Question about Bridge Financing
Want to confirm my math.
Let's say I close on my new home on Oct 1. Mortgage is $440,000. My old home closes on Oct 7th. I need bridge financing to cover the gap.
For those 7 days, would I pay approx
My math is calculated as $440,000 x 4% = $17,600. 365 days / $17,600 = $48.22.
Total bridge loan for 7 days would be $48.22 x 7 = $337.53.
Is that correct? Or am I missing something here?
Thanks!
EDIT: Realized I should do the full home cost which would be $550,000 using the same formula as above. Therefore it would be $421.92 for 7 days.
Let's say I close on my new home on Oct 1. Mortgage is $440,000. My old home closes on Oct 7th. I need bridge financing to cover the gap.
For those 7 days, would I pay approx
My math is calculated as $440,000 x 4% = $17,600. 365 days / $17,600 = $48.22.
Total bridge loan for 7 days would be $48.22 x 7 = $337.53.
Is that correct? Or am I missing something here?
Thanks!
EDIT: Realized I should do the full home cost which would be $550,000 using the same formula as above. Therefore it would be $421.92 for 7 days.