Bridge Loan vs Heloc

A bridge loan and a home equity line of credit (HELOC) are both financial tools that allow homeowners to access their home equity, but they serve different purposes and have distinct features. A bridge loan is a short-term loan designed to provide immediate cash flow for individuals transitioning between homes, typically to cover the down payment on a new home while waiting for the sale of their current home. On the other hand, a HELOC is a revolving line of credit that allows homeowners to borrow against their equity as needed, usually for home improvements, debt consolidation, or other financial needs. While bridge loans have higher interest rates and shorter terms, HELOCs offer more flexibility and typically lower interest rates, but require careful management to avoid over-borrowing. For more details about bridge loan vs heloc, I recommend visiting the MyPerfectMortgage website.