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Bridge

 

Bridge Loan

Short term mortgage financing that is in place between the termination of one loan and the beginning of another loan.  Also, a form of interim loan, generally made between a short term loan and a permanent (long term) loan, when the borrower needs to have more time before taking the long term financing.  Commonly used for construction or rehab.  Rates are higher than a conventional loan because financing is short term.

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