, a 25% 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 30% down payment (70% LTV) gets better rates than 25% down (75% LTV). Conversely, minimizing down payment (75% LTV) is convenient but costs more in interest. Calculate the trade-off: is an extra 1% rate ($3,000/year on a $300K loan) worth the $15K you keep by reducing down payment? For 6-month bridges, that 1% rate premium ($1,500) is cheap for preserving $15K 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.