When timing matters most in real estate, a bridge loan can provide fast, flexible financing to help buyers and investors move forward without waiting on traditional approval timelines. These short-term loans “bridge the gap” between the purchase of a new property and the sale or refinance of an existing one. Understanding the rates and fees associated with bridge loans is key to evaluating whether they’re the right solution for your situation.
Bridge loans are typically used for time-sensitive opportunities—such as closing on a new home before your current one sells, or securing an investment property that requires immediate funding. Below, we’ll break down current bridge loan rates, short-term trends, residential options, and common costs associated with this type of financing.
What Is a Bridge Loan?
A bridge loan is a short-term, asset-based loan that provides immediate liquidity using real estate as collateral. Unlike traditional mortgages, bridge loans are designed for speed. They allow borrowers to act quickly in situations where traditional financing would take too long—such as competitive home purchases, property upgrades, or short-term business needs.
Bridge loans typically last from 6 to 24 months, giving borrowers enough time to sell an existing property or arrange permanent financing. They are commonly provided by private lenders or hard money lenders, who focus on the property’s equity and value rather than the borrower’s credit profile. Because of their short duration and flexibility, bridge loans carry higher interest rates than conventional loans, but they often make the difference between closing a deal and missing an opportunity.
Bridge Loan Rates
Bridge loan rates vary depending on the lender, the loan’s purpose, and the amount of equity in the property. While traditional mortgage rates are influenced by central bank policy and credit markets, bridge loan rates are primarily based on risk and loan term. Most private bridge loans fall in the 9% to 12% range, though rates can fluctuate with market conditions and property type.
Borrowers benefit from the quick access to funds—often within a few business days—especially when timing is critical. For real estate investors, bridge loans can provide the agility needed to compete in fast-moving markets or secure properties before long-term financing becomes available. Despite the higher interest rates, many investors find the convenience and speed well worth the cost.
Short-Term Bridge Loan Rates Today
As of 2025, short-term bridge loan rates remain higher than traditional mortgage rates due to inflationary pressures and elevated lending risk. Most private and hard money lenders currently offer bridge financing between 10% and 13%, depending on the property’s equity position and borrower’s exit strategy. While these rates are higher than conventional options, they reflect the short-term, asset-based nature of the loan.
For borrowers, the key is understanding that bridge loans are meant to be temporary solutions. Their value lies in the ability to act quickly—buying time to sell an existing property, complete renovations, or arrange refinancing. The right lender will not only offer competitive rates but also structure flexible repayment terms that fit the borrower’s specific timeline and financial plan.
Residential Bridge Loan Rates
Residential bridge loans are used by homeowners and investors to transition between properties or unlock equity from existing real estate. Rates for these loans typically align with other short-term private lending products, averaging between 9% and 12% depending on the property’s location, loan-to-value ratio, and borrower profile.
While the rates are higher than standard home loans, the benefit is access to fast capital without the delays of conventional underwriting. This is especially helpful in hot real estate markets, where cash-like offers can make or break a purchase. By leveraging a bridge loan, borrowers can close on a new home quickly and then refinance into a long-term mortgage once their previous property sells.
Bridge Loan Rates 2025
Looking ahead to 2025, bridge loan rates are expected to remain relatively stable compared to late 2024 levels. Although interest rates across the broader mortgage market may begin to ease slightly, private and hard money bridge loan rates tend to adjust more slowly. As a result, borrowers can expect rates to hover in the 10–12% range through most of 2025, depending on the speed of rate cuts and overall real estate demand.
In California and other high-demand regions, competition for properties keeps private lending activity strong. For many borrowers, bridge loans will continue to serve as a critical financial tool—offering fast access to capital even as conventional mortgage options evolve. Staying informed on current rates helps borrowers plan effectively and secure the best possible terms for their needs.
Bridge Loan Fees
In addition to interest rates, bridge loans typically include origination fees, processing fees, and sometimes prepayment penalties—though many lenders waive these for short-term borrowers. Origination fees usually range from 1% to 3% of the loan amount, reflecting the cost of expedited underwriting and funding. Other costs can include appraisal, title, and escrow fees, similar to standard mortgage transactions.
Because bridge loans are short-term, total borrowing costs depend heavily on how quickly the loan is repaid. Borrowers who use the funds strategically—such as completing a flip, sale, or refinance within months—can minimize total interest paid. Working with a lender that offers transparent pricing and flexible terms, like California Hard Money Lender, helps ensure there are no surprises along the way.
IMPORTANT NOTE
This article is for educational purposes only and should not be considered financial, tax, or legal advice. Bridge loan rates and terms vary by lender, property type, and borrower qualifications. Before securing a bridge loan, consult a licensed mortgage professional or financial advisor for guidance specific to your situation and state regulations.