The real estate market is hot in Greater Philadelphia, and competition is fierce among buyers in many suburban neighborhoods. It’s especially tough for buyers who have a home to sell, as many sellers are less likely to accept offers with a home sale contingency. However, there are options for these buyers, and one of them is the swing loan (sometimes called a “bridge loan”).
As Tom Howell, the President of Marathon Mortgage Services explains, a swing loan is a loan that allows borrowers to borrow some or all of the equity in their current home to buy a new home. It is a way to help use the equity in their unsold home for a down payment on a new home.
Marathon Mortgage can lend up to 80% of the value of a home if it is on the market, and a full 100% of the value if it is under contract to be sold with a clean commitment from the buyers. Some fees, including an appraisal fee, will apply, and the current rate is 6.5%, interest only.
If you’re interested in considering a swing loan, be sure to speak with your EveryHome agent or Marathon Mortgage directly by emailing Tom Howell at email@example.com.